Competitive Landscape for Serta Simmons Bedding

Part
01
of three
Part
01

Serta Simmons Bedding-Competitive Landscape

Two top competitors of Serta Simmons Bedding by market share of the US mattress and bedding industry are Tempur Sealy International and Sleep Number. Serta Simmons Bedding and Sleep Number have a total revenue of $1.6 billion each, while Tempur Sealy International, Inc. has a total revenue of $2.7 billion.

SERTA SIMMONS BEDDING

Total Revenue

Target Customers

  • Serta Simmons Bedding is targeting the hospitality industry, where it is the leading provider.
  • They also target residential consumers using the "exclusive Bellagio at Home® mattress collection."

Product/service offerings

  • Their product offerings include blankets, sheets, mattresses, bed frames, protectors, and accessories.

Differentiating factors

  • The company has four mattresses and bedding brands namely, Serta, Beautyrest, Tomorrow Sleep, and Tuft & Needle, through which it distributes a variety of products to end-users.
  • The company has 220 years of experience in the sleep business.

Competitive advantage

  • The company completed its merger with Tuft & Needle in 2018, allowing it to utilize all channels available for both businesses in reaching their customers.
  • The merger granted the company the ability to sell its product online and in-store.
  • Serta Simmons Bedding and Tuft & Needle, together, manages and owns two of the largest bedding brands in the industry, Simmons Bedding Company and National Bedding Company, and operates 36 manufacturing firms in the United States, one in Puerto Rico, and about five in Canada.

Marketing strategy

  • The company, in partnership with Mattress Firm, announced a $100 million marketing spend over an 18-month period in the multi-year partnership.
  • SSB is marketing its product through its social media channels. For example, on Twitter, Tuft & Needle has about 13,400 followers, while Serta has 22,100 followers. Both brands post updates about new products, discount offerings, and product availability to their customers and followers.
  • They also leverage the Amazon A+ content solutions to enhance engagement and outreach to potential customers.

TEMPUR SEALY INTERNATIONAL

Total revenue

Target customers

  • The company is targeting the hospitality industry using its hotel mattresses.
  • They also target retail customers through the company-owned retail store, and direct-to-consumer through its e-commerce platforms and other third-party vendors.

Product/service offerings

  • TEMPUR-Cloud and Flex, Stearns & Foster, TEMPUR-Contour, Sealy Hybrid, Sealy Response, adjustable bases, pillows, Sealy Conform, and Cocoon by Sealy.

Differentiating factors

  • Tempur Sealy International is regarded as the world's largest bedding provider and sells some of the most highly recognized mattress brands in the industry.
  • One of its top brands, Sealy, has more than 130 years of mattress business experience and have sold over 100 million mattresses over that period.

Competitive advantage

  • Tempur Sealy International boasts of 22 North American facilities and 34 international facilities.
  • The company made the Tempur-Pedic® pricing adjustments to help simplify pricing structures leading to increased velocities by reducing navigation challenges for retail sales associates and consumers.

Marketing strategy

  • "73% of advertising expenses experienced by the US part of the mattress industry are spent by Tempur-Pedic. Sealy has 2% of these expenses."
  • Tempur Sealy is marketing its product through its social media channel. For example, on Twitter, Tempur-Pedic has about 16,100 followers, while Sealy has 11,000 followers and 489,225 followers on Facebook.
  • Both brands post updates about new products, discount offerings and product availability to their customers and followers.
  • The company also outlined its four marketing strategies to use in recapturing the number one spot in the US in terms of market share.
  • The strategy includes expanding with current retailers, significantly increasing dollars and rates of direct advertising, innovating new product offerings, and exploring new channels.

Reason for Addition

  • Tempur Sealy International is listed as a top competitor of Serta Simmons Bedding and holds a 27.2% market share of the US mattress and bedding industry.

SLEEP NUMBER CORPORATION (FORMALLY, SELECT COMFORT CORPORATION)

Total revenue

Target customers

  • The company is targeting US citizens who are 35-64 years old, earn above-median income, and are health focused.
  • The product is also targeting National Football League (NFL) fans (by using NFL players) and the company has signed a new multi-year deal with the League.

Product/service offerings

  • Mattresses, bedding, pillows, bases, furniture, bed accessories, and sleep solutions.

Differentiating factors

  • The company claims to provide a seamless end-to-end customer experience using its vertically-integrated business model.
  • Sleep Number sells its product directly to the consumer with no third-party affiliations.
  • The company is one of the most trustworthy companies in the United States, according to Forbes.

Competitive advantage

  • The company's competitive advantages include proprietary sleep innovations, lifelong customer relationships, and exclusive distribution.
  • Sleep Number has over 4,000 team members and 560+ US stores to help reach its customer base.
  • Another key advantage of the company is its lifelong customer relationship with its brands and exclusive distribution.

Marketing strategy

  • The company is marketing its products through its partnership with the NFL, which owns the most significant marketing platforms on the planet.
  • They use a combination of national and local marketing techniques to reach their existing customers and to attract new customers.
  • Sleep Number is marketing its product through its social media channels. For example, on Twitter, the company has about 44,300 followers and 1.017 million followers on Facebook.
  • The brands post about new products, discount offerings, and product availability to their customers and followers.

Reason for Addition

  • Tempur Sealy International is listed as a top competitor of Serta Simmons Bedding and holds a 5.5% market share of the US mattress and bedding industry.

RESEARCH STRATEGY

We began by searching for market reports and business directory sources in an attempt to find the competitors of Serta Simmons Bedding. We found a company analysis by Crunchbase that listed the competitors of Serta Simmons Bedding. We also found a corroborative source, Zoominfo, who also listed similar companies as the top competitors of Serta Simmons Bedding (with the revenue data of these companies).

We conducted a further search for the market share of the listed competitors and found a report by Courant and The Mattress Underground on the market share of each of the top players in the industry. We then selected two of the companies with the largest market share after Serta Simmons Bedding.

Next, we conducted a thorough search through the websites of the companies' to find out details about their target customers, product/service offerings, differentiating factors, marketing strategies, and competitive advantages. We also leverage the information from business directory sources, such as Crunchbase and Hoover, which offered more insight into the companies.

Part
02
of three
Part
02

Mattress and Bedding Industry SWOT Analysis

The main factor propelling the mattress and bedding industry in the United States is the improvement in the standard of living and per capita income. A significant threat to the industry is the instability in oil prices.

Strengths

  • Customized mattresses: There is a considerable increase in consumer preference for customized mattresses in the US, leading to subsequent industry growth.
  • Revenue: The revenue of the United States mattress and bedding industry has seen a 3.3% increase from 2013 to $14 billion in 2018. The total number of businesses and employment is also growing together with the revenue.
  • Residential market hunt: There is an increase in the number of individuals in search of a residential home in the United States. This has led to the growth in the demand for a mattress.
  • Unemployment rate: A reduction in the rate of unemployment with a rise in per capita has strengthened consumers to go ahead in search of better homes and in-home furniture such as mattresses.
  • Mattress's average unit price: The average unit price of mattresses in the United States increased modestly in 2018, reversing a downward trend in 2017.

Weaknesses

  • Mattress Sales: The value of U.S.-made mattresses continued a two-year decline, going below 2016 levels. Compared with 2017, the United States mattress producers in 2018, shipped 2.4% fewer units valued at $8.3 billion.
  • Unit shipments cost: "Unit shipments of U.S.-produced mattresses and stationary foundations were 14.6% below the level of sales for the same period in 2018."
  • Harmful products: Consumers are beginning to reject the regular mattresses found in the market as a result of potentially harmful chemicals, allergies, pesticides, and the desire for healthier products.

Opportunities

Threats


RESEARCH STRATEGY

We began by searching through the public domain for trusted news articles, media publications, and other related sources for trends in the US mattress and bedding industry. Some sources that we searched in this regard include Forbes, BedTimes, Newyork Times, USA Today, and IBISWorld. Our search was fruitful as we found some breakdown of the opportunities and threats by IBISWorld and a comprehensive SWOT analysis done by Psmarketresearch on the United States mattress and bedding industry.
We further consulted the available details from the 2019 Mattress Industry Trends Report by the International Sleep Products Association (ISPA), which is a body in charge of sleep product manufacturers and suppliers in the United States. This source provided us with additional details about the weaknesses of the industry.
Part
03
of three
Part
03

Mattress and Bedding Trends

After an extensive search through trusted media sources, industry-related websites, mattress, and bedding industry associations (ISPA) websites, and industry statistic portals, details about the trends in the mattress and bedding industry do not appear to be available in the public domain. However, the research team was able to gather valuable insights about the mattress and bedding industry trends globally and an overview of the US mattress and bedding industry.

Overview

  • The mattress market in the US will be experiencing a steady growth in the coming years resulting from the improvement in mattress products and increased adoption of a gel-based memory foam mattress.
  • In 2018, the United States total revenue for the Bed & Mattress Industry was $14 billion representing a 3.3% annual growth from 2013.
  • Baby boomers, who represent 20% of the country's population, are the primary consumers' for memory foam mattresses in the US.
  • The industry has an estimated 15,542 business and has employed 50,262 people.
  • One of the primary drivers of industrial growth is the rise in consumers preference towards customized mattresses.
  • According to an International Sleep Products Association (ISPA) report, the total unit shipments of mattresses from countries producers and imports decreased by 10.8% in the second quarter of 2019.
  • "Unit shipments of U.S.-produced mattresses and stationary foundations were 14.6% below the level of sales for the same period in 2018."
  • Producers of mattress in the United States shipped about 2.4% fewer units in 2018 worth $8.3 billion.

Global Mattress and Bedding Industry

Preference for Customized Mattresses

Growing Demand for Eco-Friendly Mattresses

Need for multi-functional beds

  • The world is experiencing an increase in urbanization, leading to an evolution in the way residential houses are designed.
  • Consumers now find multi-functional beds an attractive option as it helps optimize home spacing.
  • “Multi-functional beds can be adjusted as per consumers’ requirement, and it comes with the added utility of being folded and used as sofas and recliner chairs.”
  • An example is the HiCan multimedia beds, which are designed with sizeable retractable HD projection screens.
  • They also come with LED reading lights, full multimedia complemented, and built-in PCs with game and entertainment consoles.
  • The adoption of multi-functional beds is expected to increase in the future, helping drive the global market.

RESEARCH STRATEGY

After an exhaustive search, we were unable to find reports in the public domain about the trends in the mattress and bedding industry in the United States.

We began by searching through the public domain for trusted news articles, media publications, and other related sources for trends in the US mattress and bedding industry. Some sources that we searched in this regard include Forbes, BedTimes, Newyork Times, USA Today, IBISWorld, and Inc.com. Most of the contents from these sources were mostly about the best kind of mattress to use, while other sources highlighted the recommended mattress for different health conditions. Although IBISWorld has a comprehensive analysis of the US mattress industry, which is behind a paywall.

Next, we consulted the International Sleep Products Association (ISPA), which is a body in charge of sleep product manufacturers and suppliers in the United States. The association provided a 2019 Mattress Industry Trends Report for the United States. Unfortunately, this report is only free to association members and is only available after purchase for non-members, making it impossible to access the information.

We also identified industry top players such as Sealy Corporation, Simmons Bedding Company, and Serta and searched through their websites to know if they have provided an analysis of the industry in which they are significant shareholders. This strategy proved futile as none of the top leaders had done a market analysis or carried out a survey about the US mattress and bedding industry.

Lastly, we expanded the width of our search to the North American region. We searched for industry reports such as Mordor Intelligence, Market & Market, Business Wire, and Furniture Today, hoping to find an analysis of the region and possibly, a breakdown by country. We were able to identify market reports which only revealed the market size for the US mattress and bedding industry with the full report containing the trends and industry being behind a paywall.

Furthermore, we looked at the top mattress and bedding review site to see if they have provided such information based on reviews from users but did not find any such report. We then resorted to the global report about the mattress and bedding industry. We leveraged sources such as Honest Mattress Reviews, Brandongaille, and Presient & Strategic Intelligence to provide the report on the global mattress and bedding industry trends.
Sources
Sources

From Part 01