Sales Channel Trends - Mattress Industry
According to the global and United States reports, the top 5 mattress brands are Sealy, Serta, Simmons, Tempur Pedic, and Select Comfort. Both locally and globally, 95% of mattresses are distributed via vendors, while direct distribution to the customer takes up the remaining 5%. Despite the increasing popularity of online stores, 95% of the consumers still prefer to make their purchase from the traditional brick and mortar stores. There has also been an emergence of startup companies in the mattress distribution industry, but the conventional retailers still dominate.
The top 5 mattress manufacturers both globally and locally are Sealy, Serta, Simmons, Tempur Pedic, and Select Comfort. Each of these 5 brands own 19%, 17%, 15%, 12%, and 5% of the mattress production industry respectively. Mattress distribution via vendors collectively dominates the distribution channels, accounting for 95% both globally and locally. Only 5% are sold directly to the consumers.
Here is the breakdown of the distribution channels by sales:
Specialty Retailers: 43%
Furniture Retailers: 38%
Departmental Stores: 5%
Warehouse Clubs: 5%
In the United States, Sleepy's and Mattress Firm dominate the specialty retail space. In 2016, the U.S. major mattress retailer, Mattress Firm bought over Sleepy's, causing a major disruption in the country's mattress distribution. According to Forbes, this acquisition "created a sleep-distribution behemoth with more than 3,500 stores."
Below is the breakdown of the specialty retail space by market share.
Sleepy’s: 6.8 %
Mattress Firm: 6.7 %
Select Comfort: 5.7 %
The Sleep Train: 3 %
America’s Mattress: 2.2
Mattress Giant: 1.5 %
Back to Bed / Bedding Expert: 0.8 %
Sit ‘n Sleep: 0.7 %
Other: 72.5 %
MAJOR TRENDS IN THE MATTRESS DISTRIBUTION INDUSTRy
As evident in the market share and customer preference, the distribution of mattresses via traditional brick and mortar stores works best, in terms of number of sales, compared to online distribution in the U.S. Online stores accounted for only 5% of the total mattress sales in 2016. In addition, Inc.com quoted IBISWorld retail analyst Anya Cohen as saying "traditional brick-and-mortar mattress retail stores still control a significant portion of the mattress distribution industry which is estimated at $29.1 billion". Cohen added that "at least 95 percent of consumers prefer to buy [their] beds in [physical] stores, despite the popularity of online-only retailers." According to a recent survey that sought to examine consumer preference in purchasing a new mattress, 85% responded that they would consider buying a new mattress from brick and mortar stores, while only 27% of the respondents said they would consider making their purchase online. In addition, 74% of the respondents said they would consider purchasing a new mattress purchase from a specialty chain retailer, while 24% of the respondents were in favor of online-only mattress retailer.
New Companies Flooding the Market
The mattress industry has seen the emergence of several startup companies with improved technologies, materials and business models. The new business model includes improved online user experience, attractive warranty terms, the introduction of relation-based marketing, and compressed mattress-in-a-box delivery. These companies are driven to meet the consumer interest in sleep hygiene as well as health care. As such, they have made the industry more competitive, leading to more affordable mattresses for consumers. A major player in this space is Casper.
Other notably global trends in the mattress industry include increased demand of innerspring mattresses and a growing demand for mattress designed for the healthcare and hospitality industry.
Globally and in the United States, Sealy, Serta, Simmons, Tempur Pedic, and Select Comfort are the top 5 mattress manufacturers based on market share. The top 5 channels of mattress distribution both globally and in the United States are specialty retailers, furniture retailers, departmental stores, warehouse clubs and direct-to-customers. Although online mattress retail stores are gaining popularity, consumers still prefer to make their purchase from traditional brick and mortar stores.