State of Sleep in America

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State of Sleep in America

Currently, the only players in the intelligent bed market in the United States are Sleep Number, Eight Sleep, and Responsive Surface Technology LLC (ReST). In general, Americans have a positive attitude toward technology and innovations, mainly because such devices can make life easier, but their major concerns related to IoT devices are privacy and security risks.

Players in the Intelligent Bed Market in the U.S.

Sleep Number

  • Sleep Number was chosen because it the U.S. company that offers smart beds and mattresses, and it is one of the top players in the industry based on revenue.

Sleep Number — Product Offering

  • They have four different smart bed series: classic series, performance series, innovation series, and cooling memory foam.
  • Beds from classic series have the following options: dual adjustability, Responsive Air® technology, and SleepIQ® technology. These beds provide good comfort on each side and adjust proper spinal alignment after sensing movements.
  • Beds from the performance series have the same options as those from classic series, and one additional option — enhanced pressure-relief.
  • Beds from the innovation series have one additional option compared to the performance series — temperature balancing sleep surface.
  • Beds from the cooling memory foam series have the same options as those from the innovation series, but these beds contain cooling memory foam.
  • Sleep Number also offers a 100-night trial period, 25-year limited warranty, and home delivery, as well as an adjustable base.
  • The company offers customizable beds for kids and adjustable RV mattresses.
  • The company offers various accessories for bed and mattresses, pillows, and smart mattresses.

Eight Sleep

Eight Sleep — Product Offering

  • This company offers smart mattresses The Pod. This mattress has "advanced cooling and heating technology" from 55-110°F. It has a dual-zone option for each side, option of sleep tracking.
  • Wit The Pod, they also offer different gifts: gravity blanket, the pod sheet set, blue wave glasses, or the sleep fitness kit.
  • The 11'' mattress has "four layers of premium foam" and Active Grid technology.
  • The Eight Sleep Pod has the option to connect to smart home (Amazon Echo, Google Home, Nest, and Philips Hue).
  • The company offers a 100-night trial, free shipping, free returns. Also, financing is available from 0% APR.
  • The company also offers various accessories: the Pod sheet set, gravity blanket, the carbon air pillow, the Pod protector, the Pod foundation, sleep fitness kit, and blue wave glasses, some of which are free gifts with purchased Pod.

Responsive Surface Technology LLC (ReST)

Responsive Surface Technology LLC (ReST) — product offering

  • The product that ReST offers is the ReST Bed™. This product senses pressure and automatically responds to it, and it contains "customizable support for five individual body zones." These five zones include the head, shoulders, lumbar, hips, and legs.
  • The ReST Bed™ has "three modes of operation" that enable total customization. It can adjust automatically to meet user's needs and has the option to collect data and report about the user's sleep performance.
  • The product has an auto position mod, which doesn't change while sleeping. It "provides unique memory settings for back and side support."
  • The product contains sleep skin at surface — a "performance cooling fabric," which can be removed and washed in a machine; comfort layer — memory foam with gel which provides a "pressure-relieving" surface; smart sensor; and air chambers. There is also a ReST Bed app that can be downloaded and used with Android and iOS personal devices.
  • The company offers a "10-year full warranty on all parts and components."

U.S. Consumers' Perception Towards IoT Devices and Innovations

  • A recent study conducted by Ipsos indicates that Americans, in general, have a positive attitude towards technology and innovation. They see innovation as "a big part of American culture and history."
  • About 77% of Americans believe that a few highly innovative companies have too much power and wealth control. "Despite this, Americans are more in favor of allowing market competition (87%) to drive innovation than using regulation as a means of preventing unforeseen problems in the technological mass market (55%)."
  • According to TraQline's survey, 56% of Americans feel comfortable using IoT technology, and about 69% of households own at least one smart device.

Why Americans Accept Such Devices

  • Such devices can make life easier — 90% of people who own smart home devices think such devices can make life easier.
  • The benefits such devices provide — 40% of the people who use a smart device say that convenience is the biggest benefit of using such devices, about 20% of people use such devices because of the efficiency. Other reasons people accept such devices are comfort, customization, and "peace of mind."
  • Americans mostly use devices for energy savings, security, and convenience.
  • Convenience — home automation devices perform routine tasks automatically, which makes users experience great convenience.
  • Efficiency — smart home devices, such as smart thermostats or light bulbs, can save energy, thus help reduce utility costs over time.

Why Americans don't Accept Such Devices

  • Major concerns that people have related to IoT devices are privacy and security risks. However, most Americans still accept such devices, and they are ready to overlook such risks for the sake of convenience and other benefits. Sixty-six percent of Americans who own IoT devices think that these "devices are 'creepy' in the way they collect data about people and their behaviors."
  • Privacy — privacy issues with smart home devices worry about 70% of Americans.
  • IoT devices collect data about individuals and organizations, which create daily "data journals."
  • Some IoT devices have video cameras that offer important visual functionality, but vulnerabilities found in consumer IoT devices can leave the camera open to abuse. Some of these vulnerabilities are unencrypted communication channels or flawed API.
  • Security — According to the survey Consumer Attitude Towards IoT Security, about 50% of Americans are more worried that their IoT device will be attacked than their home burglarized. About 74% of respondents expect their IoT device to be secured by manufacturers, and 87% believe it is the manufacturers' responsibility to ensure that the devices are secured.
  • About 42% of Americans don't believe that "devices that receive on-air updates" are secure.

History of Sleeping Habits

  • According to a study from 2006, the average time that Americans spent in bed was 7.5 h, the average sleep duration was 6.1 h. Latency ranged from 13 to 36 minutes, and it was strongly associated with income; shorter latency was observed for persons with higher incomes. During weekdays, Americans spent in a bed, on average, 6.65 h, while on weekends, the average time was 7.26 h.
  • The highest prevalence of sleeping disorders among Americans was observed for sleep apnea (4.2%), insomnia (1.2%), and RLS (0.4%). "The predominant sleep habits were snoring while sleeping (48%), feeling unrested during the day (26.5%), and not getting enough sleep (26%)," while "the main sleep-related difficulties" were difficulty concentrating or remembering (25% and 18%, respectively).
  • According to the study published in Sleep Health Journal of the National Sleep Foundation, insufficient sleep on most nights was common for 28% of Americans, while about 31% slept sufficiently every night. About 30% of civilian workers and about 44% of night-shift workers reported less than 6 hours of sleep in 2014.
  • The same article reported an increase in prevalence of obstructive sleep apnea (OSA) during the period of 20 years, "from 24% of men and 9% of women to 34% of men and 17% of women, with 13% of adult men and 6% of adult women in the United States having moderate-to-severe OSA." The statistics were based on a newer definition of sleep apnea that doesn't require "a concomitant complaint of excessive daytime sleepiness." According to the previous definition, the prevalence was 4% for men and 2% for women, similar to the data from 2006.
  • According to the Sleep Foundation, Americans slept 7 hours and 36 minutes on average in 2014. On weekends they slept 40 minutes longer than on weekdays. Despite the good quantity, about 35% of Americans had "'poor' or 'only fair'" sleep, which was related to health problems, high stress, or low life satisfaction.
  • More than half of the population in the United States in 2014 used to take a nap, but the number of naps varied. About 23% used to take a nap 1-2 days per week, 13% took a nap 3-4 day, and 17% less than five days.
  • According to the latest survey, distracting thoughts (about 67% of millennials and 69% of baby boomers) or feeling hot or cold (about 52% of millennials and 44% ob baby boomers) are among the main sleeping distractions in 2020. Also, some respondents stated that they are distracted for no obvious reason (about 64% of millennials and 51% of baby boomers), often they couldn't sleep because of a nap during the day.
  • "Thinking about the next day" is often (26%) or sometimes (48%) the reason for the sleeping problem. Other distracting thoughts that keep Americans awake include "random fleeting thoughts" and "thinking about not sleeping."
  • According to the survey, about 25% of Americans who sleep less than 7 h watch Netflix longer than planned. In about 46% of the cases, the reason was the addiction to a favorite series, 29% was lost track of time, while in about 11% was "the need to watch latest episodes to avoid spoilers."

Buying Consideration

  • Price — price is one of the main factors Americans consider when buying mattresses.
  • A survey conducted by The Harris Poll in 2019 showed that about ten percent of Americans (one in ten) spent less than $200 on a mattress, while about "16% didn't spend anything at all." About 82% paid less than $500 for their current mattress.
  • Support and long-lasting — Support and long-lasting are among the top "most important features for sleep quality among Americans."
  • According to the survey by The Harris Poll, about 74% of respondents selected "support," while about 57% selected "long-lasting" as important features.
  • Made in the USA — Americas prefer buying mattresses made in the United States.
  • According to the survey by The Harris Poll, about 74% of respondents said that buying furniture items manufactured in the United States was important to them. The main reasons were "preserving jobs, supporting American companies, safety concerns, quality concerns, patriotism, human rights concerns, and then environmental impact."
  • Sustainability, Eco-friendly, and Ethical — Younger generation requires sustainable, ecological, and ethical products. According to the survey conducted by OnePoll, about 85% of respondents believe that small actions can make a big difference for the environment.
  • About 37% reported that they "often" purchase ethical and environmentally friendly products. They prefer buying "from a company that offers sustainable products (57%), uses organic or natural ingredients (51%) and that has good ethical practices (48%)."
  • Product Features and Brand Reputation — About 23% of customers consider product features, and about 22% consider brand reputation before making a decision which mattresses or other furniture items to buy, according to the research conducted by KPMG. These features are among the top three, right next to price and promotions (27%).

Research Strategy

Search for Casper's competitors mainly gave companies such as Purple Innovation, Inc., Leesa, Tuft & Needle, Nectar, and few other companies that produce and sell beds or mattresses and have a similar offering to Casper's current offering, but none of them is a competitor for their future intelligent beds. We looked through industry articles that compare competitors in the bed sphere of the industry. We also looked through news and market reports searching for top and key players in this industry, as well as through third-party data providers such as Crunchbase or Hoovers, looking directly for Casper's competitors. Since none of them revealed potential competitors for Casper's intelligent mattress, we began searching for manufacturers of smart mattresses and beds from the United States. Only three players in this industry segment in the United States appeared and were presented by multiple comparative studies and industry articles: Sleep Number Corporation, Eight Sleep, and Rest Bed. We provided details about these three companies.

To examine the history of sleeping habits from the last 10-20 years, we searched through current studies and analysis of sleeping habits as well as through studies conducted within the past 10-20 years, to enable comparison of the sleeping habits and distractions. To obtain data about considerations that push Americans to buy mattresses we looked for surveys, research articles, industry articles related to the mattress purchasing, as well as news articles and research reports focused on mattresses and furniture items since, during the search, we noticed overlaps of factors that influence customers' decision to buy mattresses with those that influence buying furniture.
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