How branded mattress Cos have stolen a march over the unorganised sector

For long, the mattress industry in India has been dominated by the unorganised market. Though branded mattresses have been present for years, the market penetration had not been very strong – brands like Dunlop, Kurl-On, Sleepwell, Coirfit have been capturing significant market shares.

However, healthy and comfortable sleep solutions became the primary focus on consumers during the pandemic period, with people confined to their homes for extended periods during the lockdowns.

Even before the pandemic struck, there had been a shift to branded mattresses offering greater comfort and longevity. For a very long time, mattress brands had been offering PU Foam, Rubberized Coir, Spring Mattresses and memory foam mattresses. Now there is a greater stress on technology. Brands now winning over the market – The Sleep Company, Springfit, Peps, Duroflex, Sleepwell, Wakefit – are introducing customised and high-tech tech innovations in the form of Orthopaedic mattresses; SmartGRID support from The Sleep Company;, Cocoon mattress and mattress in a box from Sleepwell; EcoNap baby mattress from Duroflex, and more.

As per industry reports, India’s overall mattress market has grown at a CAGR of above 11 pe rcent over the last five years. The mattress category in India is worth Rs 12,000-13,000 crore, of which the organised segment commands a 40% share.

According to a Redseer report, the branded mattress market is expected to grow at a CAGR of ~13% over the next 5 years to constitute 37.5% of the market by 2022. Implementation of GST has narrowed the price gap between branded and unbranded players leading to increase in opportunity for branded mattress players. The report states that the mattress market in India, which stood at around $1.7 billion in 2018, is expected to grow at a CAGR of 10% to reach $2.5 billion by 2022.

A large part of the growth of the branded mattress market can be attributed to the efforts and investment made by mattress players to increase consumer awareness about quality mattresses through development of retail infrastructure and marketing activities, the Redseer report states.

Sharing her perspective, Smita Murarka, CMO, Duroflex, said, “The awareness regarding the importance of good sleep essentials was relatively lesser earlier. However, with the rising efforts by the brands in the industry, consumers have started acknowledging the importance of the right sleep essentials. She further remarked that the key to winning a consumer in this category is to create engaging educational content and ensure a seamless omnichannel experience. Also, since this is a product that requires significant investment, creating an environment where they can try the products in a homely setting is really important - that is where our network of experience centres comes in.”

Agreeing with Murarka, Ankit Garg, CEO & Co-Founder, Wakefit.co, said, “A good night’s sleep is at the crux of empowering our holistic wellbeing. This is bolstered by a good mattress that helps us unwind after a rigorous day and reduces stress and anxiety to promote a sense of calm. The right mattress creates an ideal balance of comfort and support, which helps in adopting a proper sleep posture while enabling our muscles and ligaments to relax. Selecting the right mattress is conducive to facilitating a healthy circadian rhythm.”

As per a Research and Markets report, while India’s overall mattress market has grown at a CAGR of over 11% in the last five years, the organised segment has grown at 17%. A shift is witnessed in consumer behaviour as conversations about healthy and sound sleep are becoming prevalent. Consumers these days are opting for sleep solutions that include mattresses, beds, furniture, bed linen, and more from the organised market.

Garg further said, “To cater to the dynamic needs of modern-day consumers, we introduced the Orthopaedic memory foam mattress, which seamlessly adapts to the shape of the sleeper’s body while providing uniform support throughout. Its superior design creates a comfortable experience while promoting sleep health, making it one of the most preferred products sold across our website. Our 100-day return policy has also been pivotal in building consumer trust and has become our winning strategy to cater to the needs of diverse consumer segments across the country.”

Speaking on the shift to the organised market, Vishal Sharma, Head of Marketing, Sleepwell, noted, “With the advent of GST, digital payments, branded experiences, information, selection assistance and transparent warranties/ services, customers have rapidly moved from the unorganised sector to organised branded industry specific to our segment in the last 2-3 years. Even when we talk about the value conscious consumers or focus towards the basic needs of the customers, we now offer branded solutions available at price points closer to the unorganised industry, but with the above benefits from branded offering point of view.”

He further said, “The competition from an e-commerce and omni-channel offering for brands like us, along with the earlier mentioned benefits, have greatly accelerated the movement from unorganised to organised, as today’s information has created awareness for the consumers to understand these benefits and make the right choices towards the branded industry players over the unorganised market layers.”