The Indian mattress industry has come a long way, in terms of, luring more consumers towards the organised segment. Consumers are now more health conscious and they are willing to spend on a good sleeping surface. With the ongoing consumer education on the ‘idea of sleep’, there has been a shift in consumer mindset, wherein, the consumers are now doing thorough research about the wide range of mattresses available in the market. Based on their research and requirements, consumers buy a mattress or any sleep product of their choice. While the indigenous market is growing and there is more potential to explore untapped markets in India, mattress firms are also navigating the international markets.  

A vague analysis of the recent research reports gives us an impression that Asia Pacific region is one of the fastest growing markets in the global mattress industry. India is one of the promising geographies for the global mattress industry. There are various consumer segments in the Indian mattress market. Manufacturers are coming up with a wide range of mattress options but not all of them have the potential to thrive in the Indian market. Indian consumers are largely price sensitive and even if, they are ready to spend more money, they need the mattress to meet all the requirements. In many cases, manufacturers may have invested a lot on the R&D of the sleep product but they may not find a market for it in India. In such cases, exporting a specific product lineup suiting the needs of the global consumers could add up to the company’s topline growth. 

The vital reasons to navigate the international markets  

There are various reasons that should pester mattress brands to look at the international markets. Catering to the international markets could increase the revenue potential of the brand and by expanding into the international markets, the Indian mattress industry can tap a new customer base and generate more revenues for the company. 

Having a presence in different geographies can also help brands in diversifying the risks. Brands must have a presence in all geographies which will help them keep their business growing. For instance, before the 2008 global economic meltdown, the Indian IT industry had a huge dependence on the financial services domain in the US markets. Post the bankruptcy of Lehman Brothers on September 15, 2008 and a subsequent international banking crisis, the Indian IT industry experienced severe business turbulence. It was after this incident, the Indian IT companies aimed at bagging domestic outsourcing deals. Instances like these gives an impression that relying solely on any one market can leave businesses vulnerable to fluctuations in the economy. 

Having a presence in different geographies can also help brands in diversifying the risks. Brands must have a presence in all geographies which will help them keep their business growing.

Having a presence in different geographies can also help brands in diversifying the risks while gaining access to new technologies, materials, and trends 

While the indigenous market is growing, mattress firms are also navigating the international markets. This also help brands in diversifying their risks

Meanwhile, exploring international markets can help gain access to new technologies, materials, and trends that may not be readily available in the domestic market. This can help drive innovation and product differentiation. By offering unique products and services that differentiate them from competitors knowledge and understanding of global consumer preferences, Meanwhile, exploring international markets can help gain access to new technologies, materials, and trends that may not be readily available in the domestic market. This can help drive innovation and product differentiation. By offering unique products and services that differentiate them from competitors knowledge and understanding of global consumer preferences, be readily available in the domestic market. This can help drive innovation and product differentiation. By offering unique products and services that differentiate them from competitors knowledge and understanding of global consumer preferences, market trends, and best practices. This can help Indian mattress manufacturers improve their products, services, and overall business operations. With a good understanding about the best global practices, Indian mattress brands can increase their market share and profitability, which will contribute towards building their brand image and reputation on a global scale. International expansion can facilitate the formation of strategic partnerships and alliances with foreign companies, distributors, or retailers. These partnerships can help Indian mattress manufacturers reach new customers, expand distribution channels, and accelerate growth. Additionally, some international markets may have less stringent regulatory requirements or lower taxes compared to the Indian market. This can contribute towards cost savings and operational efficiencies for the mattress industry. 

Strategies to expand in international markets

While expanding in international markets will offer numerous benefits to Indian mattress manufacturers, there are significant challenges that comes alongside the opportunities discussed earlier. “The ocean freight is more than 50% of the cost of the mattress. Import duty at the foreign port is 20 to 30% of the FOB value. Indian manufacturers can advertise and study the demand of the new products by participating in international Expos, Promoting their own website for publicity, tying up with large stores like Walmart and getting in touch with large Chain hotels like Holiday Inn, Sheraton etc. ” says Mr. Sundaresan, Secretary of Indian sleep products federation. 

Once the landed cost becomes too high. Over this the logistics cost, sales commission , etc boosts up the cost . This will not be as competitive as the local products. Some of the key challenges that could come along while expanding in international markets include understanding regional consumer preferences, complying with local regulations, and adapting products to meet varying standards and cultural expectations.As suggested by Tanay Kundu, Senior Consultant at Skil Global Business Solutions Private Limited, some of the key strategies to expand into international markets include :

  • Market research and entry strategy : Conduct comprehensive research to identify target markets with growth potential. Understand local preferences, sleeping habits, and consumer behavior to tailor your entry strategy – whether exporting directly, forming joint ventures, or partnering with local distributors.
  • Localization of products and marketing : Adapt mattress designs, materials, and sizes to meet regional standards and preferences. Customize marketing messages to resonate with local cultures, values, and languages, utilizing local influencers for effective outreach. 
  • Compliance with local regulations : Ensure products meet local safety and regulatory standards to avoid legal issues. Obtain necessary certifications and collaborate with legal experts to navigate each market’s regulatory environment. 

Catering to the international markets could increase the revenue potential of the brand, establish a new customer base and generate more revenues for the company.

  • Supply chain and logistics optimization : Develop efficient logistics strategies for shipping bulky items. Partner with reliable third-party logistics providers, establish regional distribution centers, and use compact packaging methods to enhance delivery efficiency. 
  • Customer support and after-sales service : Establish localized customer support teams to cater to different cultural expectations. Offer warranty and repair services, and ensure communication is available in local languages to build trust and enhance the customer experience. 

Conclusion

India mattress manufacturers are already exporting mattresses and sleep products globally but it still has lot to do in terms of, establishing its presence and credibility in the global market. By figuring out the available opportunities and addressing the challenges, Indian mattress brands could successfully establish themselves in global markets. “Expanding to international markets looks exciting but it also requires lot of planning. Companies have to explore if there is an opportunity for growth. The biggest challenge will be to address the global customer requirements, whether we can meet the customer requirements, beat the competition, establish a robust distribution setup in the international market, how do we manufacture? Stage by stage evaluation needs to be done thoroughly,” explains Vijay Palanna, Managing Director at Empulse Research and Data Analytics.

India is one of the promising geographies for the global mattress industry

India mattress manufacturers still have lot to do in terms of, establishing its presence and credibility in the global market

By establishing a strong digital presence through-commerce platforms, social media and online marketing, Indian mattress brands can reach the global audience, engage with customers and drive sales in international markets. Leveraging trade agreements and partnerships between India and other countries can provide opportunities for the Indian mattress industry to access new markets and reduce trade barriers, making it easier to enter international markets.