Q How was 2023 for the Indian mattress industry and how do you see the industry shaping up in 2024?
It is interesting to see the evolving trends in the Indian mattress industry, especially with the increased focus on health and well-being post the pandemic. The shift towards innovative sleep technologies reflects changing consumer preferences and a growing awareness of the importance of quality sleep. While the growth in 2023 may have slowed compared to the previous two years, the overall positive outlook for the industry in 2024 suggests that consumers continue to prioritize products that contribute to better sleep and mattress is a beneficiary of that. Hence, as we step into 2024, we foresee a positive growth and outlook for this industry.
Q What were the main growth drivers for the industry last year and what are the factors that could possibly drive growth for the industry in 2024?
With the boom in residential real estate and people buying new homes, demand for the mattress industry was on the rise. Also, there has been a shift in the whole mindset wherein people are now more aware of the importance of sleep in overall well-being. This rise in awareness will continue to cater to the demand in 2024 and thus lead to industry players developing more technologically advanced and high-quality bedding products.
Q Please highlight about your growing omnichannel presence across India.
As we embarked on our online journey, we recognized that despite the digital shift, a significant 90 percent of our customers still preferred offline purchases because of the importance of touch and feel—a trend that is expected to persist. To truly resonate as a meaningful brand nationwide, we acknowledged the necessity of establishing an omnichannel presence. Diverging from the conventional approach of relying on dealers and distributors, we prioritized enhancing the customer experience by creating our network of omnichannel stores. This decision marked the beginning of our journey. Currently, we have 65 stores spanning 23 cities, all contributing significantly to our success. We want to be available to our customers wherever they are comfortable in making the purchase and thus we are committed to focus on further expanding and strengthening this omnichannel presence.
Q Please tell us about your expansion in tier 2 cities and how do you see the demand for mattresses growing in tier 2 cities?
We see great demand coming from tier-2 and tier-3 cities and as an online player, our well-established distribution network enables us to effectively reach and cater to a greater number of cities. In these cities, the awareness about the importance of quality sleep and new-age products that contribute to the same are growing at an impressive pace therefore contributing to the strong demand we are currently experiencing.
Q How should brands focus on promoting the idea of sleep among consumers? How can retailers also push the idea of sleep?
Brands need to invest more in educating their customers, particularly in our industry where creating a distinct category has been overlooked. The prevalence of a substantial unorganized market reflects this gap. As brands embrace the responsibility of category creation, we anticipate a shift towards a more branded market. Educating customers about the importance of investing in a quality mattress and its long-term impact on health is crucial. An effort to build awareness amongst customers will naturally drive demand for superior products once they understand the value it adds.
Q How can the organised segment stay more profitable when the unorganised segment is trying out new ways to lure customers?
Viewing it from the consumer’s perspective, unorganized market players offer lower-priced products due to reduced overheads and distribution costs. The challenge for organized players is to demonstrate why consumers should choose them over unorganized alternatives. This involves highlighting improvements in the product, offering a superior buying experience, and providing transparent terms and conditions, including product longevity and warranties.
Currently, there is low awareness about mattress brands in many segments, and price sensitivity is prevalent among customers. This has led to the growth of both organized and unorganized segments. However, by actively investing in customer education and delivering an enhanced purchasing experience, brands can naturally shift consumer preferences towards organized, branded products, thereby decreasing the prominence of unbranded alternatives.
Q How is The Sleep Company working towards ensuring sustainability and circular journey of mattresses?
SmartGRID is a completely recyclable material made out of food-grade polymers therefore making it sustainable. As part of our commitment to sustainability, we have embarked on a mattress recycling journey in collaboration with ISPF. This partnership ensures that old mattresses are recycled rather than ending up in landfills. We are dedicated to minimizing our environmental impact by actively participating in responsible disposal practices.