The mattress market in India has been witnessing a consistent growth trajectory. The primary reason for this is that customers no longer consider the purchase of a mattress as a routine choice.  They are carefully weighing their options and comparing details such as materials used to make the mattress, the design element, and other USPs such as comfort and feel, and most importantly, they are evaluating the larger effects of the mattresses on their physical health.

This has allowed a lot more brands to enter the space, which for the longest time was led by legacy players or the larger unorganized sector. While the unorganized sector is still a major part of the industry, there are a lot more D2C start-ups like The Sleep Company, Sleepyhead, Duroflex, etc. that have entered the space.

The new-age D2C brands are making the consumer path to purchase easily through breakthrough concepts. They prioritize consumer experience via high-quality products and convenience through unique service delights like 100 Night free trial period, free doorstep delivery, and much more.

Why Brands Adopt Digital-First Strategy?

The digital-first customer is browsing and shopping from the entire online ecosystem today. Whether it's the website, marketplace, or social media platforms, D2C brands focus on being available and communicating through all these channels. 

For instance, apart from its website, Sleepyhead is present on all leading marketplaces like Flipkart and Amazon. Its products are built keeping all its consumers in mind, which includes metros and Tier I, II, and III cities.

“We want to be available in all places where our customer exists; thus, social media shopping is next in the pipeline followed by expansion across lifestyle and decor-focused marketplaces,” Mathew Joseph, CEO and Co-Founder, Sleepyhead said.

Simultaneously, The Sleep Company was launched in 2019 as a digital-only D2C mattress brand, so the online marketplace has been in its domain since the very beginning. Its products are available on its own website as well as on other e-commerce marketplaces like Amazon and Flipkart.

“90 percent of our business comes from the online space, of which 50 percent is through our website and the rest through the e-commerce players mentioned above,” Harshil Salot, Co-Founder, The Sleep Company stated.

Duroflex, too, understands that a lot of discoveries, as well as purchases for new-age consumers, happen online, that is why it is present on all major e-commerce platforms. In addition to its own website, the brand’s products are available on platforms like Amazon, Flipkart, Pepperfry, etc.

“We are also present on institutional sales platforms,” Mohanraj J, CEO, Duroflex added.

Why is it Imperative for Brands to have an Offline Presence?

India has seen rapid adoption of digital technologies over the past few years. However, as compared to other Asian and western markers, the full-fledged adoption of digital tech didn’t happen until much later. This has led to customers still wanting to “see” or “feel” a product before making a purchase. While this need has slowly decreased over time, as can be seen with the booming fashion industry, customers are still not fully comfortable making large ticket purchases online; the mattress industry is no different.

A good solid mattress will cost consumers anywhere between Rs 15,000-50,000. For a purchase that involves such a high investment, consumers are still dependent on a touch-and-feel factor. Thus, setting up an offline presence becomes even more important for a mattress brand.

Currently, The Sleep Company has two flagship stores, one in Bengaluru and the other in Hyderabad, which it opened in June’22 and August’22 respectively. Its strategy is to now set up another 25 stores across all major Tier I and II cities in the country. Once this is accomplished, the brand will be targeting further expansion into Tier III cities and towns.

“Setting up our offline outlets is done in conjunction with our online offerings because we realized that having a physical store will only augment our overall value proposition. Also, new-age consumers expect faster deliveries, thus, having an all-pervasive retail presence with a centralized inventory system in place allows us to meet these demands effectively,” Salot asserted.

“Tier I and II markets are the priority for Phase 1 of our retail expansion. Having already set up stores in Bengaluru and Hyderabad, we are looking at further targeting markets like Kerala, Chennai, Maharashtra, Gurgaon, and the Eastern regions of India,” he further added.

Similarly, Duroflex has a strong network of more than 50 brand experience centers where the consumers can try out the products and also get guidance from in-house sleep experts before they narrow down on a product. Apart from this, it also has a network of exclusive brand outlets and is present in numerous multi-brand outlets across India.

“A mattress is a high ticket-sized item that is going to last for about 7-10 years. So it is natural that before making the final decision, a customer would want to touch and feel the product even if they plan to buy it online. Moreover, a sizeable section of the consumer audience still prefers shopping offline to online when it comes to durables. Hence, it is important that we are where consumers are,” Mohanraj explained.

In the future, Sleepyhead also plans to launch its Experience Centres across the country.

Diversifying Product Portfolio

In terms of product expansion, The Sleep Company is working towards diversifying its product portfolio. The company’s product strategy for the near future entails expanding its portfolio to include a variety of furnishings and extending the application of its patented SmartGRID technology to go beyond just mattresses and office chairs to include any and all seating solutions such as vehicle seats, gaming chairs, and much more.

Sleepyhead launched its ‘home living’ vertical this year, which features bedroom and living room furniture, while the home décor/furnishing segment specializes in bed linens and cushion covers. With this, it has become a complete home lifestyle brand. The brand’s next goal is to establish itself as a favorite choice amongst digital consumers for modern home and decor products across India, especially in markets that still lean towards unbranded products in this category.

Duroflex also forayed into furniture with beds, sofas, and recliners about a year back, and it plans to keep building on this portfolio going forward.

Focus on Innovation

Sleepyhead disrupted the mattress category in India with the innovative Bed-In-A-Box concept where a bulky mattress gets roll-packed into a nifty box and gets delivered to the doorstep. Simultaneously, it introduced the revolutionary 100-night trial concept that lets the customer try the mattress at their own convenience and understand whether it suits their sleeping style and pattern.

“Mattress technology is one of the key areas of growth, and we recently launched our new formulation of Memory Foam - BodyIQ Orthopedic Memory Foam technology. At a cellular level, the foam is enhanced for better orthopedic support and smartly contours to the body for continued comfort throughout the night,” Joseph explained.

The technological innovation that sets The Sleep Company apart from its competitors in the industry is its patented SmartGRID technology. With over 2500 air channels set in a grid shape, products made using this technology ensure adaptable firmness, durability, reduced lifestyle-health issues, and reduced night sweats.

SmartGRID tech is designed to intelligently change firmness as per body weight, body part contours, and sleeping positions. This is in stark contrast to the popular choice, i.e. memory foam which has the same dense feel across all body parts. The SmartGRID mattress is designed to cushion the hips and shoulders while providing firm support to the back.

“As a modern brand, we keep a close eye on the market and map any and all trends in terms of consumer behavior. So, we are constantly on the lookout for any shifts or movement with respect to online buying, which can be expected with technological advancements like the WEB 3.0 and Metaverse or even with political developments like the government announcement regarding ONDCs. Needless to say, we will keep up with these changes and hope to always remain ahead of the curve,” Salot stated.

Tier II and III Markets Become Growth Drivers

Tier II and III markets are important because even these markets couldn’t escape the overall shift in demand drivers during the pandemic that left consumers with no choice but to opt for online modes of shopping. This paradigm shift led to the rise of a new kind of digital-forward and product-savvy consumer who is extremely quality-conscious, aware, and willing to research and compare product material as well as technology so as to make informed decisions.

“Our numbers are further proof of this egalitarian mix of customers. While 65 percent of our customers come from the top 35 cities in the country, the rest hail from Tier II and III cities, and they make up close to 40 percent of our business.  Thus, as we expand our national footprint, Tier II and III markets will continue to grow in their importance,” Harshil asserted.

“Tier II and III markets account for a large portion of our demand and we are increasing our scope in delivery and logistics management to cater to these areas efficiently,” Mathew noted.

“They are as important as metro cities. We are present in all major Tier II cities and we also have an entry-level product portfolio ‘Perfect Rest’ for the markets that are price conscious but want the best quality for themselves and their family,” Mohanraj added.

READ MORE: How Mattress Brands Have Changed Consumer Perception Towards the Segment?

Future of the Mattress Industry

Over the last year and a half, there has been a significant shift in consumer perception when it comes to lifestyle products.  Today, products like ergonomically supportive mattresses are no longer seen as a luxury, instead, they are considered as an investment in an overall healthier lifestyle. These sentiments, along with direct consumer connect and improved offerings by brands, have expedited the growth of the mattress industry. Hence, the global mattress industry is only going to move upward and is well on its way to reaching the expected revenue of $48,260 million by the end of 2026, growing at a CAGR of 5.8 percent during 2021-2026.

Talking about growth, Sleepyhead has seen 100 percent Y-o-Y growth for the last five years.

“We aim to emerge as a Rs 1,000 crore design-forward lifestyle brand by 2025,” Joseph said.

Additionally, The Sleep Company is in the process of international expansion. It is the first D2C Brand, especially in this sector, to operate internationally in markets like Japan and UAE within the first two years of operation.

“Our next target markets are the UK and EU, hopefully, this should translate into reality very soon,” Salot added.

Explaining the brand’s expansion plans, Mohanraj stated, “Our experience centers have received a great response, and hence, we will continue focusing on strengthening the network of experience centers. We have built our footprint in the North and are working on strengthening it.”