What is the hidden trade secret behind the "boxed mattress"?

Since Casper proposed the concept of "mattress in a box" in 2014, many entrepreneurs who are more sensitive to technology have been launching new mattress brands online. Each brand offers state-of-the-art mattresses made from patented new materials or innovative designs that compress the mattress into small boxes for easy transport.

Layla mattresses are mattresses on two sides, one side is harder and one side is softer. Eight provides mattresses that integrate with smart homes to collect rest data while you sleep. Bear mattresses use Infrared Yarn Technology to help athletes and those who promote active lifestyles recover their strength. Avocado mattresses are made of all-organic, non-toxic materials.

How many “mattress-in-a-box” companies are on the Internet is hard to really know, but the CEO of a company thinks that there may be 150. Another person said that in fact there are nearly 500 such mattress manufacturers, but many manufacturers do not market to consumers.

In general, if you buy a mattress it is likely to be used for 8-10 years. When the old mattress is broken, or if there is a change in your life, such as getting married and having a new home, you will buy a new mattress. Spend about 1,000 US dollars to buy a good quality mattress. Because the price is in an affordable space and the frequency of purchases by most households is not high, it is precisely for this reason that many people believe that selling mattresses online is an opportunity.

Daniel Galle, co-founder of Nolah Sleep, said: “There are mattress makers everywhere. If you find a manufacturer, you can build a mattress for yourself, put a private label on it, brand your brand, and you enter the industry. The threshold is so low that so many brands will emerge."

How is an online mattress made?

Consumers buy a variety of things online, but mattresses are the last choice. In general, mattresses are sold through a “mother and wife shop,” and retail chains (such as Mattress Firm) and department stores sell. Because the profit margin of the mattress is relatively high (usually only $250 for a mattress), mattress shops need to sell only a few mattresses to offset the cost. Just because the industry has such a status quo, so in the United States there will be a large number of mattress sales shop.

Before the rise of online branded mattresses, most people did not know what brand they were sleeping on. They only knew that Tempur-Pedic was a pioneer in memory foam mattresses.

Why is it so? Partly because the industry deliberately created it. If consumers know what brand they are, they will go to other stores and buy at the lowest price. In this way, mattress shops will cut prices and compete with each other.

Mike Stewart, a partner at Bain and Company, said: "The couple does not want to compete with Mattress Firm, so each store basically buys slightly different mattresses, and consumers find it difficult to compare prices in different places. It's hard for people to understand your brand."

For decades, this phenomenon has become normal in the mattress industry, where moms and wives and chain stores sell unlicensed mattresses with high profits. However, Casper sold boxed mattresses for one month and sales reached US$1 million. The boxed concept overcomes logistics costs because mattresses are relatively large and expensive to transport, but they are easily transported in boxes after compression. . Ever since, many companies have seen the opportunity, mattress industry is a $ 15 billion market, if you can create a digital brand to attract Millennials, to seize some of the share, most likely to be successful.

Boxed mattress company is actually a digital marketing company

Why do so many brands emerge? Instead of using these companies as mattress companies, consider them as digital marketing companies. With the exception of a few special companies, such as Purple and Tomorrow Sleep (it is a subsidiary of Serta Simmons), most of the online mattress companies do not make their own mattresses, they will outsource manufacturing and then brand their products.

When designing mattresses, companies do participate, how they make it, what materials they use, and they will choose. Any brand that wants to make its own mattress special will certainly choose it, but the manufacture and assembly of the mattress is basically done by other companies.

Just as mattresses sold in physical stores, mattresses packed in boxes are equally profitable, that is, startups need only sell a small number of mattresses to recover costs. Because most of these companies only exist on the Internet, their operating costs are very low. Enterprises only need to maintain their own websites and play some ads on the Internet. Some big brands will buy physical advertising, such as Casper, which advertises on the New York subway, but the outsourcing and manufacturing of the product is outsourced.

Tomorrow Sleep founder and president Bryan Murphy said: “Someone asked me what kind of conditions are needed to enter the industry. If you open a Google AdWords account, buy digital advertising, and then find a subcontractor, you can sell your bed online. Pad."

According to Forbes, online mattress sales accounted for 5% of the total mattress sales in 2016, and this figure doubled in 2017. The size of the mattress market is about US$15 billion . In the end, the number of shares that online companies can take is not known, but it is very likely that they will hit the ceiling because most consumers (especially older people) want to try it out. Mattress before you buy.

In order to discourage consumer hesitation, online mattress retailers allow users to return goods for free within a certain period of time. The maximum period of time can be up to 3 months. To a certain extent, this measure is very effective. The market is growing. However, industry insider Curbed believes that when the online market reaches 20-30% of the total mattress sales, it will hit the ceiling.

There is one other factor that restricts the development of mattresses on the line: if you look at the mattress industry as a whole, it does not have much growth opportunities. The reason why online sales increase is at the expense of retail sales.

Utpal Dholakia, marketing professor at Rice University, said: “When a market matures like the mattress market, the growth in online sales generally comes from the shrinkage of traditional retailers. This shift is beneficial and slow because online channels have become More and more important, but there will be a limit."

With the intensification of competition, can all these companies survive?

In the short term, there will be many online mattress companies in the industry, because many of these companies have received VC support. The online market will expand, and many people believe that they can create a brand that will eventually become popular among consumer groups.

Investors are very patient with these companies because their operating costs are low. Although many companies are losing money, they do not have much to lose because most of the expenses are spent on buying online advertising, enhancing customer service, and maintaining the website.

At the same time, for mattress companies, the price of advertising is rising because new players are entering the battlefield. In the Google AdWords system, corporate bids all want to buy keywords related to "mattress" and "best mattresses." The more companies that compete, the higher the cost of attracting new customers. With the intensification of competition, some companies will be eliminated.

Scott Paladini, founder of Bear Mattress, said: “In the next few years, we will see online brands begin to disappear. When the industry grows rapidly, everyone can live nourishment, once the growth begins to become ordinary, the customer purchase costs It will rise, and companies will be under great pressure at the end of the year."

In fact, competition has begun to heat up. Before purchasing, consumers had no way to try most of the online mattresses. They could only resort to mattress evaluation websites such as MemoryFoamTalk and Sleeppopolis. The problem is that these websites are associated with individual online mattress companies and are still financially connected.

Recode recently published an article describing the relationship between MemoryFoamTalk and Nectar MemoryFoamTalk selected Nectar mattresses as the highest rated mattress. Casper sued Sleepopolis because it charged commissions, promoted certain branded products, and concealed the matter. After the lawsuit, Casper simply spent money to buy the site, and now Sleeppopolis's comments have begun to favor Casper.

The entire mattress industry has grown slowly. In order to compete for limited market share, a large number of players are contending with each other. It is understandable that such things will happen. There are many online mattress brands, and they all want to become heavyweight players. The time for the transition is limited, and competition is certainly full of blood.

Stewart said: "I think that in the boxed mattress business, there will eventually be 2-3 families. Then, the door is still open. If you have more innovative products and use the Internet to sell, you can still enter. ."

We are China manufacturer of high quality grade 55, grade 105 Threaded Rods and threaded bars in astm f1554 standard. Our advantages and more services of threaded steel rods includes:

1) Wide range of diameters from 1/2" - 4"

2) Customized Length from 100mm to 12000mm

3) Good threads at 60 degree

4) Good straightness: 1mm/m max

5) Even hardness on whole bars

5) Proper mechanical properties

7) Full sets of testing equipment: Surface, Dimenstion. Mechanical properties testing

8) Fast delivery time

Astm F1554 Threaded Rods

Grade 55 Threaded Rod,Astm F1554 Grade 105,Astm F1554 Threaded Rods,F1554 Grade 55 Threaded Rod

SHANDONG LE REN SPECIAL STEEL CO., LTD. , https://www.lerenspecialsteel.com