According to the CSIL report ‘E-commerce in the mattress industry’, the online mattress market had already been on a growth trajectory before the pandemic outbreak, which further intensified mattress demand and led to 2021 becoming the peak year for the online mattress market.

In 2022 the market saw its first contraction in many years, reacting to both a declining consumer confidence but also the reprisal of in-person shopping. Even so, the online channel grabs over 20% of the retail market, and 2023 values remain above pre-pandemic levels.

There are also stark differences in performance based on geographic location. The Asia Pacific region is the most diverse. Although China is by far the largest market, it is South Korea with the highest e-commerce share (over 30%), while India has continued to increase at double-digit growth levels. In Europe, Mediterranean markets are smaller and more laggard in terms of online penetration but are also the ones for which the expected fall in consumption is expected to be less extreme.

COMPETITION IN E-COMMERCE FOR MATTRESSES

Online mattress companies (OMCs) have been a disruptive new business model, whose traditional pillars are the direct-to-consumer relationship, boxed mattresses, and online sales. Born as pure e-tailers, today OMCs must adapt to the current market climate and embrace an omnichannel approach, either by opening stores or engaging in strategic partnerships with brick-and-mortar retailers.

In general, the online mattress market has been fragmented and highly competitive. The intense competition observed in recent years is showing signs of consolidation as several strategic deals have taken place in the last few years, by all actors along the supply chain.

Given the success of online retailing during the pandemic, and now that the peak has been surpassed, it is reasonable to assume that this is a moment ripe for consolidation by larger players in the sector.