Specialty sleep category soars while innerspring units drop
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There are two very different worlds in the mattress industry. One is a world of soaring unit and dollar growth and lofty selling prices. The other is a world of declining unit growth, slight dollar growth and far more modest selling prices.
In which world would you rather do business?
This is not just a hypothetical question. It is a question that confronts mattress producers and retailers every day.
The first world we described is the world of specialty sleep. The growth rates there are eye-popping. Last year, unit shipments of specialty mattresses jumped 24.3% and the dollar value of those shipments increased 29.5%. The average unit price of specialty mattresses rose 4.2% last year, to $559.23.
The second world, as you probably surmised, is the world of innerspring bedding. Innerspring mattress units declined 1.9% last year, while the dollar value of innerspring mattresses rose a modest 2.6%. The average unit price of an innerspring mattress last year was up 4.7% to $210.47, just over a third of the specialty mattress price.
All of those figures are from the 2011 Report of Sales and Trends just issued by the International Sleep Products Assn.
It's true that innerspring bedding still dominates on sales floors around the country. But specialty sleep continues to gain share rapidly. Last year, specialty sleep's mattress unit share jumped to 13.8%, up from 11.2% the previous year, and its dollar share jumped to 29.4%, up from 25.2% the previous year.
Similar gains are expected in the years to come, bedding observers say.
Retailers love the high selling prices of specialty sleep beds and the high satisfaction levels that come with those products. The sale of just one specialty sleep set can provide three times the sales dollars of one innerspring sleep set. Of course, the specialty sleep beds generally sell at higher prices and not all consumers can afford them.
The growth story being written by the specialty sleep segment is well known. But I was surprised with ISPA's report on innerspring's performance last year. That 1.9% unit decline means that segment suffered a recession last year. And since the innerspring category accounts for about 70% of the total dollar value of shipments and about 86% of total units, that recession was broadly felt. I didn't realize that the heart of the industry was in a recession in 2011.
The only thing preventing the industry as a whole from heading south in units was the stellar performance of specialty sleep. Its 24.3% mattress unit gain was enough to lift the entire industry into positive territory - barely - with a 0.2% unit gain.
Thank goodness for specialty sleep.
Kamila commented:
oooh i have a memory foam maesttrs.. i love it.. best thing ever!!!! when i bought mine about 2years ago, we where going to go for the tempur, but we got told if we were hot' sleepers not too apparantly they get really warm to sleep on and so get uncomfortable (!!!) i dunno how true this is, but we bought the cheaper version.. and have been made up with it ever since i would never buy a normal' maesttrs again now! ..enjoy..xxReferences :
Poolers commented:
Tempur mattresses are made from meormy foam, but the big difference is THE COST.I used to have a 4" meormy foam topper, and thought I was upgrading by buying a Tempur mattress. (I cut the topper up for the dog's bed) I later found out that my a3700-00 Tempur mattress has only 4" of meormy foam, and feels absolutely no different from my a3150 topper. Don't get sucked in by a fancy name, there are much cheaper, but equally as good meormy foam mattresses, and toppers on the market.References :
TheSpringKing commented:
FoamBoy. You make a lot of sense. Just tested by floor models per your instructions.
FoamBoy commented:
GreatExpectations. Nobody is attacking you. It's in your imagination. Proof that foam mattresses break down prematurely is on any retail floor in the world. Here is your test procedure. Visit a retailer selling foam mattresses. Sit on the edge of any foam bed in the area where a person would normally sit when getting into bed and getting out of bed. Feel the feel? Now get up and move down to the foot of the mattress and sit in the same edge area. Feel the feel? Now get up and go to the head of the mattress and sit in the same edge area. Feel the feel? The middle area is softer than the foot area and the head area. This is premature breakdown. And, this is on FLOOR MODELS! Exercise your imagination as to how this breakdown of the foam mattress will progress after one year, two years, three years, and on and on. Feel the feel!
RealisticExpectations commented:
It is the act of ignorance when again, FoamBoy would rather attack me personally because of a key error then speak to the fact that he is here to promote an inferior product. There is a reason you are in the business and it's because you saw Tempurpedic do something and you jumped on the band wagon. You wanted to ride the coat tails of the best. And let's be honest, Tempur started the specialty movement. 10 years ago, everyone laughed (talking the big S companies) that Tempur would never make it. Today they imitate and use Tempur's name to stack themselves against. When you make the BEST, everyone comes after you. So FoamBoy, with all the things you have thrown out there ie: foam beds break down (oh and by the way, there is your error as it's two words for that usage) then give the proof. Third party, independent research. Not your spin. Again, it seems to me and your need to attack me as a person, suggests you cannot do anything but. You are looking to cash in on your own product by jumping on a "trend" that grew in to success. Your screen name says it all.
FoamBoy commented:
Dear RealisticExpectations,
Please use spell check in the future. Question. If a mattress carries the Certi-Pur label would you and your household chemist approve the purchase. Of course you would. Many imported memory foam and hybrid innerspring mattresses are Certi-Pur endorsed and are rapidly being placed on retail floors throughout the country. If you buy one over a Tempur-Pedic you will save a thousand dollars and more which you then can invest in Tempur-Pedic stock.
Top Book commented:
Ok, after reading “RealisticExpectations” reply , one question... Just how dangerous to health are mattresses made in America?
RealisticExpectations commented:
One can only assume FoamBoy is a producer or retailer of his own foam product that struggles under the weight of proven product. Tempur set the bar and everyone else tries to imitate it. I'll stick to proven product such as Tempur versus those that are made off shore, leeching chemicals to cause my sheets and pillow cases to discolour. My husband, a chemist, found our "foam" product leeching formeldahide that we forced our bodies to sleep on for months. Economyb internationally is down. Everyone's stocks are down. It's business during crisis. Only the good will see it through. Goodbye and good riddens to that garbage!
RealisticExpectations commented:
One can only assume FoamBoy is a producer or retailer of his own foam product that struggles under the weight of proven product. Tempur set the bar and everyone else tries to imitate it. I'll stick to proven product such as Tempur versus those that are made off shore, leeching chemicals to cause my sheets and pillow cases to discolour. My husband, a chemist, found our "foam" product leeching formeldahide that we forced our bodies to sleep on for months. Economyb internationally is down. Everyone's stocks are down. It's business during crisis. Only the good will see it through. Goodbye and good riddens to that garbage!
KennyP commented:
Dave, Thanks for the open reporting and the great Bedding Conference this past week.
FoamBoy commented:
I said it before... Tempurpedic will fall and it has. Here's the deal. Tempurpedic beds are way overpriced compared to lesser known brands that are just as good at a third of the price. And, I am happy to see it. The big bully will soon be an "also ran". Sealy will now have a guest for afternoon tea. Ha, ha. Mattresses made of all poly foam will see a drop in share over the next two years because foam beds breakdown (soften up significantly) in the center third of the mattress which results in consumer complaints in two to five years after a purchase. As a result the hybrid design incorporating innerspring with specialty foams will begin to increase share in the market. Finally, remember when Lazy-Boy, Barcolounger, Stratolounger and Action Lane dominated the recliner business? Not any more. Over the next few years the Big S's will no longer dominate the mattress business as they do today. A cup of tea anyone?
Saft Bedder 3rd commented:
HEY whoa watch the mattress stox tumble,they are crashing all around down 40-50% in value what a disaster for investors and what a run up and now down the tubes they tumble
