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How Customisation of Mattress Work For The Industry?
How Customisation of Mattress Work For The Industry?
INDIAN SLEEP
PRODUCTS FEDERATION
by ISPF
How
customisation
of mattress
work for the industry?
Cover Story 10
Editor
S. Sundaresan
How
customisation of
Project managed by
eMpulse Research and Data
Analytics (I) Pvt Ltd
mattress work
Printed at
Aditya Graphics and Printers
Interview 34 Reports 55
Design-Thinking, Customer- 45
Centricity: Perfect Materials for
a Good Mattress
Subodh Mehta, Senior VP, Godrej Interio
ISPA releases 2018
Mattress Industry
History 48 Trends Report
Turning points in India’s
Mattress Industry
In a country where the local Events 52
cotton ginner would sew a bed in
days, branded mattress wouldn’t
take roots so fast. But the
opportunity was there and it was
only a matter of time.
Feature List 18
ISPF organises Retail
Building a better bed: The role of Training Program at
manufacturers and suppliers Hyderabad
The manufacturers and raw material suppliers
are working together fruitfully in order to serve Inaugural edition 58
the best to the customers of Sleep Expo
Middle East ends
Challenges in distribution of bedding products 22
on a high note
FROM THE
EDITOR
W
e are called ‘Comfort role in the future of the industry. We
Times’. But in this issue we talk about new materials used inside
have chosen to confront and over a bed, we discuss the impact
a lot of uncomfortable of digital marketing as well as the
questions flanking the industry. Yes, it disruption ushered in by digital natives
is the third issue and we have already for traditional players, we unravel the
come a long way in understanding unpleasant side of old mattresses
the industry in terms of both depth from a health perspective, we explore
and contemporary context. But in this the potential of new elements like
issue, we dial the level of courage and mattress servicing and santisation,
curiosity many levels higher. and we argue again about the role of
associated products like good pillows
As you will notice, the cover in contributing to better sleep.
story itself, picks a crucial question
that the industry is grappling with. Of course, as always, these deep
Customisation – we try our best in dives are peppered with interesting
this story to get into as many layers of observations, multi-dimensional
this concept as possible. We give you analysis, engaging examples,
its upsides; the deterrents that hold entertaining trivia and relevant updates
this force back; as well as the many in the industry.
on-ground realities that envelope the
utopia of a personalised product. We have aimed to take a closer
and deeper look at some important
Similarly, we become brave and questions this time. The idea is to get
examine another critical challenge that the industry out of a comfort zone. The
afflicts the industry in our feature on goal is, like this magazine’s very first
distribution struggles. We delve into page intended, to create better sleep
factors like transportation, storage and and happier customers.
quality that punctuate this industry
aspect. Hope you get something out of this
issue. Hope we can accelerate that goal
We also apply the same sharp eye together and better.
and nose to other issues and ideas
that are going to have a pronounced Happy reading. Happy questioning.
S. SUNDARESAN
6
Sobha Limited
www.ispf.co.in
7
V I SI O N
Contribution for
New product on
a noble cause
Taking a novel initiative to support
the fore
the human life highly impacted by The Indian mattress industry is
the Cyclone Fani that hit the Odisha marked by yet another innovative
state in the first week of May 2019, product launched by New-Delhi
Century Mattresses has contributed Rs based online sleep solutions brand
5 lakhs to the Odisha Chief Minister’s Durfi. The flagship product of the
Relief Fund. This contribution has been company, Cotton Candy memory
made by the company with an aim to foam mattress is designed to keep
empower the Odisha state government the back aligned and has all the
in providing critical support in terms features to allow comfortable sleep.
of rebuilding homes, devastated The best part about the product is
infrastructure and ensuring the that it is fully customisable. Also, it
necessary daily needs of the victims. is directly shipped to the customers,
which means that the middlemen
are eliminated and this makes the
product highly affordable. As per pure high resilience comfort layer with
the company, “The product aims to airflow technology. Further, the Cotton
provide a quicker response at dispersing Candy foam mattress has a base
heat and properly regulates body support orthopaedic layer for ultimate
temperature as compared to traditional back support and is dust mite barrier
memory foam. It features 100 percent and insect-free.”
On an aggressive
growth path Sleepwell introduces Neem Fresche
Taking a step towards aggressive to protect you, while you sleep.
growth, online mattress start-up Sleepwell’s Neem Fresche treatment Our body’s perspires and sheds old
Wakefit is aiming to achieve Rs 260 in all its products promises to provide skin. These particles make way for
crore in FY20. By the end of this fiscal its consumers an Invisible Shield harmful microscopic microbes to
year, the company expects to earn of protection against microscopic flourish, which further, leads to various
Rs 80 crore revenue and Rs 8 crore allergens. allergies and health disorders.
net profit which would be up from Rs According to online reports, several Understanding this need of today’s
27.6 crore revenue and Rs 2.2 crore allergies - asthma, rhinitis and Health Conscious customers,
net profit that it earned in fiscal 2018. contact dermatitis were found to be Sleepwell has introduced Neem
The company also aims to expand its more prevalent among the Indian Fresche treatment to all its
warehouse network in the country from population. Mattresses, Furniture Cushioning,
four to seven and add 50 people to its Another Global study highlights that and Home Comforts Products. Neem
team by the year-end 2019. the market of Fresche provides
Allergic Rhinitis is an invisible Shield
growing. The market of protection
of allergic rhinitis will against microscopic
grow at the CAGR allergens by
of 7% during the forecasted period of preventing their breeding over a
2017 to 2023. The allergy or hay fever period of time. Sleepwell’s Neem
can be avoided by preventing one from Fresche is based on the collaboration
coming in contact with the allergen. with their International Partners
With this sensitivity towards allergens, – BioScience from Australia that
consumers are becoming more combines Traditional Power of Neem
conscious of their Health & Wellbeing. and a powerful Bio Active Agent
While consumers ensure the regular Fresche. Fresche Bioscience comes
cleaning of their house and assets for with an International Certification of
freshness, the core of the furniture US- EPA. Importantly, Neem Fresche
cushioning, mattresses and pillows Treatment does not Degrade with
remain unaddressed due to its built-up Frequent Washing or Cleaning and is
structure. environmentally safe.
Global News 9
How
customisation
of mattress
work for the industry?
Saves nine annoyed customers. Yes, believe it
or not, the age of custom-made mattresses
and sleeping-products has arrived. But what
is waking up and what is interrupting this
new industry wave?
Cover Story 11
G
etting a mattress was enough.
One ‘had’ to make peace with it.
Irrespective of one’s body type,
sleeping-position, preferences
and quirks about sleep; there was
always that ‘one mattress for all’.
talks about the poor state of sleep To understand the value getting there. As of now, to understand the
health in India. “Sleep health globally value of customisation and pay money for
has been ignored and more so in rapidly
of customisation and customisation - that is still far off for India,
developing country like India. The young pay money for customisation except for a few customers.”
population in our nation is so preoccupied - that is still far off for
with chasing success that it ends up A peek from the other side
ignoring sleep quantitatively, and more
India, except for a few Making good listeners in the form of
importantly, qualitatively. This sleep-deficit customers mattresses is not going to help users
retards their executive performance. Their alone. It is good lumbar support for the
creativity, problem-solving, and optimism industry as well.
get adversely affected.” Tushaar Goutam,
Director, Sheela Foam Mattresses receive the least bit
Dr. Yatin J Patel observes, and deals of attention while making homes.
with, a lot of sleep-disorders at his But, gradually the urban Indians are
private practice, Sneeze & Snooze Clinic, realizing the importance of good sleep
Indiana. As the Medical Director of the unique sleep needs. But he maintains and it’s direct impact on our health.
Center for Sleep Studies at Goshen that the bigger issue is our lack of focus Mr. Gaurav Gulati, a noted branding
Hospital and ‘The World’s Only Sleep Doc and our ignorance as to the importance expert, author and Personal Branding &
with a Notre Dame MBA’, as he prefers of sleep in helping us live a full and a Brand Engagement Consultant. “Hence,
to introduce himself, Dr. Yatin J Patel productive life. “Once you have made that the mattress industry - by encouraging
makes sense when he points out the commitment to getting a sound sleep of customisation - is providing the consumer
unique differences that every individual seven hours, then you can look for products with simple, smart, and effective sleep
has pertaining to the way one sleeps. that can help you achieve that.” solutions. Sound sleep makes a sound
“Yes, within a predefined range, each of us mind!”
has unique sleep needs. My wife needs six- These insights and questions find
and-a-half-hours to feel alert and energetic an echo elsewhere too. Mr. Tushaar However, such an evolution also
all day, while I need seven hours of sound Gautam, Director, Sheela Foam observes needs new models and approaches from
sleep to be at my best. According to the task that the fundamental research that is the industry so that customisation is a
force convened by the American Academy underway at the company (on the basic durable, pervasive and easy-to-execute
of Sleep Medicine and the National Sleep science of sleep) has revealed different strategy.
Foundation, we need sound sleep of seven needs for different kinds of bodies.
hours - give or take thirty minutes.” The issue that the industry, hence, The platform-based approach
confronts is ‘how to communicate this pioneered by brands like Casper is
He welcomes the burst of new sleep to customer – through sales channels, worth reckoning while discussing
products that aim to fill the void of doctors and other means’. “We are customisation in the industry. Casper, as
Mr. Daveed Kuruvilla, Director, Restolex
Coir Products Pvt Ltd notes, was
revolutionary in its implementation of a
new business model of selling directly to
the end consumer. “This sort of approach
would work anywhere as it reduces prices
for the customer, provides trial-periods
etc. When this approach began, players
like Casper marketed their product as a
mattress that’s perfect for all. This clearly
was not the case as different people like
different things. Now Casper offers multiple
types of mattresses, even incorporating
springs. So would the approach of selling
directly to customers online work? Most
definitely. Would marketing one mattress
to suit all work? Probably not.”
unstoppable after all Crocs footwear We have been in the says, customisation of mattress is an
success in India too is completely based industry for more than interesting scenario of our country.
on comfort and health, who wears it for During our research, we found that
fashion and style. Yeah, it may be a show- 31 years but the amount there is an absolute lack of awareness.
off for some.” of customisation requests Today, in India, branded companies
we get every day is nothing are serving only 15 percent of the
But Mr. Gaurav Gulati also underlines bed requirement. The remaining 85
the demand side here. “Basically, what compared to the scenario 30 percent is getting their bed made by
all customers consider while purchasing years ago. local manufactures or carpenters.
a mattress is their health condition Many of them, including the customers
and sleeping experience on a particular approaching them doesn’t know that
mattress.” the standards exist. The relevance of
Nirbhay Gupta,
CEO, Coirfit Mattress
standardisation is important when
Mr. Nirbhay Gupta, CEO, Coirfit you need many items from different
Mattress observes that with a paradigm companies to complete the solution.
shift in the choices of consumers, it has Hardware industry, Sanitary industry,
become mandatory to cater to the fast- sure it will completely suit the user’s Construction industry are some of the
growing demands of the consumers. “We body. “Because it is not just about selling examples. For using the bed for sleeping
have been in the industry for more than 31 a product but also about proffering a good purpose, you need many other items like
years but the amount of customisation sleep experience to the end user.” mattress, bedsheets, pillows etc which
requests we get every day is nothing is manufactured by different companies.
compared to the scenario 30 years ago.” “With more than million satisfied In order to get everything fitted well on
customers, Coirfit has a wide range of the bed, standardisation is a must. We
He explains how an entire mattress mattresses made to suit each person’s observed that customers build their
customisation is now possible based sleeping needs. We aim to deliver the bed without the knowledge of this
on the choice of fabric type, edge best mattresses keeping in mind all the and later get into the trouble of buying
design, size, comfort level and even preferences of the buyer. To accommodate customised mattresses, bed sheets etc.
the inside-layer configuration. our customer demands, we rely on every which will end up in an expensive and
“Therefore, we give an option to provide major to minor attention while designing time-consuming affair for them.
a completely customized mattress the mattress. From mattress comfort to
while guiding the user about the various mattress look, we work towards developing Mr. Saurabh Sharma slices the
advantages of different mattress layers. innovative, yet personalized, sleep systems issue further and says, though we are
We understand when it comes to health; for the users.” well equipped to do customisation of
there should be no scope of carelessness or any model, we are encouraging our
misguidance.” So customisation is good, but how customers and channel partners to
much of it can be real? promote standard variants for the
While customers are willing to benefit of them. This will help in reducing
experiment with a hybrid of latex + The Real Cut waste of material, time, effort and in the
memory-foam mattress or a medium There are many factors that can add end help us offer our products in a highly
comfort memory-foam mattress, new arguments on the customisation competitive price and faster delivery.
Mr. Nirbhay Gupta stresses that the aspect, when one looks beneath the
company does not believe in crafting superficial layers. Mr. Saurabh Sharma, If the mattress industry in India is
the same for them till the time it is made General Manager, Godrej Interio, ready to give that ease, comfort, and
Cover Story 15
Internationally there
are about six to eight
standard sizes; and brands
improvise their production
with least wastages due to
standardisation. This has
been possible due to strong
furniture associations to
create beds of standard
sizes, which looks absent in
India.
Nitin Gupta,
Director-Retail and Channel
sales, King Koil
Mr. Daveed Kuruvilla also weighs in The young population
this factor as a pronounced one. “In order
to encourage customisation of mattresses,
in our nation is so
we would first need to encourage educated preoccupied with chasing
Before you ask for Jeeves customers. Customers would have to know success that it ends up
The presence of unorganised players about the materials used in mattresses,
and lack of quality standards in the new technologies incorporated in these
ignoring sleep quantitatively,
industry make the situation harder materials, their feel, longevity, etc. As and more importantly,
to navigate, as hinted at by some top mattresses are a low-frequency purchase qualitatively.
industry players. this makes it challenging to have customers
who are well-versed and have information Yatin J Patel,
Mr. Nitin Gupta from King Koil enough to effectively customise their own a board-certified pulmonologist
India opines that till the time furniture mattresses.”
association in India really focus on
this standardisation, almost nothing We should first start encouraging
is possible at the level of mattress people to know about mattresses before
manufacturers. Needless to say, a we can encourage them to customise,
government intervention looks like a he suggests. “That said, there is already anything to experience something new and
best solution to enforce such move. a niche in the Indian market made up valuable.”
of customers who know exactly what
More importantly, for customisation they want and look for custom-made The issue, of course then, is our lack
to truly work, players as well as mattresses, and we are glad to help them of focus and our ignorance as to the
customers would have to rise to a new with their specific needs. After all we are in importance of sleep in helping us live
mindset and responsibility. Dr. Saroj the mattress business to help people sleep.” a full and a productive life, Dr. Yatin J
Sharma and Dr. Yatin J Patel both are Patel reminds. “Once you have made that
emphatic about the dire need for better Gaps, in the assessment of Mr. commitment to getting a sound sleep of
sleep hygiene and awareness in today’s Tushaar Gautam, are starker around the seven hours, then you can look for products
stress-and-addiction-heavy lifestyles. communication that happens between that can help you achieve that.”
People need to know how they sleep channels and customers. “Point-of-
before they work on how to sleep better. sale is a crucial 25 to 35 minutes of Providing healthy sleep is the
communication window where a lot can root cause for mattress industry to
Even Mr. Mahendra Pokharna, who is be achieved ahead.” But he hopes that consider customisation. As Mr. Tushaar
from the retail side, is worried about this customisation can help the industry in Gautam puts it industry has look at
huge lack of awareness that customers creating a niche market in the next four customisation is an opportunity for
exhibit when it comes to good sleep. to five years. future growth. Because, yes, what
“People do not know when to change the can be more valuable than a mattress
mattress. To introduce experience stores These hopes resonate well with that has been made specially for one’s
would a great idea, but basic awareness Mr. Gaurav Gulati’s optimism too. sleeping whims, fancies and fantasies!
is something that needs to be first worked “India is an emerging nation with a lot Only one thing - A mind who can create
upon.” of cash flow; buyers are willing to spend such a mattress!
18 Feature
D
ue to urbanisation, rising
disposable incomes and health
issues, the Indian mattress
market is growing at 10-15
percent annually. Of this, the organised
market share constitutes only 30
percent. However, now it is expected
that the market share of unorganised
mattress players which is led by street-
side shops and the local operators will
drop drastically in the coming years.
This is because Indians are increasingly
demanding branded and good quality
products. In fact, the mattress/bedding
market is gradually transitioning from
largely unbranded to branded market
which is expected to grow at a CAGR
of 13 percent over next five years to The manufacturers and Well, this way, the manufacturers
constitute nearly 40 percent of the take all the possible steps to stay
market by 2022. raw material suppliers abreast with the market trends, their
are working together customer expectations and needs to
In addition to people demanding good manufacture the best mattress product.
products, another reason behind this fruitfully in order to
trend is that of lately, the manufacturers
and raw suppliers are working together
serve the best to the 2. Adoption of new technologies:
The ultimate goal of any mattress
fruitfully in order to serve the best to customers manufacturer is to ensure that the
the customers. While manufacturers are consumer gets all the comfort that
adopting innovative technologies and he desires from his/her mattress. It is
methods to bring out a better product, has given rise to various lifestyle diseases. for this very reason that reliable and
the suppliers by supplying quality raw Also, these days, people have to work for top-notch manufacturers in India are
materials and machinery are ensuring longer and this involves sitting for hours concentrating on new technologies in
that the manufacturers are able to do. together. All these issues have resulted in order to make better mattresses. Thus,
various sleep problems. In such a scenario, the industry has naturally progressed
So, this article would explore the as manufacturers, we take it as our duty from unorganised cotton and foam-
individual contribution of manufacturers to give all the comfort to the customers based products to quality products with
as well as suppliers and their relationship while they sleep. For that, we engage with an infusion of technology. Some of the
in bringing out the best mattress product the customers and ask them about their latest technologies incorporated by
in the market... health problems and then look into the manufacturers to build a better product
best solutions that we can offer them.” include:
Strategies adopted by the
manufacturers Mr. Hemant Gupta, Director, a) Combination of innerspring and
1. Understanding customer’s Aerocom Cushions Pvt Ltd, shares a memory foam: The mattress that
requirement: similar thought. He avers, in addition is prepared by combining these two
The first and foremost thing that to understanding the customer’s needs types of technologies is known as the
the manufacturers are doing is and suggesting the product that would hybrid version and is considered best
understanding the need of the market/ suit them, we ensure that they get such for all kinds of sleepers. While inner
customers very well. Kundan Kankariya, products at an affordable price. We spring give better comfort (support)
Director, Kontak Comfort Products Pvt ensure that the product from inside and and sleep to the consumer, the outer
Ltd, notes, “Over the years, lifestyle of outside is of good quality and has a good layer made from memory foam gives
people has changed drastically and this life.” better pressure relief and comfort.
20 Feature
These days, new memory foams are elevation of the mattress can also be raw materials that are not only good but
also being used which have an open controlled with the help of the same perform specific functions, have unique
cell structure and this reduces heat remote control. features and offer something extra. Hence,
retention, improve airflow and keep the raw material suppliers are constantly
the foam cooler. Even gel memory 3. Increased usage of organic material: working towards supplying such materials.”
foam is increasingly being used by Since past several years, mattresses
the manufacturers as it provides were made using polyurethane foam, a He adds further, “What is heartening
enhanced pressure-relief and this petroleum-based material which emits to note that now not only big brands are
is good for patients who have joint volatile compounds that are harmful demanding quality materials but even local
pain issues. Few manufacturers are to both humans and the environment. mattress manufacturers are demanding
also making use of variable pressure Now, with the growing awareness them. They also want technologically
foaming technology which negates about the environment, customers are advanced materials and not just run-of-
the need for chemical blowing demanding mattresses that do not harm the-mill stuff. This is a good sign for growth
agents. the environment as well as humans of the bedding industry as a whole.”
b) Temperature controlled mattresses: and this is leading to manufacturers
Few mattress manufacturers in the using organic methods and material
country are also coming up with for making mattresses. This is the The new age
temperature controlled mattresses reason that materials like eco-latex
which are quite popular in other and bio-cotton are increasingly being machinery and
nations. A perfect fit for India's hot used. Mattress like organic innerspring materials are resulting
and humid climate, such mattresses mattress and plant-based memory
allow their temperature to be foam mattress are gaining prominence in increased production
controlled with the help of remote
control and thus ensure good sleep.
and attention from the manufacturers.
and improved
Not just the temperature but the 4. Paying attention to mattress cover: manufacturing
These days, manufacturers are not only
paying attention to the inner materials operations
and technology but they are focussing
on mattress cover technology as well Not only the raw material suppliers
which is also very important for the but even the machinery suppliers for
comfort and health of the customer. the bedding industry assume a lot of
importance in contributing towards
The mattress industry in Above are a few strategies that are making the best product. This is because
India has a lot of growth adopted by the manufacturers these an efficient machine which is highly
potential. The spending days in building a better product and automated and fast can manufacture
power of customers is increasing. expect support from the suppliers. Here, increased number of products which
In fact, today, even an average comes the importance of raw material are of good quality and save time,
Indian customer is willing to spend and machinery suppliers. money and reduce wastage. Hence, the
a considerable sum for a good machinery suppliers are also constantly
quality mattress. Keeping this Strategies adopted by the suppliers engaged in coming up with improved
in mind, the manufacturers are Just like mattress manufacturers, even machines which can help the mattress
increasingly coming up with some the present-day suppliers have woken manufacturers in developing products
of the best mattresses that are up to the fact that it is necessary to that are of supreme quality.
made using innovative technology. supply the best quality raw materials
Well, not only manufacturers but so as to ensure that the end-products Relationship between the
even the suppliers are making all is good. Suppliers are also realising manufacturers and suppliers
the efforts to ensure that the best that it is necessary to cooperate with While the manufacturers strive hard
product is manufactured. the manufacturers to see that they get to come up with new solutions to give
Thus, it can be definitely concluded what they need in order to develop a better products to the consumers, the
that a good product can reach good product. suppliers ensure that the best of raw
the customer only with the joint materials and machinery is supplied
efforts of the manufacturer and Thus, in order to understand what the to the manufacturers in order to help
supplier. This presents dearth of mattress manufacturers want, suppliers them achieve their aim. Manufacturers
opportunities for growth for the actively engage with the manufacturers. and suppliers can function in the best
manufacturers as well as suppliers Mr. Rajiv Khanna, Director, Shiv Techfabs possible manner only when they work
in India who can work together to Pvt Ltd who is into mattress ticking together towards a common goal
build a better bed. fabric supplies business, says, “These that is developing the best mattress
days, manufacturers are demanding product.
22 Feature
T
he Indian market is witnessing a retail mattress sales. the competitiveness of exporters.
shift from unbranded or cotton-
based mattresses towards Brands are leveraging large Another hurdle in standardizing
branded mattresses. In recent distribution companies to have omni- shipping is a lack of prescribed size of
years, the average growth of Indian channel presence. Today, typically, mattresses as in western markets. This
comfort and bedding industry was customers can buy mattresses on lack of uniformity in Indian markets
10-12 percent per annum and this is the website and also from third-party puts an unnecessary burden on delivery
likely to grow at a CAGR of around 15 platforms such as Amazon, Flipkart, logistics.
percent in the next 5 years. However, Shopclues and Fabmart to name a few.
there are various challenges faced by Many companies are setting up owned Innovations to the rescue
mattress industry in terms of quality, stores in key markets. With the e-commerce trend, the
transportation, storage and getting culture of try-before-buying direct-to-
the distribution network right, that if Pain points consumer (DTC) model is on the rise
solutions aren't found in time, it could Mattresses by nature are a bulky posing logistics challenges. The ever-
derail the growth story. products and expensive, which is growing popularity of Amazon Prime
accentuated by a lack of affordable model of hyper-fast deliver is putting
Amidst all the roadblocks the industry transport companies to handle them. pressure on companies in terms of
is able to craft innovative solutions on the This restricts companies from expanding scaling their business. Customers
go, especially in packaging and shipping. their markets geographically and forces expect to get their product within one or
New age, internet savvy players have them to run their own fleet of vehicles two days.
adopted Direct To Consumer (DTC) for deliveries thus adding overheads to
approach while traditional players their operations. Companies like Casper in the US —
have mostly focused on expanding and which is now coming to Indian shores
strengthening their ground level multi- Infrastructural bottlenecks also — have shown radically new ways of
tier network. Evolution and upgradation add to the tremendous strain. Loss of packaging and shipping. Thanks to a
are evolving in real-time in retail touch transportation time & transaction time decade's old technique of compressing
points as well as technical innovations at ports, land borders adversely affects foam or mattress material to compact
helping to reach the market fast and forms, Casper was able to pack the
safe. mattress in a small box that can be
Over recent years, the delivered by players like Amazon. Once
Spurred by overall economic growth, sales channels for delivered, the pack would be unboxed
the logistics industry comprising to reveal a highly compressed mattress
road, rail, air and water — a $130 mattresses are shifting which would popup into its full shape
billion industry is expected to reach
$300 billion by 2020 — this growth
from bricks-and- slowly.
not withstanding, the logistics is the mortar stores to online This whole process itself though
toughest nut to crack for the mattress slow and tedious, turned out to be "an
industry so far. sales. It is estimated experience" customers loved to have.
that the e-commerce It was sheer serendipity. E-commerce
Over recent years, the sales channels led mattress players since then
for mattresses are shifting from bricks- channel claims around have taken to bed-in-a-box and the
and-mortar stores to online sales. It
is estimated that the e-commerce
10% of word retail "unboxing" phenomena to newer
heights. With this, the transportation
channel claims around 10% of word mattress sales and last mile delivery was solved
24 Feature
Conclusion
Finished product distribution is a vexing
issue in any industry. It is more so in
the mattress industry given the size
of the product and the need for careful
handling due to expensive, fragile
material involved. While, traditional
players have evolved a good strategy
over time, the new age Amazon-
like, hyper-fast age requires new
solutions. While, e-com companies
have turned to optimize packaging and
shipping, there is still a huge scope
for improvement in better handling
distribution.
Solutions
1. Traditional players have shown the road to solving 5. Typically, traditional companies utilizes logistics
vexing distribution issues. As demand increased, infrastructure hired for the supply of raw materials
the industry realized that it needed a better way to to the manufacturing facilities for onward supply of
optimize warehouse and order fulfilment operations. finished products and foams to the
Many companies prefer a logistics solution that would distributors
meet its business requirements and help it grow in the 6. Exclusive distributors are typically engaged in strategic
unpredictable business-to-consumer space. Most often proximity to the manufacturing facilities, which helps
the solution comes in the form of a third-party logistics reduce carriage expenses and minimize product
(3PL) and warehouse management system provider. damage. Most distributors have been associated with
2. E-commerce players have seen rising returns rate — these traditional companies over a long time — mostly
though lower than five to six percent lower than that over 20 years or more. Extensive and well developed
of the standard direct-to-consumer volume, it requires pan-India sales and distribution network and retail
attention, strategic insight, and an experienced logistics dealers for home-comfort products.
partner who can accept and reroute returns to the 7. The distribution network has to be well integrated with
appropriate recipients. That's where 3PL partners come the manufacturer’s IT platforms, that enables tracking
to the industry's rescue. secondary sales made by the distributors and dealers in
3. A time-tested formula is to engage exclusive real time.
distributors in strategic proximity to the manufacturing 8. The new GST regime has ensured that warehousing has
units, helping reduce carriage expenses and minimize got a leg up and it is easy to transport finished products
product damage. across borders. While, traditional way of distribution
4. A large sales personnel actively engage with key was to establish manufacturing plants close to the
distributors thus ensuring the distribution channel target market, with warehousing and efficient 3PL
is well oiled and a positive feed-back loop is created. services available, a new model is emerging — using
Such a deeply integrated network of distributors and efficient warehouse management to distribute and 3PL
the companys' sales force help in aggregating demand as a JIT partner. It needs to be seen as to how efficient
signals and right-sizing the production and inventory. this model will turn out, though.
26 Feature
A
mattress is a slow-moving
product in India. The slow pace
with which mattress sales is
growing in comparison to the
available market potential is a serious
concern for the brands. Unorganised
mattress segment still dominates most
of the regions of India. Despite the
brand’s introducing various innovative
products in the market, the frequency of
mattress repurchase is still slow.
breeding in the old mattress. The symptoms. Here it is to be noted that the bed structure. However, what they
consumers continue to complain about older the mattress, the more dust mites forget is that it is their old mattress
the unknown reason for their allergy it houses. which is a major sleep spoiler.
problems, without even realizing once Here is a detailed look at how an old
that their old mattress could be a reason Pain and old mattress issues go mattress can affect sleep and overall
for the same. hand in hand as an old mattress can health...
result in intense back and neck pain. As
For example, for several months, per Dr. Surendra Kumar Samar, General Ill-effects of an old
Ms. Pooja Khandelwal, a 30-year-old Physician and Surgeon, “If you sleep on mattress on health
charted accountant, did not realise that an old and unsupportive mattress (as it 1. Leads to chronic back and neck pain:
the dust allergy she had been suffering becomes soft after years of usage), then Pain and old mattress issues go hand
from past one year was actually due this can stress the ligaments, tendons in hand as an old mattress can result
to the dust mites in her old mattress. and joints of the spine. Also, it makes it in an intense back and neck pain.
“Almost every morning, I would get up difficult to maintain the right posture in As per Dr. Surendra Kumar Samar,
coughing and sneezing and that would night which can further aggravate lower General Physician and Surgeon, “If
continue for nearly half an hour. It was back pain. If this pain due to lack of proper you sleep on an old and unsupportive
only when I consulted my doctor that I sleep continue for long, then it can become mattress (as it becomes soft after
came to know that it might be due to the chronic and cause further sleeplessness.” years of usage), then this can stress
bed bugs and dust mites in my mattress. the ligaments, tendons and joints of
So, when the doctor suggested changing All old is not gold the spine. Also, it makes it difficult to
the mattress which was bought 15 years As per various industry reports, maintain the right posture in the night
ago, I acted upon immediately and to my “Nearly 70 percent of people who which can further aggravate lower
surprise, the problem subsided on its own,” use old mattress experience various back pain. If this pain due to lack of
says Ms. Pooja Khandelwal. Well, this health problems at some point in life.” proper sleep continues for long, then it
is the case with many individuals. The The sad part is that not even half of can become chronic and cause further
microscopic creatures like dust mites this percentage acknowledges this sleeplessness.”
trigger various allergies and lead to skin fact. Rather when people don’t get a 2. Triggers allergies and makes
problems and respiratory conditions good sleep or wake up with a pain in them worse: Various microscopic
as they damage lungs and promote a back or neck next morning, they blame creatures trigger various allergies
sore throat. They also worsen asthma it on the wrong posture, pillow or and lead to skin problems and
Feature 29
to get sleep by lying on their old, should be replaced much before eight
saggy and worn-out mattress, they years if the ones using it are above
tend to stay awake, sometimes past the age of 40 years as the body of
midnight and usually that’s the time such people may need more support
when the body starts feeling hungry when they sleep. However, if we
and craves for a small snack. So, this look at the Indian psychology, then
habit of eating due to boredom in people feel that mattress is a product
night result in making them obese. that can be used for years together
Also, poor sleep can weaken the and should not be replaced at least
immune system. for some 15-20 years unless and
Brand’s 6. Affects memory: Sleeplessness
through old mattress can negatively
until, it becomes completely worn
out before that. This thinking is
Responsibilities affect brain and memory and lead to absolutely wrong and needs to
Alzheimer's disease. As per the study be changed just like people’s old
Its high time for the Brand’s to take conducted by the scientists from mattress.
the initiative to make consumers the National Institute on Alcohol 2. Mattress becomes saggy: If the
aware of the harmful impact of Abuse and Alcoholism in the US, mattress is worn out or develops
the old mattress on their health. "Those who have sleepless nights a dent-like shape in the middle or
Once the consumer is aware of the have increased level of beta-amyloid gives a sinking feeling while sleeping
importance of a quality mattress plaque in their brain which is capable on a particular portion and the rest
for their mental, physical and of disrupting communication between looks fine, then it simply means that
emotional health, they would brain cells." the mattress has become old and
not mind enquiring more at the 7. Puts heart at a risk: A study needs to be replaced.
time of purchase and will also be conducted by the European Heart 3. The mattress loses its firmness:
willing to change their mattress Journal shows that people suffering The most common reason for this
after the expiry warranty period from lack of sleep or poor sleep could be the breaking of bed springs.
immediately. have 48 percent more chances of This again is a clear signal that the
Now, it is upon the industry developing a heart condition as mattress needs to be replaced.
players to decode this trend and compared to those who sleep well.
come up with more new, innovative Thus, an old mattress which does
yet affordable solutions to lure not let one sleep well can put the
more customers and satiate their heart at risk too.
needs.
Other factors propelling the need to
replace an old mattress
respiratory conditions. So, when an old mattress becomes
3. Leads to more stress: Old mattress a hub for bacteria, fungi and mold to Old mattresses have huge health
hugely impacts the sleep quality thrive, it needs to be changed. Also, implications. In the past years,
and lead to sleeplessness due to when it triggers numerous daily-life people used to wait for long to
back pain and other issues which in health problems like back pain, neck purchase a new mattress until they
turn increase the stress levels. This pain, sleeplessness and poor immunity, experienced health issues including
makes one feel tired and fatigued it needs to be replaced. Well, apart from sleep disorders.
during the entire day and hamper this, there are few other warning signs However, now, the trend
productivity. that clearly tell that the old mattress is changing and people are
4. Leads to snoring: An old and needs to be replaced. Here’s a look at increasingly becoming aware of
unsupportive mattress can even put them... the side effects of using an old
the airways under tension or the mattress.
tissues may be sunken and this can 1. Mattress was purchased 10 or This is leading to an increase in
lead to snoring. Further, since the more years back: No product is demand for mattresses in the
old mattress can take the shape of manufactured to last forever and country which is having a positive
the body, it can block the airways same is the case with mattresses. As impact on the mattress industry
easily. per the National Sleep Foundation, as a whole. Now, it is upon the
5. Leads to obesity: Poor sleep caused any mattress should not be used industry players to decode this
by poor and old mattress can also for more than eight years in order to trend and come up with more new,
promote binging and overeating, prevent it from becoming a farm of innovative yet affordable solutions
thereby, having an impact on weight. dust mites and bed bugs. to lure more customers and satiate
their needs.
Simply put, when people are not able Further, it states that mattress
30 Feature
No time to snooze
The industry has been embracing new ideas, models and product
propositions. It is fascinating to see how it is confronting new
challenges and opportunities alike – one layer at a time
T
he mattress-buying experience to machines that have changed the Duroflex echoes. “The logistics savings are
needed an overhaul from a long rolling and compression procedures in great and the quality is not compromised
time and that has been exactly a huge way on the manufacturing side. at all. I happily own and sleep on a Sleepy
the gap that Mattress-in-a-Box Investments and fresh approaches in Head mattress.”
(MIAB) players and online players have delivery models for the new world are
rushed in to fill. The traditional retail and also paying off for the time-starved and If you thought these models have
mattress-buying cycle has received a convenience-hungry customer. shaken up the industry already, wait
new blow that is being leveraged well till you see how technology is stirring
by players who can jump in to dance everything up and about.
with the new song that the customer is The logistics savings
humming. are great and A new way to push buttons
From smart beds, beds that cater to
Packing compressed mattresses the quality is not needs of different sleeping-partners,
in a box, making the opening and
assembling parts easy for the buyer, and
compromised at all. gadget-armed mattresses and sensor-
equipped pillows - technology, it seems,
giving a plethora of choices in colours I happily own and has literally made its way inside our
and types – that has disrupted the sleep escapades.
industry at a new level. To add to that, sleep on a Sleepy Head
a 100-day trial period is also something mattress. Everything around us is beginning to
that is unforeseen in the industry that be connected via the Internet: Smart TVs,
has, otherwise and for decades, worked As Mr. Himanshu Mehta from Smart kitchen appliances, Smart houses
on old-school distribution channels and Himrag Coir Products Pvt Ltd seconds, - things can be controlled with so much
models. MIAB as a concept is picking up fast in ease today. Our mattresses will soon
the industry. “We should look up to these follow suit, augurs Mr. Daveed Kuruvilla,
These changes can appear daunting new trends and match them. We should be Director, Restolex Coir Products Pvt Ltd
but they are also confronting the ready for a new growth trajectory that was
confusion, fatigue and complexity of absent in the last few years.” "Signs of this are already beginning
legacy distribution in a huge manner. A to show, for example, Beautyrest's
lot of this ease and speed that define MIAB is a fantastic innovation, Mr. Smart Base. This adjustable mattress
the MIAB models can be attributed Mathew Chandy, Managing Director, foundation can be controlled via
Feature 31
Amazon's Alexa or Google's Home also points out how natural, organic Indians are ready to
Assistant, which means you can and biodegradable products are a crying spend on anything
adjust your position by just saying the need.
command. It will be exciting to see
that is new and valuable as
Smart mattresses join the wave of In all these changes, long as it offers something
interconnected household appliances.” what is remarkable significant for the ease,
as a pattern is how
Mr. Mathew Chandy is also excited customer experience and
comfort, and experience that
about the Internet of Things (IoT) in participation is redefining customers seek
products and Virtual Reality (VR) in the way mattresses are made. Lego-
the company’s retail stores when he based designs - where a customer Gaurav Gulati,
assesses the next currents of innovation. can actually assemble a personalised a noted branding expert, author and Personal
mattress - are making their impact Branding & Brand Engagement Consultant
Yes, technology is about to arrive already. So is the emergence of new
like a power nap. Smart beds would be materials. Note how gel mattresses
the next Gutenberg turning-point for are not just being explored in new
the industry. Get ready to sleep on beds combinations with memory foam
or mattresses with sensory powers to but the third-generation foam is also
cool, heat, change shape, nudge, vibrate coming up as a pragmatic choice
or wake up. The industry is blending for taking care of equal pressure
technology and sleep in a never-before and comfort for the human body.
way indeed. Is the market ready? Of They are also working out well as cooling
course! Indians are not too different options and are resonating well with There is more underway in terms
from their global counterparts. customers in the Indian sub-continent of design progress. The industry
where the need for a ‘breathable’ is opening up strongly to new
Mr. Gaurav Gulati, a mattress is quite pronounced. As Mr. varieties apart from traditional
noted branding expert, Vishal S, MD, Fancy Foam indicates, memory-foam and coir products.
author and Personal there is palpable innovation happening There is no room for GelTouch
Branding & Brand in areas of spring and gel mattresses as Foam Center heat absorption
Engagement Consultant well for medically-special mattresses technology that keeps a person
reminds that Indians are ready to spend like orthopaedic options. cool and comfortable throughout
on anything that is new and valuable as the night. There is space for
long as it offers something significant A new way to sleep pocketed coil motion separation
for the ease, comfort, and experience Innovation is a constantly-evolving for optimal body support. There
that customers seek. process for any industry ‘to be there’ are anti-microbial and moisture-
as Mr. Raghav Menon, CEO, Mattress control mattresses around now as
A new way to roll Division, Sobha Ltd. defines it. “We well. To add to that, ‘ergonomic’
Besides these innovations, the are also looking at investments and and ‘organic’ are no more distant
way a bed’s firmness and softness encouraging people to try and use new adjectives for a mattress. They are
works would also undergo some products.” now integral parts of many design
changes, along with how design and models.
manufacturing areas stay abreast of But the biggest one that the industry
new customer needs. Look at how the needs, as he rightly argues, is that Earlier inner springs could not
market of airbed mattresses, those people need to buy ‘sleep’ and not just be compressed so now new
inflatable wonders made of Polyvinyl a mattress. technology and material are being
Chloride (PVC), is expanding. As per a introduced so that a direct-to-
research study ‘Airbed Mattress Market Even a medical expert who handles customer delivery can be easily
Research Report 2019’ from Reports many cases of sleep disorders agrees unboxed and enjoyed in a few
Monitor, it is growing at a Compounded strongly on this aspect. “For the majority hours as the rolled-up foam
Annual Growth Rate (CAGR) of 310.0 of India’s population, sleep education is expands to the desired shape.
percent during 2019-2025. critical. It will reduce highway fatalities. It For millennials, this is an added
will improve productivity of our workforce. attraction for their social media
“On innovation, I think we are doing Sleep-health will help people live a longer posts also. The flurry of unboxing-
quite well. Our mattresses now look, feel and healthier life full of energy, optimism, videos that are now a rage among
and perform up to global standards.” Mr. vigor, and vitality.” Dr. Yatin J Patel, sleep- Instagrammers and You Tubers can
Mathew Chandy asserts as he cites physician, Sneeze & Snooze Clinic, finally have something else besides
#Energise mattresses that look like Indiana emphasizes this predicament of chocolate boxes to zoom on.
they have been designed by Nike. He sleep-oblivion.
34 Interview
We sleep on a
Mattress but spend
on a Sofa
Mr. Raghav Menon, CEO/Executive Vice President,
Mattress Division, Sobha Ltd raises some bitter truths
and some exciting hopes alike in this candid
interview where he explains the focus on
premium-market, the conspicuous gap of
experience stores and the walls that stop
customisation from taking a good shape.
It’s a handy blue-print for anyone eager to
construct a better industry ahead.
Mr. Raghav Menon, CEO/Executive Vice President,
Mattress Division, Sobha Ltd
How did the company, a always been known for rigour, quality before-time in terms of our delivery
formidable name in the real- and a strict adherence to timelines. record. That is an edge that is provided
estate sector, enter into this We do not sub-contract too much and with the use of smart backward
space? Can you share your a major part of our delivery is driven integration and complete control over
journey’s highlights, so far? by in-house teams. That explains why the entire chain.
We have a strong legacy in the real- we have always been on-time and also
estate industry. The division catering to We are the only company with
sleep and wellness was incubated out
of pure passion. We sell wellness, not
Right now, I can hundred percent backward integration.
We are now delivering the same
sleep or mattresses– that is the focus observe a lot of standards and choice for customers by
that we strive for.
product-centricity. It completing the sleep and wellness part
of their homes.
India is now ready for products that is not enough to know
are in the upper-end bracket and are What is the Company’s strategy
carefully crafted for the customer who what you, as a player, and industry-focus?
wants to buy premium, high-quality want to sell. One has to We started off with institutional sales,
products and not just any mass-market and then forayed into retail. We have
product that does not understand their know what a customer variants that are into premium segment
needs well enough. This emphasis on
high-tier quality segment is a careful
needs – or whether a but not into mass segment. We have
a lot of products across the spectrum
decision that we took during the customer can afford of springs, memory foam and latex
inception of this division. mattresses. But we are positioning
what you have to offer ourselves in a special category
What is the role of backward and – these are questions and catering to a specific class of
forward integration in this customers.
industry? that are important
Integration is a big advantage for the
real-estate industry – both forward
ones to ask when Any specific reasons for choosing
the top-of-the-pyramid here?
and backward directions help. We have thinking of innovation. Mass market is a segment that is
36 Interview
O
The quality of h, just how we long for a better care of it – you will be more
peaceful undisturbed sleep careful choosing the right pillow. What
pillows is one and waking up well rested more, your neck contains seven of the
and refreshed. It is said that a spine’s 33 vertebrae. It is no surprise
of the most night's good sleep is the secret behind then that the neck pain, stiff neck and
important thing active minds and creative thinkers. We
often forget some simple things that
even persistent headaches could simply
be the result of poor pillow support
that stands help in getting a good night's sleep.
One of the most important things being
while in bed sleeping.
the neck.
T
Indian players have he digital natives are knocking in the US (IBISWorld) with just three
to pickup learnings on the doors of the traditional
$1.4 Billion mattress industry
companies – Serta Simmons Bedding,
Tempur Sealy and Select Comfort –
from their in India. With the online only
players making $ 41 mn (INR 290 crore)
raking up over 75 percent of the market
share. However, there are new entrants
counterparts from in an industry which has over 60 percent changing the rules of the game.
dominated by unorganized sector, this is
US. Some of the a significant portion. It is to be seen how Traditional mattress business
much would the new entrants make up Let’s look at how the traditional mattress
mattress companies in the estimated 9 percent CAGR. Rising business operated in the India. Prior to
in US are using online income levels and health consciousness,
growth in the real estate and hospitality
the new entrants, the mattress industry
was defined by well entrenched, decades
platform for reaching sector are some of the key factor in this
phenomenal growth.
old group with atleast 3 decades of
mattress manufacturing history dating
out to consumers. At All this action is happening in
back to pre-independence era or early
indepdendent India. Over a period of
the same time they an Indian mattress market which time many foreign brands either have
is estimated to be dominated by been brought in by incumbents or
are also facing the unorganzied sector making up to 70 entered through primary delaerships.
percent of the total market share.
challenges Contrast this with the $9 billion industry Though esablished brands strived
42 Feature
Traditional Practices
Traditionally, buyer’s experience has
been the biggest barriers in the Indian
market. Indian sleep market resonates
with a survey by Better Sleep Council,
which throws some interesting facts.
For consumers, the experience of
buying a mattress has been pretty
poor. Consumers are confused about
when to replace a mattress and how
much to spend. They’re overwhelmed Showrooms are for Products that “disrupts the market”
by the choice of product options and
the awkwardness of trying out beds in
touching, feeling and is also contributing to the change in
the traditional model of how things
public. Moreoever, the beds are hardly getting an experience were done (in delivery, marketing,
differentiable to an untrained eye of a services, etc.). Consumers find such
consumer. Not surprisingly, few would of the product first- options easier, cheaper, and better
disagree that the mattress industry is hand. But when it when compared to the traditional
inviting change. incumbents.
comes time to make a
Price mark-up is another feature
purchase, the New Digital Players
of the traditional mattress industry. Mattress startups aren’t alone in
This coupled with lack of transparency millennial consumer capitalizing on this trend. Consider the
made it difficult for consumers to make success that eyeglasses firm Warby
their buying decision – Often difference is prompted to order Parker has seen or what’s happened
between a INR 10,000 mattress and a online in the razor blade industry. In 2010,
INR 20,000 one could be a few additional Gillette had conquered 70 percent of
springs or a couple of extra inches of the American razor blade market with
cushioning. Bulk of the pricing would margins as high as 60 percent. However,
be because of the inherent overheads offline and online retailers have adopted since new, cheaper, DTC subscriptions
in the supply chain which includes a variety of innovative strategies to services Dollar Shave Club and Harry’s
manufacturer’s profit, C&F agent’s ensure customer satisfaction. have emerged, Gillette’s market share
cost, retailer’s profit and overhead, and has fallen to 54 percent. The same story
various sales commissions. The mattress industry has seen has played out in the Indian market.
some aggressive campaigning online.
Meanwhile, there has been visible Established players are now taking to Modern businesses aim to offer
shift in the consumers’ perspective. social media to run their campaigns. their customers a royal treatment. And
Informed by the global sleep industry, Their primary target is the millennials in India as in most developed markets,
Indian consumer’s focus is now on the whose aspirations are inspired by the special discounts and bundlings are
comfort and functionality of the product. global sleep trends. So instead of selling the rage. Not surprisingly, players have
To their credit, the traditional players mattress products, these players are implemented a number of lucrative
have been striving to be in line with the selling sleeping sound and staying offers that include cashback vouchers,
changing consumer preferences. Both healthy. large discounts, free trial period,
Certified by Orthopaedists.
Duroex’s Duropedic Range of Mattresses feature the exclusive Full Prone Support System
which provides optimum back support and spinal alignment. The Full Prone Support
System is tested and recommended by renowned orthopaedists in India and is certied by
the National Health Academy.
Available at all Duroflex Stores and Authorised Dealers | Andhra Pradesh Ph: 8142226259 |
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| www.duroflexworld.com
44 Feature
extended warranty, and similar. We The mattress makers lumbar support. This is also informed by
see the trend not only in the mattress
industry but also the companies
are coming up with a continuous experimentation and live
feedback through experience stores.
operating in other sectors who have product differentiation
started launching special offers to keep Conclusion
their customers hooked. and their ability to The digital natives are not shying away
communicate the from brick and mortar, rather they are
Web Stores aggressively embracing it. When an
For the Internet led mattress makers subtle changes they automaker can put up a showroom inside
such as Wakefit, Wink and Nod
customer experience extends beyond
have made in their a shopping mall why not a mattress
exprience center? Interestingly,
its webstore or a physical store. They products which showrooms are for touching, feeling
claim that the secret is in how it is and getting an experience of the product
delivered and what expereince the enhances the buyer’s firsthand but when it comes time to
customer will have. Upon receiving their sleeping experience make a purchase, the millenial consumer
mattress, customers promptly unbox it. is prompted to order online.
The very act of unboxing, unrolling the while reducing the cost
mattress is an experience the consumer
cherishes, claims a mattress dealer.
of ownership This emerging spending power
and attitudinal shifts around mattress
Even in this age of Amazon where purchasing, as well as the generation’s
anything can be boxed, shipped and purchase frequently (a $295 suitcase, a familiarity with digital platforms, have
delivered, this provides the customer a $1,000 mattress) must be profitable on encouraged companies to adopt a unique
unique interaction with the purchase. the first sale, and try to keep customers marketing approach to millennials. This
Mattress companies are leveraging a coming back by rolling out accessories quote from a Wall Street Journal article
unique compression technique which or new product lines. Those that sell captures the mood which is universal:
was around for a decade and available inexpensive items (razors, toothbrushes, “The target customers are younger, often
to everyone, and turn it into a delivery socks) must try to lock in customers for going through life changes that spur
story. Their webstore and digital repeat purchases, which many try to do them to upgrade their just out of college
experience is immensely enabled by through subscriptions. mattress, perhaps a marriage or baby.”
this packaging. Imagine the plight of
these companies if they had to ship fully “So many businesses are figuring
formed mattresses – the model would out ways not to have storefronts, but
be unprofitable. showrooms,” said Mr. John Eaton, a
clinical professor of marketing at the
Another tectonic change in the way W.P. Carey School of Business at Arizona
mattresses are sold is in the use of State University. He cited this shift from
offers. Take for instance, the Wakefit’s digital nativism to brick and mortar as
“Let’s Sleep Together for 100 Nights” a marketing strategy, comparing Tuft &
offer. This is a unique return back if not Needle’s showroom to a billboard.
satisfied concept that is making waves
in the industry. Apart from offering Product differentiation
discounts for online buyers takes the Another important development is
“Return Back” offer to new heights. By the way, the mattress makers are This emerging spending power
co-opting the consumer into a “sleep coming up with product differentiation and attitudinal shifts around
experiment”, mattress manufacturers are and their ability to communicate the mattress purchasing, as well as
creating a huge event around “sleep”. For subtle changes they have made in their the generation’s familiarity with
a ever stressed urban dweller in India, products which enhances the buyer’s digital platforms, have encouraged
this is a welcome change. sleeping experience while reducing companies to adopt a unique
the cost of ownership. As per a recent marketing approach to millennials.
The key to making the economics survey, backpain is the most prevalent Indian mattress companies should
of DTC companies work is balancing medical problem suffered by Indians. takeup challenge of offering their
acquisition costs with a customer’s A mattress that addresses this issue products online without relaying
lifetime value–how much the average square on wins no matter what the on the retailer. This will give an
customer spends on the company’s price is. Irrespective of what stuffing opportunity for the company to
products over the long term. There are goes inside the mattress, the mattress serve the end consumer directly
generally two ways DTC companies try manufacturers are researching on the and address his challenges of
to do this. Those that offer expensive right number of layers and density mattress buying.
products that customers aren’t likely to of foam and coir that gives the best
Interview 45
Design-Thinking, Customer-Centricity
What was the thought process We have also seen that are – First, continue to remain focussed
and company’s strategic outlook
for diversifying into the mattress
a customer’s focus, on customer centricity and strive to
deliver maximum value to our customer.
category? while shopping, is Second, strive to deliver sustainable
We diversified into the Home Furniture value to all other stakeholders (including
business a few years back, although we disproportionately high our channel partners) as well. Third,
have been manufacturing and marketing on beds and not on make customer understanding and
Godrej Steel cupboards since a very long design thinking as our primary tools to
time. We started nurturing Godrej Interio mattresses, although achieve our objectives.
brand both for Home Furniture and
Home Storage business; and attained
a mattress has a much What distinguishes your offerings
market leadership in a relatively short larger role to play from other alternatives in the
span of time. Thereafter, we started Industry? How important is
focussing on category extensions in ensuring proper ergonomics to the product
keeping in mind two objectives. First, posture and healthy proposition today?
we wanted to complete our offering Ergonomics is an important part of our
around home furniture category from sleep. product proposition as human beings
the customer’s point of view. We also spend 1/3rd of their time resting on the
wanted to explore new revenue streams mattress business? mattress. We have been doing some
for the business. This led to Godrej As we went deeper into the mattress fundamental research to understand
Interio exploring the Sleep products category we realised that a large part of various drivers of a great mattress.
category which has a direct relationship the market, still, remains unorganised Everyone is talking about right comfort
with beds. Globally, a mattress is and customer needs are not being and right support, but we, still, do not
considered a complementary category fully satisfied even today. This led have any reliable metrics for measuring
to home furniture and is also sold at to an increase in our interest in the both these parameters.
retail outlets together. mattress category. We are driven by
our mission which is “enriching life by We are also trying to understand
Can you share a peek into what transforming home and work spaces”. the response of various mattress
drives your strategy for the Three key rules that drive our strategy compositions to different body weights.
46 Interview
Also, in a highly sleep-deprived nation The share of sales Godrej Interio brand revealed that over
like India, there is a lot more to be 84 percent of children and teenagers
done to develop a sleep eco-system to from specialised retail in India are sleep-deprived! The study
facilitate a high quality of sleep which is in excess of 60 per cent is based on the insights sourced from
can improve the overall health and in most of these countries, the sleep-o-meter on www.sleepat10.
well-being of customers in a significant com, a platform that was introduced by
manner. We are using inputs available whereas the share of Godrej Interio mattresses in 2016. Till
from these research endeavours in mattress sales from date, over 3.5 lakh Indians have taken
designing and manufacturing sleep specialised retail avenues the sleep test. The video that has been
products - this also becomes our source released marking World Sleep Day is
of differentiation. Our new posture- in India is close to around focused towards parents aiming at
support range includes many of these 10 percent. the rising threat of sleep-deprivation
new gleanings and we are very happy among children as recorded by the
with the response that we have received sleep-o-meter.
from our customers. Subodh Mehta, Senior VP,
Godrej Interio
Coir, Inner spring, Foam and
What, in your reckoning, makes compressed products - what will
the Indian mattress industry endure as the most significant
different from the global Sleep Industry players and their retailers have material ahead?
and Wellness industry? a very important role to play in bringing Looking at this space in the usual
Indian mattress Industry is still evolving forth the importance of mattress in the manner we can say that the share of
and so are the Indian customers. overall sleep system through customer innerspring and special foam is going
In most of the developed world, a engagement efforts. to go up, continuously. However, we
mattress is sold in a very specialised want to look at the industry not only
manner through exclusive outlets. Can you share the idea behind, from an inside point of view (where we
Many companies are, primarily, in the and the response received for, the get too obsessed with material) but
business of selling only mattresses and new sleep@10 campaign? also from a customer’s point of view.
related products via retail. The share of Sleep@10 is a concept that actually Customers are looking for solutions
sales from specialised retail is in excess emerged from the product development which can ensure good deep sleep and
of 60 percent in most of these countries, stage of our health mattress range. whatever combination of material will
whereas the share of mattress sales As we delved deeper, we realised this satisfy this need will make the cut. We
from specialised retail avenues in India concern was much larger than the part see composites winning the race in due
is close to around 10 percent. of just selecting the right mattress. course.
Over 91 percent of Indians are sleep-
We have also seen that a deprived. Further insights gathered from Where do you see the next
customer’s focus, while shopping, our sleep-o-meter taken by over 3 lakh innovation in this category?
is disproportionately high on beds Indians, informed that our children, too, Two areas where innovation is likely to
and not on mattresses, although a are sleep-deprived. This demands for a happen or gather pace are as follows:
mattress has a much larger role to more serious discussion and approach Smart mattresses with all the required
play in ensuring proper posture and as it threatens the well-being of our sensors which can respond to, and
healthy sleep. However, this scenario nation. adjust as per, the exact needs of a
is changing. Health and well-being specific customer throughout a sleep-
are now gaining prominence in the We launched a new campaign on cycle. And Green quotient of a mattress:
customer’s mindshare. The relationship World Sleep Day under the aegis of our This needs to increase both in terms of
of sleep with health is presently being health awareness initiative- sleep@10. the use of green material, processes
increasingly researched and understood. The new commercial released by the and reduction of transportation carbon
foot-print.
We are also trying to understand the response of
What keeps you excited about the
various mattress compositions to different body future?
weights. Also, in a highly sleep-deprived nation Our mattress team derives maximum
satisfaction from a delighted customer.
like India, there is a lot more to be done to develop Whenever we get a message from our
customer appreciating a great product
a sleep eco-system to facilitate a high quality of experience or shopping experience, we
sleep which can improve the overall health and get excited. Such messages make our
day and motivate us to come to work
well-being of customers in a significant manner. the next day with renewed energy.
5th to 7th September 2019
Stand No. 73
A big opportunity:
Tap 400mn online Indian customers
A
fter the mega acquisition of so revenue gains shall add to domestic
India's largest e-commerce revenue receipts.
player (in terms of market
share), India can boast of Look at the opportunity from
three major e-tail giants and counting. another viewpoint. Of nearly 500 million
Walmart, Amazon and Paytm Mall Internet users, less than 20 percent
make up the e-tailing landscape today have shopped online, while less than 10
with quite a few funded startups trying percent are regular shoppers. Think of
to anchor in the much sought after the opportunity with Megabucks being
consumer destination. lined up for the titanic clash, Amazon.in,
Walmart, and Alibaba (via Reliance).
While, Walmart has a strong
global physical presence in retail The conflict &
space but lacks in e-commerce. The How opportunities for retailers
Flipkart deal can spur their online India's large community of retail
presence in Indian markets. Close on Building community traders are not humoured. They have
the heels of this acquisition, market Retailers and brand owners have been protesting against the Walmart-
is agog with Alibaba making inroads to create their own community Flipkart deal calling it a back-door entry
into the Indian market — a much and fan club to tap untapped for Walmart into multi-brand retail in
anticipated event — in collaboration online user base. Online companies India. The threat perceived is multifold.
with the other giant, Mukesh Ambani like Flipkart and Amazon have Walmart, the world's largest brick-and-
led Reliance. Once, Alibaba enters, established themselves in Indian mortar retail company, can now source
the market which is already in the market with attractive pricing and the cheapest material globally and
throes of severe competition among easy to shop experience. Going sell its own inventory on the platform
the incumbents is likely to enter a forward more and more consumers of Flipkart. However, these could well
period of stratospheric competition. start using online medium for be imagined evils. Both Amazon and
Meanwhile, Amazon is in talks to buy shopping. This is the right time for Walmart before have demonstrated
49 percent stake in Aditya Birla's More retailers and brands to offer their that they could open up the world to
supermarket chain. products. traditional Indian firms.
Companies can build online
The question is whether this bodes community with the help of Amazon says it is enabling sellers
well for India, its smaller retail chains website, social media, WhatsApp from small towns in India by helping them
and branded stores. First, let us look at and direct online channels like scale up their businesses and leveraging
the impact of this new-found vigour in newsletters. the digital economy. Amazon reportedly
the market on the Indian economy. At has over 50,000 Indian sellers as part
the on-set is it easy to infer that the of their global selling programme; 80
Indian e-commerce market is expected need for qualitative and quantitative percent of them are from tier 2 cities.
to see broad-based growth with better infrastructural development. Innovation For sellers and manufacturers, it is an
productivity. in delivery and service is the new focus. incentive to produce quality products
An era of Hyper-speed delivery time is and tap the opportunity to connect with
The very first beneficiary of this ushered in. For the bedding industry, millions of Amazon's customers.
activity is the customer. Lower prices this is god-sent since the best practices
and more variety are the order of brought in by Amazon and Walmart If Amazon is taking 'Make in India'
the day. Product differentiation and from developed markets will likely spill to the markets, Walmart is spinning
localization are also creating a diverse over and benefit local players as well. success stories of Indian manufacturers
product basket of options. in global markets, "Making ready for
The current feverish activities across the world". Walmart has set up global
Operational efficiency is getting verticals will boost output growth and sourcing centre in Bengaluru to source
a leg up. Efficient supply chain and increase employment opportunities India-made products to be sold in 14
logistics is the holy grail of the industry fanning positive business sentiments. foreign markets. Walmart procures over
which will only push further the The deal will be subject to tax in India 95 percent of the goods.
52 Events
I
SPF organised it's another series stress on concentrating on sleep science they confidently guide the consumer on
of Retail Training Program Helping to motivate the customers. the aforesaid three significant points,
Consumers Sleep Better on 18th June which are one of the important pillars
2019 at Hotel Marriott, Tank Bund Around 70 dealers participated of a sales pitch that support to get the
Road, Hyderabad. from different brands with vigor and deal closed.” Says Mr. S. Sundaresan,
enthusiasm. The interactive modules Secretary ISPF.
The professional trainers from and role plays of this training session
Global Talent Track Pvt Ltd were ISPF’s were appreciated by Retailers as it kept He also explained how to advise
Training Partners for this thoughtfully them involved, promoted the team spirit a customer for choosing the correct
crafted seminar on “Selling Sleep before and also offered a practical learning mattress to get a “Quality Sleep”. This
selling a mattress”. experience. was further elaborated by him with
an explanation on offering the right
Mr. Purshottam Malani, Managing “While introducing and presenting any mattress to the right customer based
Director - Centuary Fiber Plates Pvt product, especially the premium ones, we on customer needs for helping them to
Ltd. inaugurated the function. In his advise our Retail Partners to focus on three sleep better.
opening address, he advised the essential aspects of product presentation
dealers to focus more on the needs of to consumers: Product Features, Product The Highlights under the workshop
the customer rather than pushing to Advantages and Product Benefits. Helping Consumers Sleep better were
liquidate the stocks. He also pointed the Important Principles of a 360 degree
out the emerging trend of e-commerce It is a must that the dealer should have Product Knowledge based on Consumer
and cautioned them to impress the a thorough knowledge and understanding Preference that promises an enhanced
customers with the various features of about the products specifications and level Consumer buying experience and
the available products. There was also its benefits for the consumers so that Consumer Satisfaction
54 Events
Deprived Sleep
It is said that sleep deprivation Water and Sleep
can kill you more quickly than food
deprivation. Studies have revealed A glass of water
that even the most intelligent people before sleep can
lack clarity and are more aggressive • Avoid
when denied sleep. They become Sleep Pattern Impacts knuckle and
willing to give up anything to get that While a good sleep yields good knee cramps
sleep they lacked. Adequate sleep health, some sleep patterns can • Improve
on the other hand contributes to a sadly give rise to health issues. Some digestion
healthy life. of them include, excessive daytime • Regulates
sleep that can result in constant blood
drowsiness; sleeping immediately pressure
after eating causes obesity; sleeping • Helps
on the same side can cause back in easy
pain problems and sleeping without excretion
resting the leg completely can cause • Prevents
leg pains. strokes
and distribution, 4 overseas subsidiaries in Middle East, Europe, USA and Singapore provide a close
Jiahua Chemicals offers an outstanding range of PURANOL POLYETHER POLYOLS that can be used in many
manufacturing applications. Such as flexible foam for furniture, mattress and automobile industries. We
also offer an extensive range of PURANOL POLYMERIC POLYOLS with a variety of solid content.
Address: Room 1201, Building 5, No. 258, Jinkang Road, Pudong New District, Shanghai, China, 200127
Phone: +86 21 20670888
Fax: +86 21 50125277
Email: sales@jiahua-china.com
Website: www.jiahua-china.com
60 Opinion
Everyone dies. Not everyone lives. She truly represented people with
For Mrs. Sheela Gautam, however, the nothing else but the unadulterated
epitaph is different. She lived since intent to serve without any expectations.
the day she was born in 1931. As the The infrastructure development and
daughter of a freedom fighter who was industrial growth that happened during
in and out of Jail, she tasted the pride her leadership echo the passion that she
of being a patriot from a very early age. carried for the country and its progress.
The spirit of serving the country only
blossomed further as her life took new Speaking of which, she always
courses. held the role of women high in the
building of a nation. She ran an all-
She studied in Lucknow and girls’ school education close to 800
married an Army Officer in 1951. But children. She was way ahead of her
as fate would have its way, she lost her time and quintessentially progressive
husband in 1969 at the age of 38. With and strongly believed in equal women
the arduous goal and responsibility of contribution. She always encouraged
bringing up two children; and fuelled Mrs. Sheela Gautam women and men to rise well above
with a deep desire to contribute to the 15th Nov. 1931 - 8th Jun. 2019 age-old practices of confinement post
industry and society in a radical way, widow-hood. Her example and support
she stepped into the world of business. helped numerous women to understand
By the time she was 40, she marched the value of work in achieving financial
forth with a License for PU Foam and a independence.
dream to build something bigger than Mr. Rahul Gautam,
her challenges. Interestingly, she always balanced
her son defines her, her life’s role with intense focus,
With frugality instilled since
childhood, and with some impeccable as an epitome of management skills and restriction of
non-value activities.
values of hard-work, discipline and
integrity to complement her goals, she
Integrity and Grit. Her Son, Mr. Rahul Gautam, defines
moved from one pebble to another, her, as an epitome of Integrity and Grit.
until she added feathers upon feathers Diligence and Morality form the legacy
with Sheela Foam’s ascent and note the perseverance and clarity of that she passed on in continuing ace
accomplishments. thought that she always carried, from leadership and entrepreneurship into
day one to the last day she worked. the future.
Soon, and evidently, she made it a
name to reckon with in the market with Her passion for serving the country Her memories and stories will keep
not only a notable market share but also did not stop at the pursuit of giving pushing many leaders, women and
an impeccable streak of great customer people health and comfort. Equipped entrepreneurs on the road to excellence.
service and innovation. with her father’s spirit from the days of She taught us how to think, feel and live.
freedom movement and nation-building,
Anyone who looks back at this she embarked on a different leadership As a woman who changed many lives
distinctive journey, does not miss to role next. Not a surprise then that she and truly lived hers, she lives on.
62 Back of the book
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