Those days are gone where you have to flop on to various mattresses in showroom floor. Online companies selling mattresses tell you that finding the correct bed can be just a few clicks away. However, the experts warn to look carefully beneath sheets as it is very important. They say that many mattresses which are sold are very similar except how these are marketed.
Seth Bashan who is an analyst in Wedbush Securities said that there most of the mattresses are almost similar with only a very few differences in the product. He added that different companies use almost the same foam for the core of mattress. The layering can be different but the main difference is the way they are marketed and sold.
As estimated by Michael Magnuson, founder of GoodBed.com, there are around 175 companies in this business. According to him, the sale of their company is around 12% of $16.5 billion industry of mattress. Major players in mattress industry are Casper, Purple, Nectar, tuft & Needle and Leesa. According to the survey done by International Sleep Products Association, online purchase of mattress went up from 35% in 2017 to 45% last year.
The only public company after merging in the year 2018 with public investment Shell Company at $1.1 billion of valuation is purple. After the merger, the stock of the company dropped by 40% and now its value is $355 million. As per Basham, purple along with the many other companies has not seen profit yet.
As per Bashman, it is hard to earn the profit as many companies are operating online making it highly competitive for the companies operating offline. According to him, profit is high and to enter this market barriers are low. It does not take too much time for designing the mattress and putting the ads on website.