Online Mattress Brands See Huge Growth in 2018

DTC mattress brands continue to take a bite out of the mattress market. Read here who were the big winners in 2018 and what observers can expect in the future.

By Andrea Pisani Babich

The numbers are in and the news is good for direct to consumer (DTC) mattress brands. According to Furniture Today, the Top 15 online mattress retailers saw a 41% increase in their total sales in 2018. Here are the big winners from last year.

  • Amazon bumped Casper off the top spot in 2018 by launching their own mattress brand, AmazonBasics Memory Foam. Sales of this new entrant in the mattress marketplace increased Amazon’s mattress revenue 50% to reach $900 million. Adding this figure to Amazon’s sales of other mattress brands is estimated to put Amazon’s total mattress sales over one billion dollars.
  • Nectar saw the most growth of the Top 15, posting a whopping 468% increase in sales. That brought their revenue to $250 million for 2018.
  • Layla sales of their two-sided, flippable mattress reached $40 million – a 100% increase in revenues over 2017.

Honorable mentions go to Brentwood Home, Purple, and Wayfair which all increased their sales by over 50%.

Leesa was the only digital native brand that showed no increase in sales in 2018 but maintained their place among the Top 15 by virtue of their relatively strong showing in 2017.

While 2018 was a banner year for online mattress brands, it was less kind to traditional mattress retailers. In comparison, the Top 25 traditional mattress retailers posted a total sales increase of just 2.1% in 2018, far below the growth of their online competitors. The top seller on that list remains Mattress Firm in spite of a 4.1% decline in sales, their filing for Chapter 11 reorganization, and their closing more than 700 stores.

The impressive increases among digital native mattress companies plus the weak growth in sales by traditional retailers has helped the newcomers take a bite out of a market still dominated the traditional big guns. While consumers overwhelmingly continue to buy their mattresses from conventional mattress retailers, last year’s numbers reflect a steady and substantial rise in consumer comfort with online mattress shopping. Industry analysts anticipate that trend will continue.

Disruptions in the Mattress Industry

What is driving the growth in the digital mattress market? A number of factors favor continuing growth in DTC mattress sales:

  • Millennials (aged 23 to 38 in 2019) are replacing mattresses more frequently than the previous generation and are intrepid about making their purchases online. In fact, millennials do 60% of their shopping online. When they need a new mattress, chances are they’ll be shopping for it in the digital marketplace. Similarly, as Gen Zers, currently aged 9 to 23, mature, they will likely eschew shopping in mattress showrooms and shop in their favorite shopping mall – the Internet.
  • Consumers are becoming more aware and more accepting of alternatives to brick and mortar mattress stores. Casper has only been around since 2014, and their sales reached $360 million in 2018. Online mattress sales exploded in 2015 and 2016 as more mattress start-ups entered the burgeoning field, reflecting shoppers’ considerable interest in finding a new way to buy mattresses.
  • Digital native mattress companies are expanding their reach offline by growing their physical presence. More and more DTC mattress companies are reaching customers through partnerships with traditional home furnishing stores and/or opening their own brick and mortar shops where shoppers can lie down on their favorite mattresses before clicking “buy” either in the store or back home on their laptops.

What’s Next?

The next year promises to bring more disruption to the mattress industry and more growth for mattress e-tailers. Native online brands will reach more shoppers reluctant to buy mattresses without a physical test rest by displaying their mattresses in physical spaces.

Brands will continue to find innovative ways to market their mattresses through social media. And consumers will continue to prioritize quality sleep – and the role a mattress plays in it – as overall wellness captures the attention of consumers increasingly yearning for better living.


Sources
  • Furniture Today: furnituretoday.com/mattress-bedding-news/top-15-bedding-e-tailers-post-41-increase/
  • Furniture Today: furnituretoday.com/furniture-retailing/mattress-firm-endures-holding-top-spot-among-bedding-retailers/
  • National Center for Business Journalism: businessjournalism.org/2017/03/covering-ecommerce-trends-online-mattress-retailers/ 
  • Digital Commerce 360: digitalcommerce360.com/2019/03/26/millennials-online-shopping/

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