When’s the last time you thought about your mattress? Probably when you were out looking to buy one. There are products like that. We are in the market for a new one so rarely that we forget they are a commodity. It turns out, mattress manufacturers are getting hit hard by the slowdown in real estate transactions.
It’s pretty common to hear about the effects of home sales on the home improvement industry. New buyers put around eighty percent of their upgrades into a new home within the first six months of ownership. No moves means no dissatisfaction with the status quo, which means far fewer trips to Menards, Home Depot, and Lowes.
As with many things, it’s a combinations of factors hitting the mattress makers. More and more buyers are purchasing on-line. Victoria Freeman at the Manhattan Institute (MI) writes:
Brick-and-mortar storefronts are suffering the most because mattress demand has recently shifted toward online sales. As shown below, the ‘mattress-in-a-box’ model has risen in popularity – while only 27% of consumers would purchase a mattress online in 2016, 47% would do so in 2020. Younger consumers, who tend to prefer online shopping, are driving this change.
A change of shopping venue has given an edge to those who ship and are able to undercut price.
In particular, Chinese exporters often sell through Amazon rather than setting up a U.S. storefront because it minimizes the length of the supply chain, cutting costs. On Amazon, a Queen size mattress from China can thus sell for less than $175 – a marked bargain compared to the average price of around $1,000. The consequence of consumers’ savings on mattresses, though, is that domestic mattress producers are losing market share and hence cutting jobs.
As someone who is often frustrated at not being able to touch and feel before I purchase, I wonder how this will go. If a mattress simply shows up at your home, will the consumer get what they want, or will the mattress be too firm or too soft? And what’s the deal with those inflatable or rather expandable mattresses? Do they really hold their shape long term?
Mostly it’s interesting to note the instigator of a shifting mattress market is the real estate sales slowdown. Markets are unpredictable, spontaneous, and fun to follow.
Home Economics 