The hot summer that keeps us awake is now coming to an end. For humans, sufficient sleep is essential for optimal physical activity and brain activity when awake.
The bed, which is the most private and private space, is why, if you want to buy one, try to buy a product that will add to the interior even if it is expensive. Because of this, it is one of the markets where the price follows this immeasurable desire like a market price.Have you ever heard of Netflix drama Emily in Paris, Blackpink’s Jenny’s bed brand? It’s not the company that’s the main character today, but it’s a brand called Hastens , founded by Pehr Adolf Janson in Sweden in 1852 , and the price is huge. It is a bed company that sells models priced at 316,000 dollars and the highest published price of 400 million won, using only natural materials and handmade by craftsmen 171 years ago. Hestens means horse, and it is a family business that started manufacturing beds by bringing the technology used to make and supply horse saddles in modern EuropeNot only that. The so-called four luxury beds : Hypnos , which has been certified by the British royal family for over 100 years, Vispring, and Duxiana , which Steven Spielberg bought 25 of them because the bed material and softness can be customized for each lying position . exists. However, when examining the bed mattress market, there are common features. It is also a market like a marketing playground where you can inflate the price the more you add various types of elements such as other excuses, heritage, and ‘science and technology’ to advertisements, even if they are not expensive products that have become luxury goods.
A bed is a product that touches the fundamental desires of mankind. If you go back to the etymology of bed , it happens to be something similar to the Proto-Germanic word badja- , which means ‘a shelter made by digging the ground’. Even the sultan who traveled all over Europe slept on a cushion on a rug at most, but with the development of industry and manufacturing technology, even the sleeping place gradually became higher.
Among them, a representative example of a bed showing a different status from others is Louis XIV, the Sun King of France. It is said that they used a bed that was raised to the ceiling so that you could not see inside well from the outside.
However, if there were only beds that were supplied only to the royal family, it would not have grown so big that private equity funds jumped in. The decisive factor in the change of the bed mattress industry is the development of cities.
Beds, which were considered luxury, face inevitable hygiene problems as large cities become more sophisticated and population density increases. Just like the small bed in the ‘Bedroom at Arles’, painted by Van Gogh while waiting for Gauguin, an absolute resting place of my own is needed even in a corner of the room. .
Buy America, which is unfamiliar to us, but takes a look at sparkling companies in the New York stock market, the bed mattress market, which is an industry responsible for the night of mankind today, the royal family, and a playground for marketing experts who borrowed the power of science, and the world’s largest bed company among listed companies. This is the story of In Tempersilly International (ticker name: TPX ).
Those of you who have memories of the 90s will know. It’s obviously furniture, but it’s an advertisement that says ‘bed is science’. The lines of Park Sang-won, who later plays an active part in the drama ‘Hourglass Prosecutor’, are said to have been an advertisement made with an eye to the demand for replacements suffering from back pain because the original targeting of newlyweds, the biggest customer, was too fierce. This line became so popular that people of all ages and genders remembered it, and since then, the market share has more than doubled, and it is still number one in Korea.
For reference, the domestic bed market is like an oligopoly, and the second son of the founder of Ace Beds took over the share of the Simmons bed license partnership in the United States, and the two Ace-Simons hold about 40% of the domestic market without wavering.
However, the reason why this ranking has not changed for 30 years is the same in the home country, the United States. This is because there is no significant change in the share of the Tempersily-Serta Simmons composition. Since the 2010s, online mattress companies such as Zinus in Korea and Casper in the US have settled down and gained market share by supplying products that are cheap and convenient to ship, but the market leaders are still existing mattress companies with a history of more than 100 years and a large capacity to mobilize cash.
Basically, you buy a mattress after you lie down on it. However, since each offline retailer sets a different discount rate, consumers do not know what the regular price is. After the discount rate, the price has been greatly raised, so that a tolerable mattress is now sold even in Korea, even for hundreds of thousands of won, even over 10 million won. Even in the United States, discounts on frames are taken for granted, but not many consumers are aware that the cost has been slightly raised every year in this process.
According to the business report (10-K) submitted by Temper Seely International, the world’s largest company, at the beginning of this year, the gross margin rate is maintaining about 40% or more. Among the companies in the world, Apple, which is good at business, is about 60%, and Tesla is around 20%. However, due to inventory, furniture companies that should have a lower number are making records equal to this. This can be said to be a good business, but it also means that the discount range is set in advance and the price is set high.
Bed mattress companies also conduct research and development, but basically nothing has changed significantly other than using a patent to support coils by mixing metals such as coil springs and titanium, or managing fiber materials that come into direct contact with human skin and uniform quality. doesn’t exist. Due to these pitfalls, the mattress market is also an industry in which open market share data are rare, and the overall market size grows tediously by 5-6% every year.
Tempur , the name of NASA’s patent for spacecraft shock absorption, is no different. A Swedish businessman took a license and produced it in Europe, and later, Bobby Trussell, who is now retired, took over the business rights around the world, including the United States.
Tempurpedic, which was created in this way, acquired Sealy, an American mattress manufacturer in 2013, and occupied the market with Serta-Simons in first and second place. Sealy, the original mattress company, was born in 1881 in Chicago, where the largest cotton farm in the United States was located. Since Simmons was born in 1870, it can be said that the mattress market in the United States was born at the same time and has grown its dominance through mergers and acquisitions in each region.
In any case, mattress companies used to maintain their margins with an invisible price increase strategy without large investments, but they suffered a huge crisis last year.
After the outbreak of the Russia-Ukraine war, the supply chain collapsed, and oil prices began to cross the 100-dollar mark per barrel. The cost of distribution of large mattresses naturally increases. In addition, as iron ore and raw material prices doubled over the same period, the profitability of bed mattress companies would be greatly affected.Because of this, the second largest Sulta-Simons bed in the US was driven to the brink of bankruptcy earlier this year, filed for Chapter 11 bankruptcy protection, and then revived, and a company called US mattress firm was sold to Temper Sealy for about $1.3 billion due to financial difficulties. .
Investors need to pay attention to the No. 1 company that survived this chaos. Consumer Reports surveyed consumer satisfaction with mattresses in the United States, and Tempurpedic ranked first. Unlike spring mattresses based on discounts, it can be said that it served as a driving force for survival while maintaining high and fixed prices and transferring the burden of raw materials as it is.
And while most mattress companies have turned unlisted, Temposily International continues to pay dividends, spends the remaining money on mergers and acquisitions such as Dreams and Mattress Firm in the UK, and supplies 80% of hotels including OEM licenses and Marriott Group affiliates . It has a relatively stable business model. Until last year, it was hit by a decrease in hotel deliveries and a deterioration in the supply chain due to the pandemic, but it is also showing a recovery in performance faster than other competitors.
Tempur-Seally International is a decent small-to-mid-cap stock that has risen by 34% this year alone and by more than 220% in the past five years, and even receives dividends. The outlook of Wall Street analysts continues to predict that, on average, outperform and more than market returns can be expected. Hold’s opinion increased in August, but the current share price is below the analyst average target price of $50 per share.
Of course, no company is as good as it is. It’s because the days of inflating profits with discounts are passing. Like most retail markets, buying a bed in the US is going digital. It is worth considering that the response to low-cost online competitors토토사이트such as Purple.com and Casper is still slow.
And it’s limited to Korea. It is also worth pointing out that after radon was detected in Daejin bed in 2018, Sealy was pointed out as the second hitter, and thereafter, it was difficult to restore trust, such as fully disclosing the domestic factory. Even though there is no damage in the United States because it is produced by consignment in each region, it is also at the point where you have to check whether it is a reliable company for a long time.
It’s kind of nasty for consumers who don’t have a decent alternative to have a limited company gradually monopolize, old screw technology, or great music and models to raise prices. We look carefully at the mattress market, where you can lie down at a reasonable price, even if you don’t necessarily boast space-level technology.