Table Of Contents

Executive Summary

The Mattress Market In India

Key Players: Traditional Versus New-Age Companies

Business Opportunity In Indian Mattress Market By 2022

Key Drivers For Online Purchase Decision Making

Competitive Landscape: Indian Mattress Startups

Select Investors Backing D2C Brands

Key Industry Trends

Methodology

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Executive Summary

$2.5 Bn 38% Wakefit

Market Opportunity Of The Total Market Opportunity Has The Most Favourable
By 2022 Is In The Branded Mattress Space Customer Perception Among
Online Mattress Shoppers

Product Quality Price 64%

The Critical Trigger That Determines Not a Significant Factor Surge In Market Size
Online Mattress Shopping In India Among Online Mattress Buyers Of Branded Mattresses
In India Between 2018 And 2022

80% 54% PU Foam

Of Mattress Sales In India Are B2C Online Shoppers In India Have An Mattresses Account For Nearly 50% Of
Transactions Annual Household Income Above The Total Market Share
INR 3 Lakh In India

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The Mattress Market In India An Overview
For years, mattresses were nothing more than everyday household furnishing items, utility goods we could not do without. However, that perception and the
nature of products are changing at a fast clip. The Indian market is currently dominated by small and unorganised players that offer a wide range of coir, cotton,
and foam products. But it is not a sleeping industry by any means.

The Indian mattress market, valued at $1.7 Bn in 2018, is poised to touch $2.5 Bn in 2022, according to a Redseer report. The share of unbranded products stood
at $570 Mn in 2018 but is estimated to grow by 64% to touch $937 Mn. Globally, the market size may reach $40.4 Bn by 2027, from $30.4 Bn in 2019, growing at a
CAGR of 4.2%, according to a Fortune Business Insights report published in November 2020.

In the past few years, the industry has witnessed a rising demand for disruptive and premium products in this space, and a dozen startups/D2C brands are
catering to the changing consumer requirements. A rise in disposable income, a subsequent change in lifestyle and the rising number of household units as
nuclear families tend to outnumber multigenerational households have triggered the market growth across the country. But premium bedding is no longer an
aspirational product like luxury home decor items.

With the change in lifestyle, people are now focussing more on their health, and there is better awareness among consumers about how sleep deprivation and
incorrect body postures often result in critical health issues. Better still, the new-age players in the mattress market are also taking initiatives to educate their
customers about the materials used and the health benefits of each mattress type. As a result, both 'smart' mattresses with sensors and other premium
categories are fast becoming essential household items. In recent years, India has also seen an increased demand for custom solutions.

Finally, there is another growth driver. In a post-pandemic world, most companies do their business digitally, and consumers surf online sales channels to buy
and get hassle-free doorstep delivery.

Together, these factors will further boost the Indian mattress market. Also, new-age startups are likely to capture a bigger market share as they develop
disruptive (and tech-enabled) products and continue to build consumer awareness.

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Key Players: Traditional Versus
New-Age Companies

Traditional Players New-Age Players

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 $2.5 Bn Opportunity In Indian Mattress Market By 2022

$2.5 Bn The mattress market in India is growing at a

compound annual growth rate of 10% (2018-2022)
2.50 +47%
and is likely to cross $2.5 Bn by 2022.
0.94

2.00 $1.7 Bn
Over the next five years, the branded mattress
market is estimated to grow at a CAGR of 13%
Market Size (In $Bn)

1.50 0.57 compared to the 8.5% growth rate of the

unbranded market. The share of the branded
1.56
mattress market will grow from 34% in 2018 to 38% in
1.00 2022.
1.13

0.50 Billing formalisation in the unorganised sector due

to GST implementation has reduced the price gap
between branded and unbranded products. In the
0.00 B2C space, the growing popularity of online
2018 2022 shopping will further boost the sales of branded
products over non-branded ones.
Branded Unbranded

Source: Redseer

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Branded Mattress Market Branded Mattress Market
Split By Type Split By Price

Rubberised Coir PU Foam Luxury(>INR75K)

47
20% 50% 5%
187 Mid
(8K to 30K)
Premium 187
(30K TO 75K)
50%

$937 Mn 469
20%
$937 Mn
(2022) (2022)
469

281 Economy 234

(<INR 8K)
Spring Mattress
25%
30%

Source: Redseer
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Quality And Comfort Triumph Over Price For Online Mattress
Shoppers In India

Unbranded mattresses cater to maximum

market demand (around 63%) in India, given their
Product Quality 9.4 price advantage over the branded counterparts.
For online shoppers, price is not a decisive factor
when it comes to purchasing decisions

Overall Comfort 6.6

Low price sensitivity among online shoppers can

be ascertained as 54% of them have an annual
Price 4.1
household income above INR 3 Lakh. Out of this,
33% have a yearly household income above INR 6
Lakh, which equals a gross monthly income of INR
Back Comfort 3.01
50K.

Another positive market indicator for branded

Customer Support 2.1
mattress manufacturers is that its market size in
India is growing at a CAGR of 13% (2018-2022)
0 2 4 6 compared to the 8.5% CAGR of unbranded
8 10
products.
Category Delighter’s Score(0 to 10)
Source: Clootrack, Inc42 Plus
n= 2,296 reviews
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Wakefit’s Product Quality Perceived As The Best Among Indian
Online Shoppers

Wakefit emerged as the leader due to favourable

customer perception regarding its product
Wakefit 9.5 quality. However, some negative sentiments
relate to back pain when it comes to its
orthopaedic product line.
Sleepyhead 7.9
As quality is the key delighter that impacts the
purchasing decisions of online Indian shoppers,
SleepyCat 5.8 companies in this space should ensure that it
remains at the core of their business strategy.
Besides, the online presence of traditional players
Morning Owl 4.7 is not very significant in the B2C space. This gives
the new-age players a much-required
competitive edge.
Flow Mattress 1.4
The B2C segment accounts for nearly 80% of the
total mattress market in India, making it the most
0 2 4 6 8 10
lucrative customer segment in this space.
Product Quality Score(0 to 10)
Source: Clootrack
Note: The product quality score is provided by our data partner Clootrack after analysing 2,296 customer reviews on
Amazon, Flipkart, Twitter and Trustpilot.
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Competitive Landscape: Indian Mattress Startups
Launched In Funding Raised FY20 Revenue Key SKUs Offered

2016 $34 Mn $27 Mn Beds, Mattresses, Bedding, Pillows, Tables

2017 $1.4 Mn $2.3 Mn Beds, Mattresses, Bedding, Pillows

2014 N/A N/A Mattresses, Pillows And Accessories

2017 N/A $2.9 Mn Mattresses, Accessories And Beds

2018 N/A N/A Mattresses, Pillows And Covers

2018 N/A N/A Mattresses, Accessories And Beds

2015 $300K N/A Mattresses And Accessories

Source: Multiple Secondary Sources and MCA

Note: INR to USD conversion is 73.4
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Notable Investors Backing D2C Brands In India

Ratan Tata

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 1
Key Industry Trends

A Rise In Demand Due To Demographic Change, Surge In Housing Units

India has a young workforce that believes in quality and convenience. They no longer make a ‘grudge purchase’ from local shops
due to better product awareness. Traditional mattresses are changing fast as companies now use a diverse range of materials such
as latex and memory foam and also develop tech-enabled ‘smart’ mattresses to cater to the increasing number of well-informed
consumers. Add to that the growing number of households as affordable housing projects gather momentum, and developers offer
deep incentives to clear their inventories. Nuclear families are also rising as young people migrate more frequently for work and set
up their establishments across cities. By FY25, urbanisation in India is likely to reach 40%, with nearly 75% of households moving to a

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nuclear setup. Together, these factors will result in greater demand for high-quality ‘sleep’ products.

Awareness Initiatives Trigger Traction

Traditionally, a mattress was purchased to last a lifetime as most people were not aware that their bedding would not work well after
a few years. But people are now more aware of wellness and personal health, and the demand for better sleep solutions grows as
many sleep-related disorders and ‘bad posture’ issues arise from choosing the wrong mattress. Better still, mattress startups in India
are proactive in raising consumer consciousness and help them understand how good sleeping conditions lead to good health. For
instance, Wakefit, a leading D2C brand in this space, publishes its annual study called the Great Indian Sleep Scorecard (GISS) that
explores sleep patterns and related issues, and consumers are gaining from these insights. In an all-new approach, it is also offering
paid sleep internships for 100 nights to garner actionable insights regarding better and longer sleep.

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 Customisation, Tech-Enabled Products Gain In Popularity

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Mattress startups like The Sleep Company and Sunday are already using tech solutions to help their customers get a good night’s
rest. The former offers a ‘smart’ product that adapts itself to one’s body shape and the latter provides customised products based
on age, height, weight and location. Other players also focus on customised products, as one-third of Indian consumers opt for
customised mattresses, involving body conditions, materials and layers used, design, colour and dimension. Consequently,

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contract manufacturing in this sector is growing.

Startups Focus On Building Trust, Convenience

Free trials for an extended period, moneyback guarantees and warranties from companies help build trust among consumers
who are buying newly evolved mattresses online. Besides, most of these companies sell their products online or through hybrid
channels, making it convenient for customers to buy with a few clicks. Online sales are growing exponentially in a post-pandemic
world, and both buyers and sellers are leveraging it.

5
Growth On The Cards

Given the wellness obsession of consumers at large and the latest direct-to-consumer (D2C) rush in India that helps brands reach
customers without hassles, the fast-evolving branded mattress segment has vast growth potential. The rise in demand for
customised and tech-powered solutions, risk-free trials and warranties will further reduce the lure of the low-priced unorganised
sector. At the same time, new-age startups will continue to disrupt the traditional players and give them a run for their money.

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Methodology
The customer perception analysis in this report is provided by our data partner Clootrack — the first-of-its-kind platform that discovers and
measures brand perception metrics that matter. Clootrack does this with proprietary deep learning and AI algorithms based on proven
mathematical models.

The insights in this report are based on the analyses of 2,296 online customer reviews posted on websites such as Amazon, Flipkart, Twitter
and Trustpilot.

Number Of Reviews By Source Number Of Reviews By Brand

Wakefit 757
Amazon 1,221
Sleepyhead 656
Flipkart 834
Sleepycat 572
Twitter 174
Flo Mattress 202
Trustpilot 66
Morning Owl 68

Wink & Nod 26

Hush 11

Urben Bed 3

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