In the competitive bedding industry led by ACE BED and Simmons, Sealy Mattress, Shinsegae Casa, and Coway are increasingly throwing down the gauntlet. There are prospects for change in the bedding industry, which has been controlled by the late founder of ACE BED, Ahn Yoo-soo's eldest and second sons. The market share of ACE BED and Simmons is around 40-50% when combined. This means that a single family has effectively established an oligopoly in the mattress market.
According to the distribution industry on the 18th, Sealy Korea will start construction of a new production base in Yeoju, aiming for completion next year. Once the production base in Yeoju is completed, Sealy Korea explains that production capacity will increase by nearly 40%. Sealy Korea has invested about 40 billion won in this project. With the domestic premium mattress market beginning to open up in earnest, it aims to seize this market. Quality control is also expected to become easier. A Sealy Korea official noted, "Construction will begin in June this year."
Furniture companies, interior design firms, and rental companies are also jumping into the expanding mattress market. Shinsegae Casa is trying to grow with the sleep specialty brand Materasso. Materasso is a brand that Shinsegae Casa introduced after overhauling its mattress lineup in 2021. In July 2023, it expanded from a mattress brand to a "sleep specialty brand." According to Shinsegae Casa, Materasso's sales increased by about 30% compared to the previous year just one year after the brand's expansion. This year, the plan is to open about 30 specialty stores.
Coway has launched a market strategy with its sleep brand Virex. Products under the Virex brand range from recliners to smart mattresses. The brand is centered around keywords like rest and healing. Coway is accelerating the expansion of Virex's offline stores so that customers can directly experience the products. This month, offline stores will open in Daegu, Gimhae, and Wonju. This decision is based on the assessment that Virex's growth has been rapid. After the launch of Virex, Coway's rental accounts increased from 9.1 million in 2022 to 10.9 million by the end of last year. Annual sales also surpassed 4 trillion won for the first time.
As competition heats up in the domestic premium mattress market, some are looking for opportunities in overseas markets. Hyundai Department Store Group's ZINUS is a prime example. ZINUS is an affiliate that Jang Ji-seon, chairman of Hyundai Department Store Group, acquired in March 2022 with an investment of 879 billion won. While 80% of its total sales are made in the United States, it is recently expanding into regions such as China, Europe, and Mexico.
However, opinions are divided on whether the duopoly in the mattress market will be broken. This is because ACE BED and Simmons have long dominated the market. A representative from the bedding industry stated, "Since 10 years ago, latecomers have shown ambitions to break the duopoly, but it has not been easy," adding, "Even if the premium market expands, ACE BED and Simmons will likely remain strong."
On the other hand, another bedding industry representative noted, "The absence of the founder has changed the competitive atmosphere between ACE BED and Simmons. The changing consumer patterns will also provide ample opportunities for latecomers," adding, "It will be interesting to watch this great war."