The bed industry is raising or considering raising prices. The move is due to higher raw material costs and a weak won from a strong dollar. The expansion of bed rentals has also had an impact.
According to industry sources on the 4th, Simmons is reviewing a price increase for bed mattresses, citing higher costs for raw and subsidiary materials, labor, and logistics. If Simmons raises bed mattress prices, it would be the first increase in a little over two years since Jan. 2024. A Simmons official said the company is conducting an internal review regarding a price increase and added that nothing has been finalized on whether to raise prices, nor on the timing or magnitude. In Dec. last year, U.S.-based Sealy raised product prices by an average of 7.7% for the first time in two years. In Aug. last year, Iloom, the home furniture brand of Fursys Group, also raised prices on some items such as beds by an average of 6% for the first time in about a year. In addition, Hyundai LIVART, IKEA Korea, ZINUS, and Geumseong Bed have raised prices, while Tempur, Enex, and Emons are internally discussing whether to raise prices.
In this environment, only Ace Bed declared a price freeze on all products. Ace Bed has not implemented any additional increases since raising prices in Dec. 2022. If the freeze continues through this year, prices will have been maintained for four consecutive years. An Ace Bed official said the company believes that curbing indiscriminate price hikes and upholding price guidelines in the market is one of the social responsibilities that a leading company should fulfill.
Sales growth at major bed makers is slowing. Simmons posted 329.5 billion won in sales in 2024, up 5% from 313.8 billion won a year earlier. However, that marks a slowdown compared with a 9.8% increase from 285.8 billion won in 2022 to 2023. Simmons recorded 52.7 billion won in operating profit in 2024, steadily rising from 11.8 billion won in 2022 and 31.9 billion won in 2023. Ace Bed logged 326.0 billion won in sales in 2024, up 6.3% from 306.4 billion won a year earlier, but below the 346.2 billion won recorded in 2022. Ace Bed's operating profit fell from 65.3 billion won in 2022 to 57.0 billion won in 2023, then rose to 66.2 billion won in 2024. Emons reported sales of 144.9 billion won in 2022, 143.2 billion won in 2023, and 174.3 billion won in 2024.
The bed industry says price increases are influenced by shrinking demand due to fewer dwelling transactions and less population movement, and by the structure of relying on imports for key raw materials such as steel, foam, and lumber, which makes a weak won especially burdensome. With a high share of domestic sales, a stronger dollar translates directly into weaker profitability. Rising labor and logistics costs have also played a role.
An industry official said the recent price hikes are an unavoidable adjustment as cost pressures accumulated over the past two to three years have reached their limit, noting that rising prices for key raw materials such as spring steel and lumber, heavier burdens from imported materials due to the strong dollar, and higher logistics and labor costs have combined to make it difficult for corporations to absorb the expense any longer.
Competition has also intensified as bed rental companies such as Coway have expanded their share in the mattress market. Coway posted 365.4 billion won in bed-related sales last year. Since Coway introduced the mattress rental service in 2011 as the first in the rental industry, more rental companies have entered the market, including SK Magic, Kyowon Wells, and Chungho Nais.
A bed industry official said rental services have a stronger price advantage than conventional bed products, adding that corporations running premium brands see little impact, but companies that handle mid- to low-priced mattresses will see their results hurt as rental services expand.