Retail Observer

RETAILOBSERVER.COM SEPTEMBER 2015 52 T he promise of a good night's sleep has been the backbone of the mattress industry for decades. In 2014 alone, the mattress industry crested 8 billion dollars. Customer spending is at an all-time high, and with that comes the promise of higher ROI for the independent retailer. In today's marketplace, the old staples of coil count and comfort feel are being replaced by new polymers and fabrics, and even solid medical data. In the last decade, the amount of categories offered by mattress manufacturers have exploded, giving consumers and retailers, a much better and broader selection of products to choose from. To an independent retailer, this provides the opportunity of new customers, new products, and retention of current customer base. At the same time, they have new challenges to overcome such as; which models to inventory, new product to learn and train on, and the ability to articulate these to their customers. Traditionally, retailers have been faced with a choice: Traditional Inner Spring or Specialty. The later could encompass anything from gel, memory foam, latex, even air chamber beds. Then came the idea to take the best of each; comfort & support, energy giveback (responsiveness) and heat transference, then incorporate them into one mattress. This approach also takes the favorable aspects of foam, gel or latex and by introducing inner springs, often negates the downsides typically found in mattresses made predominately of these materials. The beauty of the Hybrid Mattress design is that the concept follows a minimalist approach, delivering a few very specific ingredients that provide the initial "comfort layer", with a base or supportive layer to provide the underlying support that is required to make the key ingredient above as comfortable as possible. The design is made competitive by a number of factors: the amount of layers added, types of materials used, and even the types and styles of coil. Each manufacturer has their own recipe on how to "bake this cake", but in the end, it comes down to comfort, support and differentiation. With regard to market share, inner spring still constitutes the bulk of all mattresses purchased, at least according to 2014 data. Specialty categories have been growing, but many customers are hesitant to go directly from an inner spring mattress to a specialty type. Savvy independent retailers are investing in this new category, and for good reason. In the past year, the major bedding manufacturers in the United States have been spending big dollars developing, engineering and marketing this new category of mattress. At first it was met with skepticism, but with record numbers of units produced, and the momentum it's building, they're here to stay. With the introduction of Tempurpedic's 'Flex' line, the industry has seen deliverables from each of the major 'S' vendors including Serta's 'I-Series,' Sealy's 'Posturpedic Hybrid,' and Simmons 'Beautyrest Recharge Hybrid.' What's interesting here is the amount of development each of these manufacturers is investing to this new category: Each running their own testing, creating their own branded value and continuing to add new product to the pipeline. The innovation race is on, and in this instance, it's made of composites, coils and polymers. Another exciting opportunity lies in Millennials. There has been much discussion about the buying patterns and opportunities of this demographic, and among major vendors, Hybrids are no exception. Many Millennials resonate with the brand message that major U.S. manufacturers deliver. They've been bombarded with the message and the promise of a good night's sleep. However, market research has shown that among core demographics, Millennials have some of the highest purchase rates for the hybrid category. With today's marketplace offering customized feels, finishes, Millennials are searching for something unique, and it's clear that they've found it in the Hybrid category. As this category continues to grow, it's being supported with national advertising that focuses not only on brand building, but on co-marketing as well. The successful retailers in today's market are having the discussions with their manufacturers about hybrids, and what type of floor footprint they can design. If the first half numbers of 2015 are any indication, look for this category to continue to impress both customers and margins. Nate Puplis Furniture Trends Nate Puplis is the MEGA Group USA field market manager for WA, OR, MT, WY and ID. HYBRID MATTRESS SALES SIZZLE RO

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