The mattress industry in Singapore, having gone through a transition from an import-based industry due to the lack of cotton and rubber plantations to manufacturing in the 1960s and 1970s, is currently a healthy one. The annual market size of the mattress industry, including sales of imported mattresses, is estimated at SGD 150 million without taking into account the ancillaries such as bed linen, supporting systems, children’s bedding, and other associated items. The players in the mattress market are Simmons, Serta, Sealy, King Koil, Croc Bedding, and vHive Studio. They are split between two retailing concepts – brands and departmental stores – with the largest shift of recent years being the emergence of home centers as a third major distribution channel.
The mattress industry players in Singapore and the region are interested in this market due to the dynamics in the consumer’s decision-making process. There are underlying factors contributing to the growth potential of the mattress industry in Singapore. Here is some information on the consumer: TYPES OF MATTRESSES SOLD: The spring mattress commands about two-thirds of the sales volume and dollar value, while the rest is made up of all the entrance lines, which include rubberized coir models, foam mattresses, and latex rubber models. Singapore’s market penetration, as measured by the number of units sold per 1,000 people, for the spring mattress is high compared to the established consumer markets. Socio-economic prospects such as a rising population, refurbishment and replacement needs, and increasing per capita income keep the demand momentum for mattresses going. Therefore, whether you are selling gold or offering mattress promotion singapore, different strategies will lead to different price points.
Factors Influencing Mattress Prices
Several factors influence mattress prices in Singapore. Firstly, as mattresses are not durable and permanent, they are a frequent purchase. This makes the demand side very inelastic and the supply side unable to oversupply. This causes a high degree of monopolistic competition among retailers. The cost of production, particularly the import tariffs on necessary trademark materials, also heavily determines price. As a few major manufacturers focus on the bulk of mattress production, strict regulations and producers’ cartels have contorted the supply chain. Brand reputation and consumer perceptions are subjective factors, but they heavily influence margins, pricing strategies, and arrangements. Pricing strategies are often dictated by seasonal sales cycles, as shown clearly through price monitoring. Mattress prices are consistent between brands and only deviate more when product differentiation occurs. The pricing is done by a psychological pricing strategy, often either maximizing price ceilings or using the cost-plus method. The lack of consolidation among mattress retailers limits the options to pursue alternative pricing strategies. Retailers with a high degree of monopoly-like control over a significant portion of the retail market may apply more aggressive pricing strategies combined with massive horizontal integration strategies. The overall pricing strategies are almost observably and uniformly perpetuated in the market. The regulatory bodies should act more assertively to limit price collusion. Retailers should realize that consumers are now well-informed and more specifically urban, young, environmentally conscious people concerned about greenwashing and the overall mattress manufacturing carbon footprints.
Sales Strategies in the Mattress Industry
The strategies used in mattress sales are divided into promotional and multi-sale product-focused tactics. Traditional physical-oriented tactics rely on in-store publicity, such as the best locations, wide entrances, and grand display windows to attract customer traffic. Salespeople commonly use classic customer engagement strategies, such as providing tea or water in the showroom to ensure guest comfort. Engaging shoppers in conversation and helping them understand the differences in mattress comfort and other desired needs is one such strategy. Another tactic is the use of in-store promotions. This strategy is somewhat reliant on the skill of a retail salesperson. There are also successful hard sell strategies applied in bed shops Singapore.
Digital technology offers an online and offline presence, which is particularly advantageous for business operations. E-commerce operations are increasing by the day. Most e-commerce businesses invest a significant portion of their budgets in digital marketing campaigns. Hence, this is a reflection of the increasing influence of digital-related activities on the mattress business. Salespeople are not only influenced by the strategies mentioned earlier. Several companies manage to persuade their shoppers with the availability of multiple mattress financing and installment plans. Lastly, multi-product practices and bundling might lead to varying marketing outcomes. Managers should not just focus on mono-brand specials. Event-based marketing should also include customized possibilities and customer relations. Event-based promotions involve such actions as holiday sales, end-of-year clearance, and end-of-season sales, all of which are typical marketing techniques in buyer behavior. A study revealed how varied buying behavior and marketing strategies could impact products.
4. Case Studies of Successful Sales on Beds in Singapore
A. Technoflex Leasing (S) Pte Ltd Technoflex’s sales grew gradually over this period, with the most success realized in 1993. B. Sealy Singapore Pte Ltd Sealy began its marketing with a more aggressive price promotion, and as the brand became better recognized, it began to engage more in after-sales service and restructuring of the brand. The first aggressive sales began in 1998. In 1998, Sealy launched its advertising throughout Asia. Besides this form of advertising, we also reach out to our customers through different forms of media. Sealy also executed its first-ever catalogue in Singapore in 2003. Always staying ahead of the market, the first local Sealy Showroom was launched in November 2000, located at the exclusive and elite Club Street. A Membership Privilege card program was also launched in 2004 with the Club Street Showroom. Sealy introduced these programs to show the commitment we take in keeping our customers satisfied throughout their period of purchase and to maintain proper care of their mattresses. This is in line with the mission to be “The Preferred Trusted Brand.” The company saw an appreciable increase in sales, and in 1999, it had a total sales revenue of S$4,046,368 resulting from the volume sales of beds with an average price of S$3,115 in the same year. In 2004, sales had reached their peak at S$9,318,372 with an average price of S$3,845, giving them a market share of 23.3%. The increase in customers and sales over the years has indicated that the sales strategies adopted have been effective in leading to high growth in the number of customers and an increase in the firm’s sales revenues. The customers have also been satisfied with the product and service levels offered by the brand. In 1999, the customer satisfaction survey results based on a new sampling by Sealy showed that 42% were extremely satisfied, which has risen to 90% net promoter scores in the year 2004. This shows that implementing sales on beds does not necessarily result in erosion of value.
5. Conclusion and Future Trends
Based on the previous sections, mattress product prices are influenced by the increase in factors of distribution, product, and transaction costs. Retailers who distribute their products through the Internet are likely to charge clients who shop for a mattress lower. Nevertheless, retailers bear higher transaction expenses and, thus, may demand a premium in order to cover these costs. Furthermore, higher-end mattresses that have a greater potential for costly returns are offered on the Internet to a smaller extent than in-store. Lower prices assist retailers in converting as many mattresses as possible back into money, particularly as the deprivation of all “premature arrival” benefits hinders the return of the purchased bed. Mattress prices in Singapore should clearly reflect the right sales tactics that appear to involve lower-priced exchange policies, policies for transporting charge-backs, and increased costs of procurement.
Companies have begun to use machine learning and predictive capabilities to complement their sales output and to offer personalized client tours, solutions, and additional tasks to improve consumers’ emotional and mental well-being. It is likely that businesses will remain inventive and adapt to consumer behavior by making the buying process less transactional. The future forecasts for the mattress business show that technical advances and increasing attention on mattress production are going in a sustainable direction to reduce manufacturing costs. This can lead to online stores being more comfortable integrating smart technology costs in the correct location, which can lead to a new level in marketing for the business and new revenue sources. They should be well-prepared for a lengthy path to pay in full if they remain loyal to companies.
