End of Yanggang System, Era of Infinite Competition in Mattresses

Hyundai Department Store's Jinus and Hanssem Challenge Ace Bed and Simmons
Coway and Wells Rental Services Also Show Growth Trends

[Asia Economy Reporter Donghyun Choi] Competition in the bed mattress market is intensifying. The duopoly of Ace Bed and Simmons is gradually being challenged as furniture and rental companies expand their influence, ushering in a full-fledged era of competitive rivalry.

According to the Korea Sleep Industry Association on the 11th, the domestic sleep market size grew from 480 billion KRW in 2011 to over 3 trillion KRW in 2019. Although there are no recent accurate statistics, the growth trend continues. Mattresses are estimated to account for about half of this market. The industry explains that the mattress market growth is clear, given that the overall furniture and interior market experienced a 'COVID-19 special demand.'

A typical example is Hyundai Department Store Group's recent acquisition of Zinus for 774.7 billion KRW, the largest M&A amount in its history. Zinus is a bedroom furniture specialist company producing mattresses and bed frames, ranked number one in mattress and box spring sales on Amazon. Based on its overseas recognition, it is expected to gradually expand its presence in the domestic market through collaboration with Hyundai Livart and other living affiliates of Hyundai Department Store Group. Hanssem also plans to focus on the sleep market this year, listing 'strengthening mattress market penetration' as a core agenda in its newly drafted business plan.

The rental industry is also experiencing growth by achieving strong performance in the mattress market. Coway, which entered the mattress market early in 2011, has emerged as a dark horse in this sector. Last year, its mattress sales alone reached approximately 210 billion KRW. Considering that Ace Bed and Simmons each recorded sales in the 300 billion KRW range with 30-40% market shares, Coway is closely trailing the leading companies.

Coway mattresses gained popularity among consumers thanks to rental services. It is praised for pioneering a new market by bringing the rental business concept, first introduced in the water purifier industry, to mattresses. The current estimated mattress rental market size is about 350 billion KRW. Especially in the COVID-19 era, with increased hygiene concerns, the popularity of rental services offering replacement and maintenance has grown even more.

Kyowon Group's rental brand Wells is focusing on acquiring customers by shifting from the traditional mattress rental method centered on hygiene management to a 'sleep care solution' approach, which includes sleep data measurement and management, as well as health consultations. In January, it also introduced two premium mattress models used in five-star hotels.