Simmons Bed Achieves Record High Sales of 313.8 Billion KRW

Impact on Premium Bed Market Performance

Simmons has achieved its highest sales since its founding.

Simmons announced on the 1st that its sales in 2023 reached 313.8 billion KRW, a 10% increase compared to the previous year. This is the highest sales figure since the establishment of its Korean corporation in 1992.

Operating profit rose 170% compared to the previous year, reaching 31.9 billion KRW. The operating profit margin increased by 6 percentage points from last year to 10%, showing double-digit growth in both sales and operating profit margin.

Simmons cited the following factors for the sales increase: ▲a dominant position in the premium mattress market priced over 3 million KRW and ▲the remarkable growth of the premium vegan mattress collection ‘N32’. The ‘Beautyrest Black’, priced over 10 million KRW per unit, also surpassed the milestone of selling 300 units per month for the first time in January last year since its launch in 2016, maintaining an average monthly sales volume of over 300 units.

Simmons analyzed that the premium vegan mattress collection N32, the first in the bedding industry to use no animal-derived materials in all products and to obtain vegan certification, met the demand of today’s consumers who are sensitive to ESG management. Sales of N32 more than tripled compared to the previous year.

A Simmons representative said, “In a recession, consumers’ choices based on quality and brand trust seem to have become clearer, leading to the sales increase. The rise in operating profit margin was a temporary phenomenon caused by a significant reduction in TV advertising expenses under the special emergency management system last year. Since costs such as labor, commission fees, logistics, and rent have already risen considerably, much effort is still needed to improve the (operating profit margin).”

Meanwhile, donations, an indicator of corporate social responsibility, more than doubled to 860 million KRW last year compared to 410 million KRW the previous year. This was thanks to donations for treatment costs to help pediatric and adolescent patients at Samsung Seoul Hospital and the launch of the industry’s first ESG bed, ‘Beautyrest 1925’. For every sale of Beautyrest 1925, 5% of the consumer price is accumulated as a fund for remodeling the Samsung Seoul Hospital Pediatric and Adolescent Center, scheduled to be completed next year. As of the end of 2023, 400 million KRW has been accumulated.