How cushy is the transformation for the Indian mattress industry
The Indian mattress industry which accounts for roughly 80% of the unorganised sector has grown at a CAGR of above 11% over the last five years. During this same period, the increasing health awareness and purchasing power of the consumer has catapulted the CAGR of the organised sector to over 15%.
Driving customers to the stores has long been the end goal of every brand. With the shift of advertising spends being pushed from traditional broadcast and print to digital social media platforms, consumers are looking beyond just brand awareness.
The growth opportunities within this industry encouraged many new entrants to jump in. However, the current pandemic crisis has resulted in a short term slump in sales.
Will the manufacturers skip the retail route to sell online and save costs or should they spend more on product awareness and brand promise via social media to boost sales?
Are the brands geared up to face the emerging challenges and provide a unified solution to their customer.
The biggest challenge mattress retailers face is the PRODUCT itself.
The research on the product, brand, and consumer experience happens online and much before the consumer reaches the retail outlet. The brand custodian at the retail outlet can only make the customer see, feel and touch the product before a purchase.
In such a situation, brands should adopt a communication strategy where factors that influence customers to lock on a product should be clearly pushed out. This could be in the form of the unboxing usage experience, genuine pros and cons along with realistic price comparison charts. Brands could also include real customer testimonials.
It is true that the mattress industry is undergoing massive transformation, and that the brands have been forced to innovate, the narrative is still unfolding. It is still to be determined which players will sustain.