UK sleeping giant sounds the alarm on Aussie sleep industry
The Australian sleep industry is only third of the UK’s, however, the local market is forcing consumers to pay 44% more for mattresses.
The Australian sleep industry is only third of the market size of that of the United Kingdom, however, the local market is forcing consumers to pay 44% more for mattresses.
One of Australia’s most successful sleep brands is Koala, but what has the growth of this bed-in-a-box brand cost Australians?
European market leader Emma — The Sleep Company has recently launched in Australia, with co-founder Benjamin Quiroga-Rivera shocked at the prices consumers were paying.
“Many consider bed-in-a-box to be the inexpensive option for mattresses. However, I can tell you the current market is grossly overpriced,” says Quiroga-Rivera.
“We want to deliver a wake up call for the APAC sleep industry. Emma’s promise to Australians is a top-quality product at a price that they won’t lose sleep over,” he says.
Since launch, Emma has already seen an appetite for a more affordable way to sleep.
Hitting snooze on high margins
Quiroga-Rivera says consumers shouldn’t mistake the lower price point for poor quality or cheap production costs.
“There is a huge misconception in retail that price must reflect quality. Emma’s facility plant looks more like a lab than a manufacturing plant because of the level of detailed quality testing that goes into production,” he says.
Based in Germany, home of luxury car brands Voltzwagen, Audi and BMW — Emma is no different. Except instead of a high tech car, you’re getting the same level of detail and design but in a mattress says Quiroga-Rivera.
“We have a multi-million dollar research and development team headed by neuroscientists to ensure our products are backed by scientific research and the latest technology,” he says.
The quality is proven — Emma’s three layered signature foam mattress was awarded the United Kingdom’s ‘Which? Consumers’ Association Test’ and CHOICE Equal Top Score award-win in Australia plus a further 29 international awards.
Sounding the alarm on Australia’s sleep industry
Despite the population of Australia being three times smaller than the UK, the value of mattress purchases are the same in both markets. Emma’s lower price point has rung alarm bells for local competitors.
“We are well aware Australians are paying too much for a good night of sleep, with mattress prices heavily marked up with no discernible improvement in product quality,” says Quiroga-Rivera.
More than seven million Australians suffer from a bad night of sleep each year. This lack of quality z’s doesn’t just affect the individual, but results in a $26 billion loss to the economy according to a study by the Sleep Health Foundation.
Why? Because a poor night’s sleep substantially reduces workplace productivity and decreases working days.
Quiroga-Rivera says one of the key things to improve sleep is in bedroom infrastructure – but the cost of purchasing is far too high.
“At Emma, we know sleep doesn’t have to be expensive and Aussies are already overpaying for a good night of sleep,” he says.
Don’t let the bed budget bite
Buying a new mattress can take a significant bite out of the household budget, and is often something that isn’t planned for until there’s an issue.
It’s best practice to change your mattress every six to eight years, which is why Emma comes with not only a ten year warranty but also a 100 night free trial.
“Because we’re that confident in your quality night’s sleep. With millions of people worldwide choosing to sleep on an Emma mattress each night, we know our mattresses stand for quality and value,” says Quiroga-Rivera.
This involves manufacturing our top quality eco-friendly products with German technology to allow breathable and moisture-wicking materials and ensure temperature stability that is ideal for all sleepers.
Retailing over one million mattresses since the business was founded in 2015, Emma has sold more than 620,000 mattresses in the past year alone.
Emma has no signs of slowing its plans for expansion and has its sights set firmly on Asia-Pacific Region as its next big growth opportunity.
Quiroga-Rivera says ‘the times of sleepy high-margins are over’.
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