Customisation How - Indian Sleep Products Federation

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Customisation How - Indian Sleep Products Federation
July 2019         Volume 1 | Issue 3
     INDIAN SLEEP
     PRODUCTS FEDERATION

                                                                          by ISPF

How
customisation
of mattress
work for the industry?

22      Challenges in distribution of   18   Building a better bed: The role of
        bedding products                     manufacturers and suppliers
Customisation How - Indian Sleep Products Federation
Customisation How - Indian Sleep Products Federation
Content          3

                                   Cover Story                             10

Editor
S. Sundaresan

Editorial & Advisory board
Indian Sleep Products Federation
A/5, Veerabahu Nagar,
Pettai, Tirunelveli - 627 004
India

                                   How
                                   customisation of
Project managed by
eMpulse Research and Data
Analytics (I) Pvt Ltd

                                   mattress work
Printed at
Aditya Graphics and Printers

                                   for the industry?
Editorial correspondence
may be addressed to
Editor,
Indian Sleep Products Federation
A/5, Veerabahu Nagar, Pettai
Tirunelveli-627004
India                              Believe it or not, the ager of custom-made
OR
email: ispf.0813@gmail.com         mattresses and sleeping-products has
https://www.ispf.co.in/
                                   arrived. But what is waking up and what is
                                   interrupting this new industry wave?
Customisation How - Indian Sleep Products Federation
4         Content

Interview                                                      34      Reports              55

             We sleep on a Mattress but
             spend on a Sofa
             Raghav Menon, CEO/Executive Vice
             President, Mattress Division, Sobha Ltd.

             Design-Thinking, Customer-                        45
             Centricity: Perfect Materials for
             a Good Mattress
             Subodh Mehta, Senior VP, Godrej Interio
                                                                       ISPA releases 2018
                                                                       Mattress Industry
History                                                        48      Trends Report
Turning points in India’s
Mattress Industry
In a country where the local                                           Events                  52
cotton ginner would sew a bed in
days, branded mattress wouldn’t
take roots so fast. But the
opportunity was there and it was
only a matter of time.

Feature List                                                   18
                                                                       ISPF organises Retail
                   Building a better bed: The role of                  Training Program at
                   manufacturers and suppliers                         Hyderabad
                   The manufacturers and raw material suppliers
                   are working together fruitfully in order to serve   Inaugural edition    58
                   the best to the customers                           of Sleep Expo
                                                                       Middle East ends
Challenges in distribution of bedding products                 22
                                                                       on a high note

Old mattress & Health: Exploring the relation                  26      OTHER STORIES

No time to snooze                                              30      India News              8

Get a pillow that suits your requirement                       38      Global News             9

How Digital Natives are showing a new way to
                                                               41      Sleep Facts             56
Traditional Players
Customisation How - Indian Sleep Products Federation
5

                     FROM THE

EDITOR
W
              e are called ‘Comfort          role in the future of the industry. We
              Times’. But in this issue we   talk about new materials used inside
              have chosen to confront        and over a bed, we discuss the impact
              a lot of uncomfortable         of digital marketing as well as the
questions flanking the industry. Yes, it     disruption ushered in by digital natives
is the third issue and we have already       for traditional players, we unravel the
come a long way in understanding             unpleasant side of old mattresses
the industry in terms of both depth          from a health perspective, we explore
and contemporary context. But in this        the potential of new elements like
issue, we dial the level of courage and      mattress servicing and santisation,
curiosity many levels higher.                and we argue again about the role of
                                             associated products like good pillows
    As you will notice, the cover            in contributing to better sleep.
story itself, picks a crucial question
that the industry is grappling with.             Of course, as always, these deep
Customisation – we try our best in           dives are peppered with interesting
this story to get into as many layers of     observations,         multi-dimensional
this concept as possible. We give you        analysis,      engaging       examples,
its upsides; the deterrents that hold        entertaining trivia and relevant updates
this force back; as well as the many         in the industry.
on-ground realities that envelope the
utopia of a personalised product.               We have aimed to take a closer
                                             and deeper look at some important
    Similarly, we become brave and           questions this time. The idea is to get
examine another critical challenge that      the industry out of a comfort zone. The
afflicts the industry in our feature on      goal is, like this magazine’s very first
distribution struggles. We delve into        page intended, to create better sleep
factors like transportation, storage and     and happier customers.
quality that punctuate this industry
aspect.                                          Hope you get something out of this
                                             issue. Hope we can accelerate that goal
   We also apply the same sharp eye          together and better.
and nose to other issues and ideas
that are going to have a pronounced             Happy reading. Happy questioning.

                                                                S. SUNDARESAN
Customisation How - Indian Sleep Products Federation
6

             INDIAN SLEEP PRODUCTS FEDERATION

    MANAGING COMMITTEE MEMBERS

    Sheela Foam Limited

    Centuary Fibre Plates Pvt. Limited

    Kurlon Enterprise Limited

    Tirupati Foam Limited

    Duroflex Pvt. Limited

    Godrej & Boyce Mfg. Co. Ltd.

    Sobha Limited

    M. M. Rubber Company Limited

    Real Innerspring Technologies Pvt. Ltd.

                                              www.ispf.co.in
Customisation How - Indian Sleep Products Federation
7

V I SI O N

   To promote the sleep products industry by
   enhancing consumer awareness on quality sleep,
   while setting benchmarks for its products and
   services.

   To represent the industry with a commitment to the
   society and the environment.
Customisation How - Indian Sleep Products Federation
8            India News

Contribution for
                                            New product on
a noble cause
Taking a novel initiative to support
                                            the fore
the human life highly impacted by           The Indian mattress industry is
the Cyclone Fani that hit the Odisha        marked by yet another innovative
state in the first week of May 2019,        product launched by New-Delhi
Century Mattresses has contributed Rs       based online sleep solutions brand
5 lakhs to the Odisha Chief Minister’s      Durfi. The flagship product of the
Relief Fund. This contribution has been     company, Cotton Candy memory
made by the company with an aim to          foam mattress is designed to keep
empower the Odisha state government         the back aligned and has all the
in providing critical support in terms      features to allow comfortable sleep.
of rebuilding homes, devastated             The best part about the product is
infrastructure and ensuring the             that it is fully customisable. Also, it
necessary daily needs of the victims.       is directly shipped to the customers,
                                            which means that the middlemen
                                            are eliminated and this makes the
                                            product highly affordable. As per          pure high resilience comfort layer with
                                            the company, “The product aims to          airflow technology. Further, the Cotton
                                            provide a quicker response at dispersing   Candy foam mattress has a base
                                            heat and properly regulates body           support orthopaedic layer for ultimate
                                            temperature as compared to traditional     back support and is dust mite barrier
                                            memory foam. It features 100 percent       and insect-free.”

On an aggressive
growth path                                 Sleepwell introduces Neem Fresche
Taking a step towards aggressive            to protect you, while you sleep.
growth, online mattress start-up            Sleepwell’s Neem Fresche treatment          Our body’s perspires and sheds old
Wakefit is aiming to achieve Rs 260         in all its products promises to provide     skin. These particles make way for
crore in FY20. By the end of this fiscal    its consumers an Invisible Shield           harmful microscopic microbes to
year, the company expects to earn           of protection against microscopic           flourish, which further, leads to various
Rs 80 crore revenue and Rs 8 crore          allergens.                                  allergies and health disorders.
net profit which would be up from Rs        According to online reports, several        Understanding this need of today’s
27.6 crore revenue and Rs 2.2 crore         allergies - asthma, rhinitis and            Health Conscious customers,
net profit that it earned in fiscal 2018.   contact dermatitis were found to be         Sleepwell has introduced Neem
The company also aims to expand its         more prevalent among the Indian             Fresche treatment to all its
warehouse network in the country from       population.                                 Mattresses, Furniture Cushioning,
four to seven and add 50 people to its      Another Global study highlights that        and Home Comforts Products. Neem
team by the year-end 2019.                  the market of                                                   Fresche provides
                                            Allergic Rhinitis is                                            an invisible Shield
                                            growing. The market                                             of protection
                                            of allergic rhinitis will                                       against microscopic
                                            grow at the CAGR                                                allergens by
                                            of 7% during the forecasted period of       preventing their breeding over a
                                            2017 to 2023. The allergy or hay fever      period of time. Sleepwell’s Neem
                                            can be avoided by preventing one from       Fresche is based on the collaboration
                                            coming in contact with the allergen.        with their International Partners
                                            With this sensitivity towards allergens,    – BioScience from Australia that
                                            consumers are becoming more                 combines Traditional Power of Neem
                                            conscious of their Health & Wellbeing.      and a powerful Bio Active Agent
                                            While consumers ensure the regular          Fresche. Fresche Bioscience comes
                                            cleaning of their house and assets for      with an International Certification of
                                            freshness, the core of the furniture        US- EPA. Importantly, Neem Fresche
                                            cushioning, mattresses and pillows          Treatment does not Degrade with
                                            remain unaddressed due to its built-up      Frequent Washing or Cleaning and is
                                            structure.                                  environmentally safe.
Customisation How - Indian Sleep Products Federation
Global News                        9

                                           Donation for a good night’s sleep
  Global mattress
  market forecast                          Allswell Home, an online luxury
                                           mattress and bedding brand managed
                                                                                      also hosted a donation drive on its
                                                                                      Instagram page on May 15, 2019,
  It seems that the global mattress        by Bonobos, a men’s clothing company       wherein the social community was
  market is all set to see a major         that is owned by Walmart has               asked to comment on the post with
  boom as numbers support this fact.       extended support to                                          a bed emoji. Each
  As per a recent research report by       Good360 which is                                             bed emoji triggered
  the Transparency Market Research,        Alexandria, Virginia-                                        a specific donation
  global mattress market is expected       based charitable                                             amount from Allswell.
  to rise at a CAGR of 6.5 percent for     organisation. Keeping up to its belief     Further, the brand has also promised to
  the forecast period between 2017         that everyone deserves a good night’s      donate an additional $25 to Good360
  and 2024 to reach a valuation of         sleep. Allswell Home provided mattress     up to $250,000/year for every verified
  US $43.43 bn by the end of               and financial donation to the foster       product review their community
  2024. The report also states that        children. In line with this, the brand     submits.
  particularly developing countries,
  Asia Pacific region, Africa and
  Latin America are expected to see        In search of Slumber Star Intern
  increased mattress sales due to
  growth in the domestic, commercial       Houston-based, mattress speciality retailer, Mattress Firm has announced its
  activities, hospitality industry and     search for the next Slumber Star Intern with the second annual Snoozetern
  rising disposable income of the          internship. The selected candidates are expected to serve as the company’s
  people.                                  sleep influencer. This is believed to enable the social media followers of the
                                           company to have a first-hand look at the company’s culture, testing, teasing new
                                           and upcoming product launches. This will also help the company in catching the
                                           attention of social media followers through engaging content.

                                           SAATVA launches adjustable Solaire mattress
                                           New and innovative product has yet         made from 100 percent natural Talalay
                                           again hit the mattress industry. This      latex comfort layer with five-zone
                                           time, Saatva, America’s online luxury      lumbar support, contouring memory
New entrant in the                         mattress company is in the news for        foam for pressure relief, breathable
                                           the same. The company has launched         organic cotton cover, moisture barrier
mattress industry                          a precision adjustable Solaire mattress    to protect precision components,
In a bid to evolve as a complete           with six luxurious layers of comfort and   integrated, whisper-quiet inflation
lifestyle brand, luxury textiles maker     50 adjustable firmness options. The        system and dual remote controls with
Sferra has added a new product             company claims that the product is         real-time firmness display.
category i.e., mattress in its bouquet.
The company forayed into the
mattress segment by introducing                                                              Compton purchases
two styles of mattresses. The
handcrafted and made-to-order                                                                new plant
Sonno Notte mattresses have                                                                  The plant of Royal Sleep
exceptional features. As per the                                                             Products in Fort Worth, Texas
company, “The mattresses which come                                                          has been bought by Compton,
in three sizes feature zoned innerspring                                                     California-based manufacturer
coil system to relieve pressure points                                                       Diamond Mattress. As per
paired with high-performance natural &                                                       the reports, this purchase
foam materials and hand-tufted wool                                                          will give Diamond Mattress
rosettes.”                                                                                   another 60,000 square feet of
                                                                                             manufacturing, warehouse and
                                                                                             distribution capacity and the
                                                                                             ability to offer faster shipping to
                                                                                             an expanding customer base in
                                                                                             the central and southern United
                                                                                             States.
Customisation How - Indian Sleep Products Federation
10     Cover Story

How
customisation
of mattress
work for the industry?
Saves nine annoyed customers. Yes, believe it
or not, the age of custom-made mattresses
and sleeping-products has arrived. But what
is waking up and what is interrupting this
new industry wave?
Cover Story                    11

G
        etting a mattress was enough.
        One ‘had’ to make peace with it.
        Irrespective of one’s body type,
        sleeping-position, preferences
and quirks about sleep; there was
always that ‘one mattress for all’.

    But like a couple in Bangalore who
had different requirements and sought
personalized mattresses, there is
something adrift across mattress aisles.
If one person has back issues and the
other needs a softer feel, sooner or
later, they will both need a personalised
product instead of something that they
both have to compromise on.

    That is happening. People are
not only asking for, but also getting,
mattresses that can indulge one
person’s needs ‘exclusively’. Yes, from
firmness level, number of layers, splits,
height, frame, spine alignment to                 There is something adrift across mattress aisles.
temporary adjustments – mattresses
have entered new contours of customer
                                                  Consumers are not only asking for but also getting,
satisfaction. They are ready for a much-          mattresses that can indulge one person’s needs
due industry evolution – the era of
‘Customisation’.                                  ‘exclusively’. From a personal preference of surface
                                                  firmness levels(extra firm or soft), mattress built-
Various ways of customisation
Size! That comes fixed from the company.          up customization, doctor’s recommendation for
As Mr. Sameer Kalra, Owner, Maharaja
Furnishings, Rajasthan points out, “The
                                                  spine alignment, mattress size & shape, thickness,
only possibility at our end is simply cutting     number of layers, splits, height, frame, to
as per customer’s requirement; and that
too only for foam mattresses. For spring          temporary adjustments – mattresses have entered
and coir formats, this size-cutting can           new contours of customer satisfaction. Consumers
only happen at the company’s end. The
support, or special needs, for this aspect or     are ready for a much- due industry evolution – the
something else - that a retailer needs help
on- only gets a manufacturer’s attention
                                                  era of ‘Customisation’.
when a considerable level of sales is
accomplished.”                                     In Mr. Mahendra Pokharna’s              Reverie, Luxi, PlushBeds and ReST
                                                assessment, most customers are             chasing a new market opportunity - ‘lack
    Turn to Mr. Mahendra Pokharna,              satisfied with the level of size and       of customisation’? The offerings and
Head of a Sleepwell showroom (Vinayak           quality that is available now, with no     options that some players, both new
Showroom) in Udaipur, and he would              other peculiar customisation needs         and old, have started to bring on to the
also aver that yes, size is the main            spotted yet. Mr. Sameer Kalra also tells   shelves are truly unprecedented. They
customisation need that has emerged             that right now 6/6 and a half inches,      do not make a customer adjust to a
in the market. “Most models come                three by 6-one-fourth inches etc. are      mattress but do the opposite. They ask
with a fixed configuration and size is the      dominating the market in contrast to       for, anticipate, and adjust to a customer’s
only thing that we can personalise for          the just one size of six by three inches   unique needs – and then give a mattress
a customer. It is a market of about 60          that was prevalent earlier.                that fits her/him to the T.
percent non-standard sales right now.
Most companies address these non-                   But that is bound to change as times      A look at a spectrum of ways in
standard size requirements upon order. It       roll on. Are we not spotting Casper,       which customisation is showing its
takes anything from three days to ten days      Rocky Mountain, Tempflow, Helix            unmistakable presence will tell a lot
for the company to furnish a requirement.”      Quiz, Create-a-Mattress, Dreamfoam,        about this big industry-shift. Today,
12            Cover Story
                                               Customisation
                                                   Types
mattresses cannot afford to be just
mattresses. Customers can be offered                                                    9. Different Materials: Types
a buffet of alternatives to get a really-     A look at a spectrum of ways in               of material that can cater to
bespoke mattress:                             which customisation is showing its            differences in temperature,
                                              unmistakable presence will tell a lot         bounce and breathability
Just what the Doctor ordered                  about this big industry-shift. Today,     10. Motion Isolation: if a sleeping
Well, a Helix survey notes remarkable         mattresses cannot afford to be                partner shifts weight of one side
variations in sleeping-positions to           just mattresses. Customers can be             of the bed, the other side does not
start with. It revealed that 66 percent       offered a buffet of alternatives to get       get affected
customers are side-sleepers, 18               a really-bespoke mattress:                11. DIY boxes: Grid-based options
percent are back-sleepers, 16 percent         1. Mattress built up: Arrangement             that a customer can unzip and
are stomach-sleepers and 35 percent               of layers and foam-densities              then use to configure a mattress.
wake up with back-pain. To add to these           for a customer’s body type and            One can arrange the foam barrels
differences, there is another preference-         firmness preference                       and cells as per one’s needs.
box. There were 51 percent who tend to        2. Mattress Firmness: Sleeping                Firmness levels are categorized in
sleep hot, 28 percent like a plush-feel           surface firmness and feel                 different colours so it is easy for
bed, 32 percent like a firm-feel bed and          preferences for individuals               a customer to design one’s own
60 percent like a medium-feel bed.                changes as per their body type.           firmness utopia
                                                  So it becomes important to            12. Different mattress: Different
    Medical experts and holistic wellness         have ideal firmness for each              mattresses for side sleepers, back
consultants confirm the argument that             mattresses.                               sleepers, stomach sleepers etc.
such numbers often make. “People have         3. Mattress Fabrics: Fabrics that         13. Medical Support: Pressure-point
forgotten to sleep right. They do not even        can reduce moisture or can offer          support so that side sleepers or
know what position they sleep in. How             lumbar support or control heat-           medically-sensitive cases can get
can we expect them to sleep right when            variations                                the right support
they sleep in a sad state of awareness        4. Mattress Size: Ability to fit to a     14. Smart mattress: Smart
thanks to the addiction-spree of alcohol,         given bed-size or frame                   mattresses with sensors that can
blue-screens and poor lifestyle choices?”     5. Temperature control: Cooling               adjust materials and shape to
Dr. Saroj Sharma, Head, Kala Ashram               comfort layers for hot regions            differences and sleeping-position
Wellness Centre who gets severe cases         6. Dual Sided: Two-sided dual                 every night. They read body
of insomnia and depression at the                 comfort mattresses and                    heat-maps, pressure hot-spots,
centre, cautions about the heightened             customisable beds for couples             and roll-over patterns so that
need for a conscious choice in sleeping           with different needs                      compressors inside the bed can
right.                                        7. Body Support: Capabilities like            automatically balance air pressure
                                                  body contouring and zoned                 beneath several body parts – hips,
    Many medical practitioners have               support for various regions –             head, side, spine, feet etc – but so
often lamented poor sleeping-position             head, lumbar area, waist, hips and        slowly and subtly that the sleeper
as both a cause and an effect of back-            feet                                      does not wake up untimely or in
pain. To maintain the natural curves of       8. Adaptive Mattress: Responsive              an abrupt manner
the spine in bed is essential, but not so         and adaptive coil, foam, weight-      15. Customer Preference: Quiz-based
easy. If a doctor recommends someone              distribution micro units and layout       shopping where a customer is
with a herniated disc to sleep in a foetal-       choices                                   equipped with better knowledge
position or if someone with lower back-                                                     of what one truly needs and then
pain is prescribed a reclined-position                                                      given options that fits
– we know that the way we sleep is                                                      16. Orthopedic mattress: Mattresses
not a trivial matter when it comes to                                                       that can align to different weights,
spine health. Stress on back, head and                                                      sleeping-positions and pressure
shoulders can be easily controlled by                                                       points. Ex: Orthopedic mattresses
using the right mattress. And for that;                                                 17. Memory Foam: Foam and spring
cognizance of what one needs, and                                                           mattresses with an upper layer of
lacks, is crucial.                                                                          gel memory foam so that they can
                                                                                            mold as per the shape of the body
    Dr. Yatin J Patel, a board-certified                                                    no matter what one’s sleeping-
pulmonologist, published author and                                                         position is
sleep physician who is a passionate                                                     18. Life-stage-based options: That
advocate of a lifestyle founded on                                                          adapt to injuries, pregnancies or
healthy and happy living, corroborates                                                      special athlete-needs
Dr. Saroj Sharma’s concerns when he
Cover Story                      13

talks about the poor state of sleep                     To understand the value getting there. As of now, to understand the
health in India. “Sleep health globally                                         value of customisation and pay money for
has been ignored and more so in rapidly
                                                        of customisation and    customisation - that is still far off for India,
developing country like India. The young         pay money for customisation except for a few customers.”
population in our nation is so preoccupied       - that is still far off for
with chasing success that it ends up                                            A peek from the other side
ignoring sleep quantitatively, and more
                                                 India, except for a few        Making good listeners in the form of
importantly, qualitatively. This sleep-deficit   customers                      mattresses is not going to help users
retards their executive performance. Their                                                     alone. It is good lumbar support for the
creativity, problem-solving, and optimism                                                      industry as well.
get adversely affected.”                                         Tushaar Goutam,
                                                                 Director, Sheela Foam             Mattresses receive the least bit
    Dr. Yatin J Patel observes, and deals                                                      of attention while making homes.
with, a lot of sleep-disorders at his                                                          But, gradually the urban Indians are
private practice, Sneeze & Snooze Clinic,                                                      realizing the importance of good sleep
Indiana. As the Medical Director of the          unique sleep needs. But he maintains          and it’s direct impact on our health.
Center for Sleep Studies at Goshen               that the bigger issue is our lack of focus    Mr. Gaurav Gulati, a noted branding
Hospital and ‘The World’s Only Sleep Doc         and our ignorance as to the importance        expert, author and Personal Branding &
with a Notre Dame MBA’, as he prefers            of sleep in helping us live a full and a      Brand Engagement Consultant. “Hence,
to introduce himself, Dr. Yatin J Patel          productive life. “Once you have made that     the mattress industry - by encouraging
makes sense when he points out the               commitment to getting a sound sleep of        customisation - is providing the consumer
unique differences that every individual         seven hours, then you can look for products   with simple, smart, and effective sleep
has pertaining to the way one sleeps.            that can help you achieve that.”              solutions. Sound sleep makes a sound
“Yes, within a predefined range, each of us                                                    mind!”
has unique sleep needs. My wife needs six-           These insights and questions find
and-a-half-hours to feel alert and energetic     an echo elsewhere too. Mr. Tushaar                However, such an evolution also
all day, while I need seven hours of sound       Gautam, Director, Sheela Foam observes        needs new models and approaches from
sleep to be at my best. According to the task    that the fundamental research that is         the industry so that customisation is a
force convened by the American Academy           underway at the company (on the basic         durable, pervasive and easy-to-execute
of Sleep Medicine and the National Sleep         science of sleep) has revealed different      strategy.
Foundation, we need sound sleep of seven         needs for different kinds of bodies.
hours - give or take thirty minutes.”            The issue that the industry, hence,               The      platform-based       approach
                                                 confronts is ‘how to communicate this         pioneered by brands like Casper is
   He welcomes the burst of new sleep            to customer – through sales channels,         worth reckoning while discussing
products that aim to fill the void of            doctors and other means’. “We are             customisation in the industry. Casper, as
                                                                                               Mr. Daveed Kuruvilla, Director, Restolex
                                                                                               Coir Products Pvt Ltd notes, was
                                                                                               revolutionary in its implementation of a
                                                                                               new business model of selling directly to
                                                                                               the end consumer. “This sort of approach
                                                                                               would work anywhere as it reduces prices
                                                                                               for the customer, provides trial-periods
                                                                                               etc. When this approach began, players
                                                                                               like Casper marketed their product as a
                                                                                               mattress that’s perfect for all. This clearly
                                                                                               was not the case as different people like
                                                                                               different things. Now Casper offers multiple
                                                                                               types of mattresses, even incorporating
                                                                                               springs. So would the approach of selling
                                                                                               directly to customers online work? Most
                                                                                               definitely. Would marketing one mattress
                                                                                               to suit all work? Probably not.”

                                                                                                   Mr. Gaurav Gulati explains this
                                                                                               ahead from a marketer’s angle as well.
                                                                                               “If Casper manages to position itself as
                                                                                               a perfectly-priced premium brand with
                                                                                               good storytelling, trust me, they will be
14            Cover Story

unstoppable after all Crocs footwear                We have been in the                     says, customisation of mattress is an
success in India too is completely based            industry for more than                  interesting scenario of our country.
on comfort and health, who wears it for                                                     During our research, we found that
fashion and style. Yeah, it may be a show-    31 years but the amount                       there is an absolute lack of awareness.
off for some.”                                of customisation requests                     Today, in India, branded companies
                                              we get every day is nothing                   are serving only 15 percent of the
    But Mr. Gaurav Gulati also underlines                                                   bed requirement. The remaining 85
the demand side here. “Basically, what        compared to the scenario 30                   percent is getting their bed made by
all customers consider while purchasing       years ago.                                    local manufactures or carpenters.
a mattress is their health condition                                                        Many of them, including the customers
and sleeping experience on a particular                                                     approaching them doesn’t know that
mattress.”                                                                                  the standards exist. The relevance of
                                                              Nirbhay Gupta,
                                                              CEO, Coirfit Mattress
                                                                                            standardisation is important when
    Mr. Nirbhay Gupta, CEO, Coirfit                                                         you need many items from different
Mattress observes that with a paradigm                                                      companies to complete the solution.
shift in the choices of consumers, it has                                                   Hardware industry, Sanitary industry,
become mandatory to cater to the fast-        sure it will completely suit the user’s       Construction industry are some of the
growing demands of the consumers. “We         body. “Because it is not just about selling   examples. For using the bed for sleeping
have been in the industry for more than 31    a product but also about proffering a good    purpose, you need many other items like
years but the amount of customisation         sleep experience to the end user.”            mattress, bedsheets, pillows etc which
requests we get every day is nothing                                                        is manufactured by different companies.
compared to the scenario 30 years ago.”           “With more than million satisfied         In order to get everything fitted well on
                                              customers, Coirfit has a wide range of        the bed, standardisation is a must. We
    He explains how an entire mattress        mattresses made to suit each person’s         observed that customers build their
customisation is now possible based           sleeping needs. We aim to deliver the         bed without the knowledge of this
on the choice of fabric type, edge            best mattresses keeping in mind all the       and later get into the trouble of buying
design, size, comfort level and even          preferences of the buyer. To accommodate      customised mattresses, bed sheets etc.
the      inside-layer        configuration.   our customer demands, we rely on every        which will end up in an expensive and
“Therefore, we give an option to provide      major to minor attention while designing      time-consuming affair for them.
a completely customized mattress              the mattress. From mattress comfort to
while guiding the user about the various      mattress look, we work towards developing         Mr. Saurabh Sharma slices the
advantages of different mattress layers.      innovative, yet personalized, sleep systems   issue further and says, though we are
We understand when it comes to health;        for the users.”                               well equipped to do customisation of
there should be no scope of carelessness or                                                 any model, we are encouraging our
misguidance.”                                   So customisation is good, but how           customers and channel partners to
                                              much of it can be real?                       promote standard variants for the
   While customers are willing to                                                           benefit of them. This will help in reducing
experiment with a hybrid of latex +           The Real Cut                                  waste of material, time, effort and in the
memory-foam mattress or a medium              There are many factors that can add           end help us offer our products in a highly
comfort    memory-foam          mattress,     new arguments on the customisation            competitive price and faster delivery.
Mr. Nirbhay Gupta stresses that the           aspect, when one looks beneath the
company does not believe in crafting          superficial layers. Mr. Saurabh Sharma,          If the mattress industry in India is
the same for them till the time it is made    General Manager, Godrej Interio,              ready to give that ease, comfort, and
Cover Story                          15

       As we all are different
       in our body structure
and sleep requirement, one
type of mattress cannot
offer correct solution to
everyone. Hence its critical
to have personalised
mattresses according to the
body type. In future as people
get more aware about sleep,
we believe customisation in
this direction would be more
in need.
                                                 a ‘one size fits all’.” Coirfit’s Mr. Nirbhay         We should first start
                                                 Gupta adds.                                           encouraging people
               Saurabh Sharma,
                                                     Mr. Daveed Kuruvilla adds that any          to know about mattresses
               General Manager, Godrej Interio
                                                 mattress maker who values their brand           before we can encourage
                                                 name would have to positively align             them to customise.
                                                 themselves with sleep and wellness
experience to the people; that Casper            issues, regardless of being an online
gave to its customers and could grow             player or a brick-and-mortar/touch and
exponentially, the model can be worked           feel player.                                                    Daveed Kuruvilla,
                                                                                                                 Director, Restolex Coir Products
out here too, reasons Mr. Gaurav Gulati.
                                                                                                                 Pvt Ltd
                                                     Users are more aware, as Coirfit’s
    This strategy can disrupt and                Mr. Nirbhay Gupta explains, than before
challenge many legacy models and                 regarding their health and have become          count in all the special manpower force
complacent players. But the rewards              extremely conscious while picking a             that designs, engineers, creates and
can be attractive enough. After all,             mattress for themselves. “Whether they          assembles custom-built mattresses.
what better and deeper way of creating           buy their sleep haven online or offline, they
differentiation and loyalty than giving          are inclined to research about it before            Customisation, as industry players
a customer something that fits like a            opting for one. A concomitant aspect of         will aver, is an expensive foray. It is not
square peg in a square box unlike the            this research and their needs leads to an       always cost-effective.
‘square peg in a round hole’ options             inception of getting a mattress customised
that customers have been living                  to suit their body preferences. However,            Mattress industry never encourages
with for years now. This also makes              as sleep experts, it falls into our hands       customisation of their mattresses, but
sense because mattresses are still,              to make sure that each product offering         they are left with no option when sales
comparatively a low-frequency but                is genuine and eases their sleep related        of furniture beds are non-standardised
a high-involvement purchase in a                 issue.”                                         and due to this, mattress competitors,
customer’s lifecycle. Customisation                                                              too, supply customised mattresses to
caters to not just physiological                    It is about time. It seems.                  retailers – as a candid Mr. Nitin Gupta
differences but psychological ones too                                                           from King Koil India also reveals.
– and with a real tangible product – not         Pebbles in the Nest
just a brochure.                                 But customisation costs. Not only to the           To add to that, there is a trial-period
                                                 customer who is still facing heavy-priced       that is a make-it-or-break-it rule of the
    “Fixtures and position of layers can         labels for purchasing custom-made               new game.
make a really big change in mattress             stuff, but also to the mattress-maker.
formation. We are always eager to guide          After all, it is a process that entails             Casper, gives both to the customers.
the end users about the properties and           special materials and special effort. The       It offers, along with the painless
functions of different materials used in         special manufacturing costs not only            purchase experience, a trial period of
mattress making. Therefore, we aim to            include the coils and layers needed in          100 days. And if not satisfied full refund,
fulfill these orders with our expertise          never-before varieties and assortments          Mr. Gourav Gulati observes. “The full
knowledge and to help these consumers            but also expenses of hand-made                  refund is the most motivating strategy for
get a mattress that fits them instead of         mattresses. Let us also not forget to           Indian Consumer, let’s not forget Amazon
16            Cover Story

                                                                                                What brands expect
                                                                                                from retailers
                                                                                                1. Retailers have to educate
                                                                                                   consumers about the materials
                                                                                                   used in the mattresses, new
                                                                                                   technologies incorporated in
                                                                                                   these materials, their feel,
                                                                                                   longevity etc.
                                                                                                2. Retailers     should    educate
                                                                                                   consumers on the role of
                                                                                                   mattress and pillows for sound
                                                                                                   sleep.
                                                                                                3. Retailer     should     provide
                                                                                                   important      feedback     and
                                                                                                   suggestions that they receive
                                                                                                   from the consumers.
                                                                                                4. Retailers should share buying
                                              “Internationally there are about six to eight        behaviour of consumer time to
  Customisation of sizes                      standard sizes; and brands improvise their           time.
  in Indian mattress                          production with least wastages due to
                                              standardisation. This has been possible
                                                                                                5. Some of the mattress retailers
                                                                                                   also sell furnishing. When
  industry is a major                         due to strong furniture associations to              a customer is looking for a
                                              create beds of standard sizes, which looks           mattress retailer should not
  problem which brings                        absent in India.”                                    divert his attention to buy a
  a lot of growth- and                                                                             furniture.
                                                 On the difficulty level for a
  opportunity-resistance                      manufacturer, Mr. Tushaar Gautam                but once they leave their negative reviews
  for supplier players in                     dismisses some assumptions. “There
                                              are some opposing forces playing
                                                                                              about the product, rest of the prospective
                                                                                              buyers become alert. And today customers
  the industry                                at each other. The time constraint              shop only after reading reviews.”
                                              that most customers give in the way
                                              they demand mattresses – certainly                  Mr. Daveed Kuruvilla feels that the
positioned itself in India highlighting       makes it a little difficult for a player to     onus of identifying a sales-gimmick
‘Hassel Free Returns & Refund’, and           customise. But the whole industry is            falls on the customer. “So for a brand’s
Flipkart, too, did the same. And this works   designed to customise because of the            marketing to be called out as a sales-
perfectly for Indians.”                       way production can work. The basic              gimmick with no real differentiation in their
                                              module is there but certain attributes of       product, the customer will need to have
    In the assessment of Mr. Nirbhay          customisation like layers, thickness etc.       done enough research and comparisons to
Gupta, even though there is a colossal        can be built upon this. Manufacturers           see a product for what it is. If the customer
urge for customised mattresses, not           are already customising based on size           knows what’s on the market they won’t
many brands are offering customisation        and all we need is some other aspects           fall for great marketing of an inferior
besides basic size customisation. To          that can be blended in.                         product.”
quote around five to ten percent of
orders are up for customisation and              In any condition, it is important that           This hints at a big role that industry
not much development is happening in          customisation is sincere, authentic,            players need to fill in that will not just
the mattress industry related to these        enduring and definitely, not something          sell customised mattresses but ensure
demands. “Only size customisations are        that comes across as another                    that people see it as a valid product
being catered to.” Just like what retailer    sales-gimmick.                                  proposition and need-fulfillment. This
Kalra told us at the onset.                                                                   is more than a functionality or a frill. It
                                                 To manage this 100 percent is not            is a about a psychological need that has
   Customisation of sizes in Indian           possible but yes, today people are smart        to be addressed sincerely and smartly. It
mattress industry is a major problem          buyers, Mr. Gourav Gulati agrees. “They         will, first, need a lot of homework; and,
which brings a lot of growth and              don’t simply buy anything, they know they       then, quite some legwork before one
opportunity resistance for supplier           have the rights to express their experience     can confidently say that a customised
players in the industry. Mr. Nitin            with the brand. There may be one or two         mattress is up for grabs in one’s product
Gupta from King Koil India contends,          or say few people, who can be dodged,           menu.
Cover Story                         17

       Internationally there
       are about six to eight
standard sizes; and brands
improvise their production
with least wastages due to
standardisation. This has
been possible due to strong
furniture associations to
create beds of standard
sizes, which looks absent in
India.

                Nitin Gupta,
                Director-Retail and Channel
                sales, King Koil
                                                  Mr. Daveed Kuruvilla also weighs in                The young population
                                              this factor as a pronounced one. “In order
                                              to encourage customisation of mattresses,
                                                                                                     in our nation is so
                                              we would first need to encourage educated        preoccupied with chasing
Before you ask for Jeeves                     customers. Customers would have to know          success that it ends up
The presence of unorganised players           about the materials used in mattresses,
and lack of quality standards in the          new technologies incorporated in these
                                                                                               ignoring sleep quantitatively,
industry make the situation harder            materials, their feel, longevity, etc. As        and more importantly,
to navigate, as hinted at by some top         mattresses are a low-frequency purchase          qualitatively.
industry players.                             this makes it challenging to have customers
                                              who are well-versed and have information                         Yatin J Patel,
    Mr. Nitin Gupta from King Koil            enough to effectively customise their own                        a board-certified pulmonologist
India opines that till the time furniture     mattresses.”
association in India really focus on
this standardisation, almost nothing              We should first start encouraging
is possible at the level of mattress          people to know about mattresses before
manufacturers. Needless to say, a             we can encourage them to customise,
government intervention looks like a          he suggests. “That said, there is already        anything to experience something new and
best solution to enforce such move.           a niche in the Indian market made up             valuable.”
                                              of customers who know exactly what
    More importantly, for customisation       they want and look for custom-made                  The issue, of course then, is our lack
to truly work, players as well as             mattresses, and we are glad to help them         of focus and our ignorance as to the
customers would have to rise to a new         with their specific needs. After all we are in   importance of sleep in helping us live
mindset and responsibility. Dr. Saroj         the mattress business to help people sleep.”     a full and a productive life, Dr. Yatin J
Sharma and Dr. Yatin J Patel both are                                                          Patel reminds. “Once you have made that
emphatic about the dire need for better           Gaps, in the assessment of Mr.               commitment to getting a sound sleep of
sleep hygiene and awareness in today’s        Tushaar Gautam, are starker around the           seven hours, then you can look for products
stress-and-addiction-heavy lifestyles.        communication that happens between               that can help you achieve that.”
People need to know how they sleep            channels and customers. “Point-of-
before they work on how to sleep better.      sale is a crucial 25 to 35 minutes of               Providing healthy sleep is the
                                              communication window where a lot can             root cause for mattress industry to
    Even Mr. Mahendra Pokharna, who is        be achieved ahead.” But he hopes that            consider customisation. As Mr. Tushaar
from the retail side, is worried about this   customisation can help the industry in           Gautam puts it industry has look at
huge lack of awareness that customers         creating a niche market in the next four         customisation is an opportunity for
exhibit when it comes to good sleep.          to five years.                                   future growth. Because, yes, what
“People do not know when to change the                                                         can be more valuable than a mattress
mattress. To introduce experience stores          These hopes resonate well with               that has been made specially for one’s
would a great idea, but basic awareness       Mr. Gaurav Gulati’s optimism too.                sleeping whims, fancies and fantasies!
is something that needs to be first worked    “India is an emerging nation with a lot          Only one thing - A mind who can create
upon.”                                        of cash flow; buyers are willing to spend        such a mattress!
18            Feature

Building a better bed
The role of manufacturers and suppliers

D
         ue to urbanisation, rising
         disposable incomes and health
         issues, the Indian mattress
         market is growing at 10-15
percent annually. Of this, the organised
market share constitutes only 30
percent. However, now it is expected
that the market share of unorganised
mattress players which is led by street-
side shops and the local operators will
drop drastically in the coming years.
This is because Indians are increasingly
demanding branded and good quality
products. In fact, the mattress/bedding
market is gradually transitioning from
largely unbranded to branded market
which is expected to grow at a CAGR
of 13 percent over next five years to           The manufacturers and                            Well, this way, the manufacturers
constitute nearly 40 percent of the                                                           take all the possible steps to stay
market by 2022.                                 raw material suppliers                        abreast with the market trends, their
                                                are working together                          customer expectations and needs to
    In addition to people demanding good                                                      manufacture the best mattress product.
products, another reason behind this            fruitfully in order to
trend is that of lately, the manufacturers
and raw suppliers are working together
                                                serve the best to the                         2. Adoption of new technologies:
                                                                                              The ultimate goal of any mattress
fruitfully in order to serve the best to        customers                                     manufacturer is to ensure that the
the customers. While manufacturers are                                                        consumer gets all the comfort that
adopting innovative technologies and                                                          he desires from his/her mattress. It is
methods to bring out a better product,        has given rise to various lifestyle diseases.   for this very reason that reliable and
the suppliers by supplying quality raw        Also, these days, people have to work for       top-notch manufacturers in India are
materials and machinery are ensuring          longer and this involves sitting for hours      concentrating on new technologies in
that the manufacturers are able to do.        together. All these issues have resulted in     order to make better mattresses. Thus,
                                              various sleep problems. In such a scenario,     the industry has naturally progressed
    So, this article would explore the        as manufacturers, we take it as our duty        from unorganised cotton and foam-
individual contribution of manufacturers      to give all the comfort to the customers        based products to quality products with
as well as suppliers and their relationship   while they sleep. For that, we engage with      an infusion of technology. Some of the
in bringing out the best mattress product     the customers and ask them about their          latest technologies incorporated by
in the market...                              health problems and then look into the          manufacturers to build a better product
                                              best solutions that we can offer them.”         include:
Strategies adopted by the
manufacturers                                      Mr. Hemant Gupta, Director,                a) Combination of innerspring and
1. Understanding customer’s                   Aerocom Cushions Pvt Ltd, shares a                 memory foam: The mattress that
   requirement:                               similar thought. He avers, in addition             is prepared by combining these two
The first and foremost thing that             to understanding the customer’s needs              types of technologies is known as the
the manufacturers are doing is                and suggesting the product that would              hybrid version and is considered best
understanding the need of the market/         suit them, we ensure that they get such            for all kinds of sleepers. While inner
customers very well. Kundan Kankariya,        products at an affordable price. We                spring give better comfort (support)
Director, Kontak Comfort Products Pvt         ensure that the product from inside and            and sleep to the consumer, the outer
Ltd, notes, “Over the years, lifestyle of     outside is of good quality and has a good          layer made from memory foam gives
people has changed drastically and this       life.”                                             better pressure relief and comfort.
20           Feature

   These days, new memory foams are            elevation of the mattress can also be    raw materials that are not only good but
   also being used which have an open          controlled with the help of the same     perform specific functions, have unique
   cell structure and this reduces heat        remote control.                          features and offer something extra. Hence,
   retention, improve airflow and keep                                                  the raw material suppliers are constantly
   the foam cooler. Even gel memory         3. Increased usage of organic material:     working towards supplying such materials.”
   foam is increasingly being used by       Since past several years, mattresses
   the manufacturers as it provides         were made using polyurethane foam, a            He adds further, “What is heartening
   enhanced pressure-relief and this        petroleum-based material which emits        to note that now not only big brands are
   is good for patients who have joint      volatile compounds that are harmful         demanding quality materials but even local
   pain issues. Few manufacturers are       to both humans and the environment.         mattress manufacturers are demanding
   also making use of variable pressure     Now, with the growing awareness             them. They also want technologically
   foaming technology which negates         about the environment, customers are        advanced materials and not just run-of-
   the need for chemical blowing            demanding mattresses that do not harm       the-mill stuff. This is a good sign for growth
   agents.                                  the environment as well as humans           of the bedding industry as a whole.”
b) Temperature controlled mattresses:       and this is leading to manufacturers
   Few mattress manufacturers in the        using organic methods and material
   country are also coming up with          for making mattresses. This is the            The new age
   temperature controlled mattresses        reason that materials like eco-latex
   which are quite popular in other         and bio-cotton are increasingly being         machinery and
   nations. A perfect fit for India's hot   used. Mattress like organic innerspring       materials are resulting
   and humid climate, such mattresses       mattress and plant-based memory
   allow their temperature to be            foam mattress are gaining prominence          in increased production
   controlled with the help of remote
   control and thus ensure good sleep.
                                            and attention from the manufacturers.
                                                                                          and improved
   Not just the temperature but the         4. Paying attention to mattress cover:        manufacturing
                                            These days, manufacturers are not only
                                            paying attention to the inner materials       operations
                                            and technology but they are focussing
                                            on mattress cover technology as well            Not only the raw material suppliers
                                            which is also very important for the        but even the machinery suppliers for
                                            comfort and health of the customer.         the bedding industry assume a lot of
                                                                                        importance in contributing towards
            The mattress industry in           Above are a few strategies that are      making the best product. This is because
            India has a lot of growth       adopted by the manufacturers these          an efficient machine which is highly
            potential. The spending         days in building a better product and       automated and fast can manufacture
  power of customers is increasing.         expect support from the suppliers. Here,    increased number of products which
  In fact, today, even an average           comes the importance of raw material        are of good quality and save time,
  Indian customer is willing to spend       and machinery suppliers.                    money and reduce wastage. Hence, the
  a considerable sum for a good                                                         machinery suppliers are also constantly
  quality mattress. Keeping this            Strategies adopted by the suppliers         engaged in coming up with improved
  in mind, the manufacturers are            Just like mattress manufacturers, even      machines which can help the mattress
  increasingly coming up with some          the present-day suppliers have woken        manufacturers in developing products
  of the best mattresses that are           up to the fact that it is necessary to      that are of supreme quality.
  made using innovative technology.         supply the best quality raw materials
  Well, not only manufacturers but          so as to ensure that the end-products       Relationship between the
  even the suppliers are making all         is good. Suppliers are also realising       manufacturers and suppliers
  the efforts to ensure that the best       that it is necessary to cooperate with      While the manufacturers strive hard
  product is manufactured.                  the manufacturers to see that they get      to come up with new solutions to give
  Thus, it can be definitely concluded      what they need in order to develop a        better products to the consumers, the
  that a good product can reach             good product.                               suppliers ensure that the best of raw
  the customer only with the joint                                                      materials and machinery is supplied
  efforts of the manufacturer and               Thus, in order to understand what the   to the manufacturers in order to help
  supplier. This presents dearth of         mattress manufacturers want, suppliers      them achieve their aim. Manufacturers
  opportunities for growth for the          actively engage with the manufacturers.     and suppliers can function in the best
  manufacturers as well as suppliers        Mr. Rajiv Khanna, Director, Shiv Techfabs   possible manner only when they work
  in India who can work together to         Pvt Ltd who is into mattress ticking        together towards a common goal
  build a better bed.                       fabric supplies business, says, “These      that is developing the best mattress
                                            days, manufacturers are demanding           product.
22   Feature

           There are various challenges faced by mattress industry
            in terms of quality, transportation, storage and getting
          distribution network right, that if solutions aren’t found in
                      time, could derail the growth story.
23

How challenging is distributing
bedding products from
manufacturing to distributors
ISSUES FACED & SOLUTIONS FOUND

T
         he Indian market is witnessing a      retail mattress sales.                     the competitiveness of exporters.
         shift from unbranded or cotton-
         based mattresses towards                  Brands    are    leveraging large          Another hurdle in standardizing
         branded mattresses. In recent         distribution companies to have omni-       shipping is a lack of prescribed size of
years, the average growth of Indian            channel presence. Today, typically,        mattresses as in western markets. This
comfort and bedding industry was               customers can buy mattresses on            lack of uniformity in Indian markets
10-12 percent per annum and this is            the website and also from third-party      puts an unnecessary burden on delivery
likely to grow at a CAGR of around 15          platforms such as Amazon, Flipkart,        logistics.
percent in the next 5 years. However,          Shopclues and Fabmart to name a few.
there are various challenges faced by          Many companies are setting up owned        Innovations to the rescue
mattress industry in terms of quality,         stores in key markets.                     With the e-commerce trend, the
transportation, storage and getting                                                       culture of try-before-buying direct-to-
the distribution network right, that if        Pain points                                consumer (DTC) model is on the rise
solutions aren't found in time, it could       Mattresses by nature are a bulky           posing logistics challenges. The ever-
derail the growth story.                       products and expensive, which is           growing popularity of Amazon Prime
                                               accentuated by a lack of affordable        model of hyper-fast deliver is putting
    Amidst all the roadblocks the industry     transport companies to handle them.        pressure on companies in terms of
is able to craft innovative solutions on the   This restricts companies from expanding    scaling their business. Customers
go, especially in packaging and shipping.      their markets geographically and forces    expect to get their product within one or
New age, internet savvy players have           them to run their own fleet of vehicles    two days.
adopted Direct To Consumer (DTC)               for deliveries thus adding overheads to
approach while traditional players             their operations.                              Companies like Casper in the US —
have mostly focused on expanding and                                                      which is now coming to Indian shores
strengthening their ground level multi-            Infrastructural bottlenecks also       — have shown radically new ways of
tier network. Evolution and upgradation        add to the tremendous strain. Loss of      packaging and shipping. Thanks to a
are evolving in real-time in retail touch      transportation time & transaction time     decade's old technique of compressing
points as well as technical innovations        at ports, land borders adversely affects   foam or mattress material to compact
helping to reach the market fast and                                                      forms, Casper was able to pack the
safe.                                                                                     mattress in a small box that can be
                                                 Over recent years, the                   delivered by players like Amazon. Once
     Spurred by overall economic growth,         sales channels for                       delivered, the pack would be unboxed
the logistics industry comprising                                                         to reveal a highly compressed mattress
road, rail, air and water — a $130               mattresses are shifting                  which would popup into its full shape
billion industry is expected to reach
$300 billion by 2020 — this growth
                                                 from bricks-and-                         slowly.

not withstanding, the logistics is the           mortar stores to online                     This whole process itself though
toughest nut to crack for the mattress                                                    slow and tedious, turned out to be "an
industry so far.                                 sales. It is estimated                   experience" customers loved to have.
                                                 that the e-commerce                      It was sheer serendipity. E-commerce
    Over recent years, the sales channels                                                 led mattress players since then
for mattresses are shifting from bricks-         channel claims around                    have taken to bed-in-a-box and the
and-mortar stores to online sales. It
is estimated that the e-commerce
                                                 10% of word retail                       "unboxing" phenomena to newer
                                                                                          heights. With this, the transportation
channel claims around 10% of word                mattress sales                           and last mile delivery was solved
24           Feature

but storage, inventory management
still required traditional solutions
discussed earlier.

Conclusion
Finished product distribution is a vexing
issue in any industry. It is more so in
the mattress industry given the size
of the product and the need for careful
handling due to expensive, fragile
material involved. While, traditional
players have evolved a good strategy
over time, the new age Amazon-
like, hyper-fast age requires new
solutions. While, e-com companies
have turned to optimize packaging and
shipping, there is still a huge scope
for improvement in better handling
distribution.

  Solutions
  1. Traditional players have shown the road to solving           5. Typically, traditional companies utilizes logistics
     vexing distribution issues. As demand increased,                infrastructure hired for the supply of raw materials
     the industry realized that it needed a better way to            to the manufacturing facilities for onward supply of
     optimize warehouse and order fulfilment operations.             finished products and foams to the
     Many companies prefer a logistics solution that would           distributors
     meet its business requirements and help it grow in the       6. Exclusive distributors are typically engaged in strategic
     unpredictable business-to-consumer space. Most often            proximity to the manufacturing facilities, which helps
     the solution comes in the form of a third-party logistics       reduce carriage expenses and minimize product
     (3PL) and warehouse management system provider.                 damage. Most distributors have been associated with
  2. E-commerce players have seen rising returns rate —              these traditional companies over a long time — mostly
     though lower than five to six percent lower than that           over 20 years or more. Extensive and well developed
     of the standard direct-to-consumer volume, it requires          pan-India sales and distribution network and retail
     attention, strategic insight, and an experienced logistics      dealers for home-comfort products.
     partner who can accept and reroute returns to the            7. The distribution network has to be well integrated with
     appropriate recipients. That's where 3PL partners come          the manufacturer’s IT platforms, that enables tracking
     to the industry's rescue.                                       secondary sales made by the distributors and dealers in
  3. A time-tested formula is to engage exclusive                    real time.
     distributors in strategic proximity to the manufacturing     8. The new GST regime has ensured that warehousing has
     units, helping reduce carriage expenses and minimize            got a leg up and it is easy to transport finished products
     product damage.                                                 across borders. While, traditional way of distribution
  4. A large sales personnel actively engage with key                was to establish manufacturing plants close to the
     distributors thus ensuring the distribution channel             target market, with warehousing and efficient 3PL
     is well oiled and a positive feed-back loop is created.         services available, a new model is emerging — using
     Such a deeply integrated network of distributors and            efficient warehouse management to distribute and 3PL
     the companys' sales force help in aggregating demand            as a JIT partner. It needs to be seen as to how efficient
     signals and right-sizing the production and inventory.          this model will turn out, though.
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