4. May 2016–
While it may seem that the mattress industry is an unsexy topic, the numbers coming out of mattress startups are not. The growing trend began in the States in 2014 and has since exploded. Casper, a startup that is coming to Germany soon, sells mattresses online and doesn’t charge for returns. It’s now worth some half a billion dollars and has strong brand power. It’s even caught the attention of Leonardo Di Caprio and Maroon 5 frontman Adam Levine who invested. It joins a host of other e-commerce sellers, which are boasting big returns.
Mattress startups: reasons for success
It’s not hard to see why these companies are doing so well. The customer experience of buying a mattress – something everyone has to do at one point – was poor. People had to go to a showroom, test it out in front of a pushy salesman, pay a large sum and then get it up their staircase. The e-commerce companies offer delivery, lower costs and the chance to try out mattresses and return if not satisfied. With Caspar you can even try it for 100 days. But the evidence is that most people are not returning.
Casper is not the first or only startup making waves in the industry. Tuft & Needle and Leesa are two American sellers who are doing well. European companies Muun, Bruno and Eve are other websites with a similar offer. Earlier this year Eve announced a 3.5 million funding round and estimated growth at 35 percent per month. Its idea is to make mattresses a more personal product.
Focus on Germany
Munn estimates that Germany’s mattress market is one billion Euros. With high margins and low returns, companies that capitalize on this can make big money. So it’s no wonder that Casper has its sights set on the German market. Which company will beat the competition depends on customer experience, quality of product and price – but while the race has begun, it’s still not clear who will come out on top.