How Mattress Market Is Positioned in Vietnam?
Vietnam market has displayed a significant growth at a CAGR of ~% during the review period of 2011-2016. Growing demand from residential and commercial sectors in the country has amplified the size of the mattress industry in the country. The number of hotel rooms has increased with the launch of new hotels in the country in last 5 years. This has directly increased the demand for the quality mattresses in the country. Vietnam mattresses market has grown from USD ~ million in 2011 to USD ~ million in 2016. The production volume of the mattresses has also increased from ~ thousand in 2011 to ~ thousand in 2016. Also, growing brand endorsement and marketing initiatives by the companies in the country has increased the customer base of the companies. The average price of a mattress is around USD ~ in Vietnam. The mattress market in Vietnam has witnessed a dynamic change in the type of customers, players, and demand and mattress preferences.
In the initial phase of the market, majority of mattress sales has happened to the non-residential sectors including hotels, hospitals, guest houses and wedding halls but with the changing time and needs, the demand from residential sector has also increased. Moreover, the demand was usually from the urban areas primarily while rural areas contributing a small share. Owing to the balanced economic growth in the country, other regions of the country also began expanding. The exports and imports have also seen a significant rise depending on the demand among the people.
Which Type of Mattress are the Most Preferred Ones?
Vietnam mattress market manufactures variety of mattresses. The choice of mattresses depends on various factors such as comfort, health, affordability, climatic conditions prevailing in the country and a lot more. There are majorly two types of mattresses in the country based on the preferences of the customers including spring and latex mattresses.
Latex mattress has dominated the market in terms of revenues with the share of ~% in the 2016. Latex mattress is made from natural material that comes from the sap of the rubber tree and possesses elasticity. It is this elasticity which allows the mattress to conform pleasantly to the customers. A latex mattress is also naturally resistant to dust mites, mould and bacteria without the use of added chemicals; this has also encouraged the people to go for these mattresses.
There is a considerable demand for Latex mattresses because of its excellent air circulation which is provided by the open-cell natural structure of latex and by pinhole patterns purposefully created during manufacturing. This allows for good breathability, resulting in a comfortable sleeping temperature. Vietnamese prefer to buy latex mattress as they require a hard surface for sleeping.
The major companies selling latex mattress in the country are KYMDAN, Lien A Mattress and others. The price of latex mattress in Vietnam ranges from USD ~ – USD ~. The average life of latex mattress is 15 years.
Spring mattresses have added a share of ~% in 2016 in the revenues of the country. Households, hotels, hospitals and others mostly prefer to buy them.
Spring mattresses consist of coiled springs facilitating comfort and support. Innerspring mattresses offer more support and firmness to the user’s body. Spring mattress is more suitable for people with health issues like back pain, spondylosis and others.
They largely come with box spring. Individually wrapped, pocketed coils are standard features in ultra luxury bedding. The health benefits of this type of bedding include proper spinal alignment and pressure point relief.
People prefer to buy spring mattress as these mattresses are low prices, durable and provided better circulation.
In recent years, mattresses are being promoted on the basis of its ability to resolve health issues and offer a sound sleep. Rising awareness among the people regarding the role of a mattress in maintaining a proper health and for a good sleep also augmented the sales of spring mattress.
The major companies selling spring mattress in the country are Hava’s Mattress, Far East Foam and others. The price in Vietnam ranges from USD ~ – USD ~. The average life of spring mattress is 7-30 years.
Other mattresses include foam mattresses, coir mattresses, airbed, waterbed and other therapeutic mattresses.
which Sector Contributed the Most to Mattress Market Revenue in Vietnam?
Residential sector dominated the Vietnam mattress market in 2016 generating ~% revenue in the overall mattress market owing to the rising residential units both in urban and rural area and population of the country. The residential sector accounted for higher share than the hospitality sector in the country and hence the demand for mattress is more by the residential units compared to the hotel units. The residential projects completed in 2016 including Oakwood Residence, Ascott Waterfront and others have raised the demand of the mattresses. The families have been shifting to urban areas for jobs, education, marriage and various other reasons which have led to more demand of mattresses. Moreover, the family pattern has been changing from the joint families to nuclear families which further require more mattresses. The rate at which the residential sector customers change the mattress is higher as the purchases are frequent compared to the hospitality sectors which makes a positive impact on the residential sectors in buying mattress. The replacement period of the residential sector was observed to be ~ years compared to the hotels that have 10 years of replacement period. Increasing public awareness about quality mattresses and rise in disposable income of households led to a shift in customers’ preference in terms of brand. The population buying trend has shifted from local mattress manufacturers to branded mattress companies. Since the branded mattress is costlier, they contribute more in the revenue generation.
Hotel industry has contributed a share of ~% in the revenues of the mattress industry of Vietnam in 2016.
The hotel industry requirement for mattresses have been increasing owing to increasing number of hotels and rising number of rooms in the existing hotels. This segment demands various types of mattress depending on the type of room and services offered to the customers. Since the country is gradually emerging as one of the tourist destinations, the hotels are prioritizing at giving the best service to the tourists. As a part of this objective, they prefer good quality mattresses for their hotel rooms. The growing tourist arrivals are increasing the demand for luxury and semi-luxury hotels in the country. This has led to expansion of the hotels in terms of increasing the number hotel rooms and openings of new hotels. Hotel openings that took place in 2016 including Novotel Phu Quoc Resort and Hotel, Wyndham Legend Halong and Somerset Da Nang Bay made a positive impact on the mattress market due to the demand of different kinds of mattress.
What have been the Major Trends and Development in Vietnam Mattress Market?
Increase in Urban Population: The Vietnamese population has been moving from the rural parts of the country to the urban areas due to employment or job-related reasons, education purposes, marriage reasons, to have better living standards and quality of life and various other reasons. This shift has led to increase in the demand of residential area hence leading to further increase in the requirement of mattresses which has made a positive impact on the demand for the mattresses in the country. Rising industrialization, growing number of universities and offices in urban areas has encouraged the population to shift from rural areas to urban areas. The rate of urbanization was observed to be ~% during 2010-2015. Moreover, in the urban areas there has been a trend of families turning into nuclear families which has further increased the demand for the mattresses.
Increasing Demand for Quality Mattress: With the increase in technology, various types of mattresses have been introduced in the Vietnamese market including customized mattress, mattress for toddlers, waterbed, airbed and others. Elevated technology and variety coupled with the increasing marketing efforts by the mattress companies to enhance the knowledge of customers has triggered the Vietnam mattress market over the years. The growing awareness among the consumers has led to the market shift from a price sensitive lot to the quality sensitive lot.
Emerging Online Players: Online players consist of online retail shopping sites and apps offering various verticals and players exclusive to bedding and mattress. The leading online players selling mattresses in Vietnam are Alibaba, Tiki, Lazada and Vatgia.
The mattress players started their online websites for enhancing the consumer base and revenue generation including companies such as Hava’s mattress, KYMDAN, Lien A Mattress and others.
International Players in Vietnam Mattress Market: Vietnam mattress market is not only operated by the domestic players but the international players have also made their presence by entering into the space. Kingsdown is an international player operating in The Vietnam showroom carries Kingsdown bedding manufactured through long time licensee Far East Foam. Dunlopillo is also an international player which has been in Vietnam for past few years and has accounted for ~% of the revenue market share in the total Vietnam mattress market in 2016. Mattress licensing group Tharapedic International has also made an agreement with Hava’s Mattress co. ltd. in Vietnam in July 2017 with aim of strengthening its presence in Southeast Asia region.
Tourism: Tourism industry is growing in Vietnam which has made a positive impact on the mattress industry in the country. This has increased the demand for hotels in the country which has directly impacted the sales of mattresses in Vietnam. The hotel beds in Vietnam have increased from ~in 2011 to ~ in 2016.
Growing Residential Units: The residential units in Vietnam have been increasing over the past few years owing to the Housing law and law of Real Estate Business which has been effective from July 2015. The growing number of residential projects due to rising infrastructure has led to increase in residential units further requiring bedding accessories which will make positive impact on the Vietnam mattress market.
How the Competition is Prevailing in Vietnam Mattress Market?
Vietnam mattress market is concentrated with few domestic players having the major market share including KYMDAN, Hava’s Mattress, Lien-A Mattress and Far East Foam Vietnam owing to the ethnocentric customers in the country.
International players include Dunlopillo, Therapedic and Kingsdown.
KYMDAN is the leading player in Vietnam mattress market operating since 1954 and had contributed highest revenue market share in 2016 which shows that it makes difficult for other mattress companies to enter and operate in the space due to its brand name.
The competing parameters of the mattress players in the country include the decision making factors such as price, quality, brand name, warranty, delivery and others.
The mattress companies in Vietnam have various distribution channels including stores, agents and dealers and reach of the firm is directly proportional to purchase of the product.
What is the Future Outlook for Vietnam Mattress Market
Vietnam mattress market is expected to grow at a five year CAGR of ~% during the period 2016-2021 owing to the increasing demand of mattresses by the population. The growth is anticipated to be due to the increase in the awareness in population about the requirement and use of type of mattress, urbanization, rising income, increase in the number of companies offering the products and elevated variety of mattress. The number of households is rising year on year owing to increasing population and increasing nuclear families. Rising awareness coupled with the rise in hospitality sector will lead to a positive impact on the mattress market in the country. Therapeutic mattress products hold a wide opportunity in the Vietnam market in future owing to the rising back problems in the country.
Companies Cited in the Report List of Companies Companies Covered in the Report
Hava’s Mattress Vietnam
Lien A Mattress Major Players in Vietnam Mattress Market
Far East Foam
Key Factors Considered in the Report
Comprehensive analysis of Vietnam Mattress Market and its segments
Listed major players and their positioning in the market
Identified major industry trends in last few years and assessed the future growth of the industry
Porter’s five force analysis on Vietnam Mattress Market
Value chain analysis of Vietnam Mattress Market
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Ankur Gupta, Head Marketing & Communications