CNBC published this video item, entitled “Why Mattresses Are Expensive” – below is their description.
In the past decade, the mattress industry in the U.S. has undergone significant change with the emergence of popular direct-to-consumer brands like Casper, Purple and Saatva. As many as 225 e-commerce companies started during this time, challenging both the brick-and-mortar business model and legacy names Tempur-Sealy and Serta Simmons. The DTC upstarts eliminated the overhead costs associated with middlemen and expensive storefronts, allowing them to offer lower prices. However, inflation and higher commodity prices took a toll on more than 100 of the newcomers, forcing them to shut down. Meanwhile, Tempur-Sealy and Serta Simmons, which hold about 60% of market share, had a tough year in 2022. Change may have come to the industry, but revenues haven’t climbed to the record heights of $10.2 billion in 2013.
Chapters:
00:00 — Intro
01:15 — How beds are made
04:13 — Retailers
07:45 — Rise of DTC
Producer: Darren Geeter
Senior Managing Producer: Tala Hadavi
Animation: Jason Reginato, Christina Locopo, Alexander Wood
Additional Footage: Casper, Tempur Sealy
CNBC YouTube Channel
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