$1.5 Billion Dollar Bedding Retailer Set To Expand In New Zealand

The expansion of one of the world’s largest mattress retailers in the New Zealand market is set to boost consumer choice, according to the regional head of the company.

German direct-to-consumer bedding retailer Emma Sleep, which has sold more than six million mattresses across 30+ countries, and last year generated over $1.5 billion in revenue entered the local market in 2020.

The company has grown rapidly in that time, with post-pandemic Kiwi consumers increasingly looking to digital channels to purchase larger and higher value household items such as beds.

Simon Baumgarten, Emma Sleep’s ANZ country head, says they are aiming to generate 10% of global revenue within New Zealand and Australia.

He says they are recording ‘triple digit’ annual growth within the NZ market and have already supplied mattresses and bedding products to over 10,000+ consumers since arriving here.

“The company grew by around 35% last year, however the rate of growth in New Zealand is significantly outpacing our global average.

“Our longer-term goal is to see the ANZ market account for a tenth of our annual revenue.

“We know that Australasian consumers tend to purchase larger beds than some of our other markets which helps drive a higher average revenue per capita in the region.

“In addition to millennials, we are seeing an older demographic purchasing mattresses from us through our online channel. This higher 65+ age skew is unusual compared to our other markets and increases the potential market size in New Zealand.

“As a result, we are investing to further expand our share here,” he says.

Baumgarten says we spend around a third of our life in bed, either trying to sleep or and yet we may only spend less than 10 minutes in a retail store before purchasing one.

He says most retailers won't allow the return of used mattresses for hygiene reasons so the bricks & mortar purchase process can be an expensive trial and error scenario for many consumers.

“The online distribution channel for large format furniture, including beds and mattresses, has advanced significantly in recent years.

“Mattress in a box vacuum compression technology has improved the portability of new mattresses by reducing the shipping volume by around 90% - an innovation which has helped the category grow rapidly online.

“Another key mechanism we have for reducing the perceived risk of purchasing a mattress online is a 120-day trial period, along with free delivery and collection if the customer changes their mind,” he says.

Baumgarten says through a charity partnership, any returned products are donated to local families in need.

He says international research shows that Kiwis get the most sleep in the world, an average of 8 hours and 4 minutes per night - second only to The Netherlands.

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