In recent years, more than 300 million Chinese people have sleep disorders, and more and more people are paying attention to the importance of deep sleep. With the rise of the sleep economy, the sales performance of Xilinmen, a mattress brand, on Double Eleven is very impressive, ranking first in the mattress category on the entire network, and winning the favor of hundreds of millions of women. Why is Xilinmen, a mattress brand, leveraging billions of dollars in sales? Market, what is it?
Wan Ling is a pretty little girl. She is best known in her circle of friends for her insomnia. She has suffered from insomnia for 10 years. During the most severe period, she would spend the whole night with her eyes open. Sleeping pills worked at first, but then they had no effect even if the dosage was increased. Years of insomnia even caused her to have auditory hallucinations. She swallowed dozens of sleeping pills in a panic. This time she was sent to the hospital for gastric lavage, which made her colleagues stay away from her. She didn't know how to express her pain to others. Frequent insomnia had caused her to suffer from moderate depression and even made her think about suicide. After a diagnosis and treatment by a doctor at Anding Hospital, she was drawn into a group called the "Bipolar Disorder Mutual Help Group." Only after joining the group did she realize that there were many young women like him who had frequent insomnia. Almost 80% of this group of 300 people are young women under the age of 30. In fact, women seem to have been dealing with sleep disorders their entire lives. During the menstrual period, hormonal changes affect the structure of a woman's sleep. In addition, psychological factors that change with ovarian hormones also affect women's sleep. By menopause, women are twice as likely to suffer from mood disorders as men. CCTV's "China Economic and Life Survey" program at the end of 2020 found that the proportion of women with insomnia is higher than that of men, with 56.44% of women feeling that they have less sleep; in terms of age, among those who feel that they have less sleep, the proportion of people aged 36-45 Highest. A report released by Dutch researchers in July showed that after surveying about 1.1 million Dutch, British and Americans using more than 30 research projects on sleep, it was found that the proportion of women with insomnia in the above three countries was higher. , the amount of medication for insomnia is also greater than that of men. In a sense, insomnia has become a major problem in society and deserves everyone's attention. Survey results from the Chinese Sleep Research Association also show that the incidence of insomnia among Chinese adults is as high as 38.2%, and more than 300 million Chinese people have sleep disorders; the just-released "2021 Xilinmen China Sleep Index Report" pointed out that the average sleep duration of citizens in 2020 was 6.92 hours , the proportion of people who often suffer from insomnia has increased to 36.1%, among which young people have more prominent sleep problems. 69.3% of the "post-90s (including post-95s and post-00s)" will fall asleep after 23:00. Interestingly, because the proportion of women with insomnia is higher than that of men, and because women hold most of the financial power in households, the spread of insomnia in Chinese society has quietly boosted the development of the sleep economy.
1./ Insomnia Women and the Rise of the Sleep Economy/
There are some young housewives in Wan Ling’s group who have become stay-at-home mothers early. Their methods of coping with insomnia are: Wanling felt ashamed. Among them is Xiao Xu, whose child is three years old and has just entered kindergarten. Whenever she has insomnia for more than three days, she goes to see a psychiatrist. At the same time, she starts looking for various bedding products in major shopping malls and carefully compares them. . Wan Ling discovered that this full-time housewife was very familiar with major bedding brands and new product technologies and advantages, and her family was also the most diligent in changing bedding products. Whether it's sheets, quilts, pillows, or even mattresses, their home will replace some of them almost every two or three months. Wan Ling also asked her, but the stay-at-home mother said that she didn't know why she developed the habit of changing bedding whenever she had insomnia. And she also found that some new bedding products gave him a peaceful sleeping experience, allowing her to quickly overcome the problem of insomnia. This stay-at-home mother is also very superstitious about bedding brands. The mattress must be Xilinmen, the pillows are especially American Binger, and the four-piece bed set must be Delphine. Wan Ling also asked, but the other party's answer made her dumbfounded. The reason was that the other party felt that these brands of bedding products could bring her good luck in sleeping. And this kind of behavior is normal in many families. Interestingly, the emergence of social insomnia has triggered an explosion in the bedding market. This is called sleep economy. Benefiting from strong consumer demand, the sleep product industry has ushered in a trillion-dollar market growth.
In a sense, the current booming sleep economy is actually driven by the core needs of consumers with poor sleep quality, and what they particularly want is the experience of using bedding products that these manufacturers are trying to satisfy. Precisely because these user experiences are constantly close to consumer needs, the sleep economy has gradually become an important part of the country's consumption upgrade. The just-released "2021 Xilinmen China Sleep Index Report" shows that the market size of my country's sleep products industry will reach more than 400 billion yuan in 2021. If it develops at this growth rate, the entire market size will exceed one trillion yuan in 2030. At the same time, the report shows that the number of registered sleep-related companies in my country has increased significantly in the past five years, with 62% of related companies established within five years. From 2018 to 2020 alone, more than 1,400 new sleep-related companies were registered in my country. Where there is demand, there is a market. Nowadays, from traditional products such as melatonin, sleep pillows, and sleep aid aromatherapy, to "black technology" sleep bracelets, insomnia patches, sleep sprays, sleep speakers, etc., an endless stream of products have opened up the "sleep" world. Economy" has a greater space for imagination. In the group, Wanling saw more than once people discussing various products such as pillows and quilts to aid sleeping. Some products are so imaginative that they can be made into the shape of your favorite idol for girls to hold and sleep on. There is also replaceable lavender essential oil, which can promote sleep from aspects such as vision, taste, and feeling. It has actually become a hot item on Taobao. And precisely because of the strong demand, more and more businesses are beginning to focus on this market, and all kinds of products that are only imaginable and impossible are emerging in an endless stream. Wan Ling once tried a "Sleep Baby" that is said to be able to help you sleep when you hold it in your hand. The results were mediocre, but it did not prevent this product from occupying the first place in Douyin's sub-category. In addition, artificial intelligence has also been introduced into this field, and "AI+sleep" has become the latest model for people to pursue high-quality sleep. From watches to monitors, various products can analyze the user's sleep situation and recommend various products. A sleep aid that seems effective. This has become a rapidly developing large market after consumption upgrades. Crucially, this series of situations shows that bedding or sleep products, which are traditionally regarded as the post-cyclical real estate industry, are now under the background of a series of real estate regulations such as housing for housing and not for speculation, stabilizing land prices, stabilizing house prices, and stabilizing expectations. Nowadays, its various development trends no longer “response” to the real estate industry.
2./ No longer relevant to the real estate cycle/
Now it is said that the sleep economy has nothing to do with the real estate cycle. This is the actual situation of China's economic development and the increase in the urbanization rate. A new conclusion, and this conclusion is supported by actual data. According to data released by the National Bureau of Statistics, the Circulation Industry Development Department of the Ministry of Commerce, etc., the national housing prosperity index in September 2021 was 100.74, which has been declining continuously since February; however, the national building materials and home furnishing prosperity index (BHI) has gradually increased. In this It reached a monthly high of 138.63, continuing to maintain an upward momentum. The gap between the two originally synchronized indexes is gradually widening.
In fact, this is understandable. The decline in China's real estate index is essentially due to oversupply at the market level. Coupled with the state's suppression of speculation and promotion of healthy development in the financial sector, this industry that once drove the development of the national economy has entered the stock market. In terms of urbanization, the urbanization rate in first-tier cities has approached 90%, the urbanization rate in second-tier cities has reached 75%, and the urbanization rate in third- and fourth-tier cities is between 50% and 60%. That is to say, except for some first-tier cities, the urbanization rate has reached 75%. In most second-tier cities, commercial housing is already saturated or even oversupplied. This also shows that the real estate industry has moved from the incremental era of development and sales to the stock era of second-hand housing sales and service operations. However, it is precisely because of the explosion of people's demand for high-quality life such as second-hand housing sales, decoration, and secondary decoration, that the market share dominated by improvement demand is gradually expanding and replacing new house decoration, becoming the core of the growth of the home decoration market. strength. This has also allowed home furnishing companies that focus on the sleep industry to generally see performance improvements. In fact, when urbanization reaches a certain stage, the sleep economy will inevitably break away from the real estate cycle and change. Because urbanization promotes rapid economic growth, it has entered a positive cycle of its own development. The last country to fully realize urbanization was the United States, and the relationship between the development of the sleep economy in the U.S. market and the real estate cycle can indeed bring certain reference value to all related companies.
Since 1999, the proportion of new home sales in the United States has always been less than 15%. It is a typical stock market. Mattress sales are mainly driven by second-hand housing transactions, rentals, and product upgrades. The mattress market has grown from 1.37 billion in 1982. USD grew to USD 10.9 billion in 2020, with a compound annual growth rate of 5.6%. During this period, except for the bursting of the Internet bubble in 2001 and the subprime mortgage crisis in 2008-2009, solid growth was maintained in the remaining years.
With the increase in residents’ income, increase in mattress unit price, and shortening of replacement frequency, even if the urbanization rate in the United States remains at the same level almost all year round, the mattress market in the United States can still maintain rapid growth, indicating that mattresses The sleep industry, such as soft furniture as its core, does not vibrate at the same time as the real estate cycle, and has even completely embarked on an independent development path of its own. It should be noted that the urbanization rate in the United States was 64% in 1950, while my country’s urbanization rate in 2019 was only 60.60%. According to the "2020 Annual Report" of Xilinmen, "China's No. 1 Mattress Stock", in the "National Population Development Plan (2016-2030)", my country is expected to achieve the goal of 70% urbanization rate of the permanent population in 2030. According to the general law of urbanization development, my country will still be in the stage of rapid urbanization in the next ten years. As the urbanization rate increases, the penetration rate of mattresses is expected to further increase. At the same time, per capita disposable income has also grown rapidly in the past decade. In 2019, per capita disposable income was 30,733 yuan, exceeding 30,000 yuan for the first time, a year-on-year increase of 8.9%. In addition, internal circulation, dual circulation, poverty alleviation, consumption upgrading, etc. have also promoted people's pursuit of a better life to some extent, resulting in further upgrades in mattress consumption and an acceleration in the frequency of updates. Against this background, the sleep industry has essentially found its own "cyclical line" that is not related to the real estate cycle, and has re-established a new development pattern.
3./ The core of the sleep economy is the mattress /
In terms of the sleep economy in a big way, in fact, what women buy most is bedding. As for bedding, the most core expenditure for a family should be the mattress. This market segment has become the leader in the sleep economy due to its rapid development. The "2021 Xilinmen China Sleep Index Report" shows that from 2002 to 2019, China's total mattress consumption increased from 30.6 billion yuan to 76.8 billion yuan (CAGR is 12.2%, approximately US$11.5 billion), with a growth rate of 13.1% in 19 years. %, has surpassed the United States to become the world's largest mattress market, and in 2022, the size of this market is expected to reach 100 billion. In fact, mattresses are imported products and were first introduced by overseas brands such as Serta and Simmons. Domestically, excessively high prices may have limited the market share of overseas brands; while domestic companies have gradually built a localized full industry chain starting from OEM/ODM. Today, leading brands, especially Xilinmen, have most of their own core technologies ( Such as support layer core technology, independent pocket spring technology, etc.), product capabilities can compete with overseas brands. According to ISPA data, my country has surpassed the United States to become the world's largest mattress market. However, there is still room for continued improvement in mattress brand penetration, and demand for updates continues to be released. It is expected that China's mattress market size will reach 103.6 billion yuan in 2022. In addition, research data from Pan Home Furnishing Network from 2014 to 2019 shows that the total number of stores of the six domestic brands Xilinmen, Mousse, Gujia, Chivas, Dream Lily, and Suibao was 5242/8004/11393 respectively. During the same period, the foreign brand 3S+Gold The total number of Kerr stores is 668/2330/2925. Domestic brands have taken the lead in terms of outlet density. The share of leading listed brands such as Xilinmen, Manhua, Gujia and Dream Lily continues to increase. The key is that Xilinmen has an average annual net increase of 535 stores from 2016 to 2020, and plans to add 800-1,000 new stores in 2021. With high-quality large dealer resources and high-quality store locations in KA stores, large brands have taken the lead in seizing them. Small brands want to It will be very difficult for latecomers to rise. This actually means that the existing mattress market has entered the strong and strong model. It is no exaggeration to say that in the mattress market, as more and more big-brand products are developed and introduced to the market, consumers' choices will gradually focus on these leading brands. On the other hand, the rise of the sleep economy has brought new opportunities to the mattress market.
With the increasing emphasis on sleep quality and the replacement of old mattresses, consumers are increasingly willing to replace mattresses, especially comfortable mattresses. According to the "2021 New Mattress Consumption Trends Report", 17% of consumers surveyed have mattresses at home that are more than 10 years old, while the 16-year mattress replacement period in the United States has been shortened to 8 years; at the same time, 47 % of people said they have decided to change brands or have plans to purchase them, and 22.2% want to change mattresses but have not yet taken action. Coupled with the rise of national trends and the emergence of new consumer trends, more and more consumers are beginning to consider domestic mattress brands, which has laid the foundation for the explosion of domestic mattresses.
4./ The leader is happy/
In fact, after the arrival of the national trend, these domestic brands have adjusted their strategies, especially "China's No. 1 mattress stock" Xilinmen. The representative domestic leading brands continue to seize the share of foreign investment and regional brands with cost-effective price ranges (1,000-15,000 yuan). Among them, online channels focus on products priced between 1,000-3,000 yuan, targeting low-end products of small and medium-sized brands; online channels The Xiamian store focuses on products ranging from RMB 3,000 to RMB 15,000, targeting mid-to-high-end products from foreign and regional brands. Driven by market demand, the mattress industry has also begun to shift from manufacturing to intelligent manufacturing. According to public data, as of May 2021, among the representative companies in China's mattress industry, Xilinmen has obtained 823 patents, Mousse 410, and Dream Lily 106. For example, the Smart 1 mattress of the leading company Xilinmen, after 9 years of research and development, can use smart technologies such as air springs, intelligent matching algorithms, and sleeping posture recognition sensors to enable the mattress to adjust the softness, hardness, and comfort level in real time according to the sleeping posture, improving 17 minutes of deep sleep. According to market feedback, consumers buy into the technical routes of Chinese companies. Benefiting from the rise of the sleep economy, leading companies have emerged in the mattress industry. Xilinmen, known as "the first mattress stock on the market", has developed extremely rapidly in the past two years. On the evening of October 27, Xilinmen Furniture Co., Ltd. released the "Third Quarter Report for 2021". The report shows that in the first three quarters, Xilinmen’s operating income was approximately 5.043 billion yuan, a year-on-year increase of 46.05%; the net profit attributable to shareholders of the listed company was 374 million yuan, a year-on-year increase of 107.47%. Among them, in the third quarter alone, Xilinmen achieved operating income of approximately 1.936 billion yuan, a year-on-year increase of 31.06%; net profit attributable to shareholders of listed companies was approximately 156 million yuan, a year-on-year increase of 13.42%.
In the past five years, Xilinmen’s revenue has continued to rise: 3.187 billion, 4.21 billion, 4.871 billion, 5.623 billion, and 5.043 billion respectively from 2017 to 2021 (the revenue in the first three quarters was close to last year’s full-year sales scale). Currently, Xilinmen’s market share in the domestic mattress industry is only about 5%. Compared with the US mattress industry’s CR5 market share of 66.3% in 2020, there is huge room for share improvement.
Among the evaluation reasons given by China Merchants Securities, Northeast Securities, Huatai Securities, etc., the continued rapid growth of Xilinmen’s own brand and the continued improvement of profitability have become the focus of attention. As a leader in the sleep industry, Xilinmen's self-owned brand retail business has achieved revenue of 3.271 billion yuan since 2021, an increase of 85% compared to the same period in 2020. Among them, offline business revenue was 2.587 billion yuan, a year-on-year increase of 89%; online business revenue was 684 million yuan, a year-on-year increase of 70%. Among them, in the third quarter alone, Xilinmen’s self-owned brand retail business achieved revenue of 1.279 billion yuan, a year-on-year increase of 58%. Good products must have a good market. Consumers who pursue sleep economy and sleep comfort are increasingly paying attention to Xilinmen's corresponding products.
With the increase in residents’ income and consumption upgrade in recent years, the mattress market is expected to emerge from a new trend with both supply and demand rising. During the Double Eleven period alone, Xilinmen’s official flagship store’s one-hour sales exceeded 200 million, and the overall sales on JD.com’s platform in the first 20 minutes surpassed the full-day sales on November 1 last year, ranking first in the mattress category on both major e-commerce platforms. The bedding category also achieved 93% year-on-year growth on the two major platforms.
In the end, during this year’s Double Eleven, Xilinmen won the first place in the mattress category of the three major e-commerce platforms, Tmall, JD.com, and Suning, and ranked first in the electric/smart, latex, spring, palm, and children’s 5 categories. Each sub-category also won first place.
At the same time, its 4Dpro mattress became the first new product in the Tmall furniture category to have sales exceeding 100 million; in addition, the sales of the soft bed soft bed category on the entire Double Eleven platform also exceeded 100 million...
This It’s the result of consumers voting with their feet.
These results prove that Xilinmen, as a leading company, has significantly led other companies in the industry. Of course, compared with the market share of well-known American brands, Xilinmen still has huge room for improvement. At the same time, the increase in the number of online purchases of mattresses and bedding products by consumers also shows that Double Eleven in 2021 is a shopping festival that brings everyone back to sleep. The rise of the sleep economy has also indirectly promoted consumption upgrades. In a sense, consumers, especially female consumers, have shifted their focus from meeting their own survival needs to meeting the needs of life comfort. Such changes will definitely give the sleep industry an opportunity to upgrade, and the future of the industry is promising. After all, a common saying in Western economics goes: Whoever controls women will control family purchasing power.