Even with all the competition, the mattress sector is expected to see staggering growth — expanding to over $43 billion by 2024, according to Transparency Market Research. That explosive growth is attributed in part to the fact that consumers, on average, replace their mattress every 7 to 8 years, according to data from the Better Sleep Council (BSC).
The rapid expansion of the sector has created opportunities for companies like Nectar, given that at least 27 percent of consumers are open to buying mattresses online, the BSC noted.
Needless to say, business is booming. In less than a year after it first opened its doors, Nectar moved more than 50,000 beds, and generated more than $35 million in revenue, the company told CNBC in an interview last year.
“Our business is fastest growing, it is on track to be the lead mattress. We expect to produce about $300 million in profit. We are only two years old but we have over 100,000 customers,” Schmeizer told CNBC.
Schmeizer also issued a bold prediction: He believes that traditional brick and mortar mattress shops will eventually be forced to shutter, as online retailers exert a similar pull on the industry as Amazon has on retail.
“It is very hard to be profitable when you have to pay lease costs and staffs cost, when consumers can find online channels that are able to offer a better price because those companies do not have those expenses,” the CEO told CNBC.
“Market demand for mattresses is growing year over year because companies are able to offer better value than before,” said Schmeizer.