The Indian Retail Mattress industry is about INR 9000 crore and is expected to reach INR 14000 crore by 2021 growing at a CAGR of 9%. The demand for quality mattress and the growth of the organised players in this segment can be attributed to the increasing in income levels, growing health consciousness, rapid growth of the residential and hospitality segment and the foray of international brands. The Indian Online Mattress market is estimated to be around INR 290 crore by 2020 and is dominated by multiple online distributors and resellers and exclusive manufacturer’s website. Nearly 6000 online search are reported daily with consumers looking for ideal mattress.
Wakefit, a relatively new entrant in this segment, sells memory foam mattress exclusively through online platforms and has already been rated as Amazon Bestseller. The company focuses on research on sleep and spine support to create innovative products and has invented a breakthrough memory foam mattress that is appropriate to all body types, terminating the need to buy different mattresses for different members of the family.
Latika Bhargava of NewsBarons provides excerpts of an interaction with Ankit Garg, Founder and CEO of Wakefit who informs ‘There is lack of innovation and knowledge gaps between what consumers want and what companies are selling’.
NB: What is your current market share and growth aspiration?
Ankit: Wakefit dominates the online segment with a market share of an estimated 20%. This year, Wakefit’s projected sales have grown a quantum 2.5X from its first year of business in 2016. Wakefit receives daily web traffic of over 1000 people. At present, we have an estimated market share of 0.5% and are working towards acquiring about 5% in the coming months. The last few quarters, the company is growing at an average of 14% in terms of revenue, and has reported a monthly CAGR of approximately 9%.
NB: What is the USP of Wakefit?
Ankit: What sets Wakefit apart from its competition is our customer-oriented approach. We have set processes to take end user review and suggestions and incorporate these learnings into the product line. This approach underlines Wakefit’s entire operations across all its product categories.
Wakefit, through intensive research, has managed to create one mattress for all body types using memory foam. The product is impeccably created on the parameters of pressure distribution, weight distribution, foam testing and stress testing.
NB: Does B2B or B2C contribute higher to your revenue?
Ankit: Wakefit’s focuses on the B2C segment where users are more discerning and value conscious in order to make a good investment in sleep products. End users invest time in due diligence and research because it is an extremely personal decision and can have an adverse impact on their overall health.
NB: What is your geographical reach? What are your expansion plans?
Ankit: We have an integrated manufacturing unit in Bangalore and deliver across all locations in India, even to Leh Ladakh and Andaman & Nicobar Island. We plan to scale up our business by investing in infrastructure across the country to reduce delivery time and are also planning to further strengthen our brand presence across other tier 2 locations.
NB: Are you funded? Any plans to raise funds in near future?
Ankit: Wakefit is a bootstrapped company and we were profitable from the first month of our operations. We have invested over INR 1.5 crore in building assets since inception. We may look at raising funds this year.