Amazon Unveils Bed-in-Box Mattress, Gains Competitive Edge

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AmazonAMZN is leaving no stone unturned to sustain dominance in the global e-commerce market and disrupt the retail sector further on the back of its expanding product portfolio.

The company recently rolled out first ever AmazonBasics foam mattress which falls under the category of bed-in-box mattress. Notably, these kinds of mattresses can be easily rolled and folded into a box for the ease of delivery.

With the recent launch, the company has not only strengthened its total product portfolio but also significantly expanded its private label product portfolio. Notably, this portfolio comprises of more than 120 products across kitchen goods, batteries, clothing and electronics accessories categories.

We believe a growing product portfolio will aid the company in enhancing its product offerings which will in turn boost its customer base. Consequently, this will drive its top-line growth.

Mattress Market Holds Promise

The latest move has enabled Amazon to make its foray into the growing mattress and bedding market.

Per the latest report from Zion Market Research, the global mattress market is expected to reach $43 billion by 2024 at a CAGR of more than 6.5% between 2018 and 2024.

This can be attributed to growing commercial and residential construction which is bolstering the demand for mattresses globally. Further, increasing online shopping in this fast paced world has led to the emergence of bed-in-box kind of mattresses.

We believe Amazon's house brand bed-in-box kind of mattress will aid it in reaping benefits from this growing market.

Gaining Competitive Edge

The company's strong focus toward enhancing the shopping experience on its vast e-commerce platform with the help of wide range of its house brand products and products from third party retailers will continue to aid its retail presence.

Notably, Amazon's latest move is likely to threaten the local as well as big retailers like Walmart WMT , Target TGT , Casper Sleep, Leesa, Serta Simmons Bedding and Tuft & Needle which are also putting strong efforts to reap benefits from the market.

Tuft & Needle rolled out its first bed-in-box mattress in 2012 and is planning to merge with Serta Simmons Bedding. Further, Casper introduced its first mattress that can be folded in a box in 2013.

Further, Target made an investment of $75 million in Casper last year. In February 2018, the retail giant, Walmart unveiled its own luxury mattress with bed-in-box characteristics namely Allswell.

Additionally, Amazon's aggressive retail strategy, strengthening delivery services, customer loyalty offers and robust home brand products will intensify the e-commerce competition for the likes of Wayfair W . Notably, Wayfair introduced a compact bed-in-a-box mattress called Nora on its online platform last year and recently it rolled it out in the U.K.

All these endeavors will help Amazon sustain its momentum in the online as well as core retail space.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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