- Introduction to the Singaporean Mattress Market
The mattress market in Singapore is mainly fulfilled by big hospital bed and equipment companies like UMF, Ferco, Hill-rom, Tuuna, and Simmons Healthcare. In the last few years, Hong Kong Honghua Healthcare imported some air mattresses into the local Singapore market, including prevention and treatment of pressure ulcer bubble air mattresses. At first, Hong Kong Honghua Healthcare just defined the factory outlets and put another brand to resell in the local market. In 2011, Hong Kong Honghua Healthcare imported Hong Kong Garment Innovations Factory to locally invest using the outlook of designs, quality production experiences, and short lead-time of high value-for-money resistant-to-heat-broken air mattresses, and defined another “Hong Kong Honghua Healthcare” brand to resell.
The population of Singapore is aging due to a declining fertility rate, higher life expectancy, and increased numbers of retiring baby boomers. All of these factors have led to the size of the silver hair market expanding significantly. Pain relief, prevention of bedsores, improved sleep quality, and allowing patients who are bedridden for long periods to get up for short breaks are some factors contributing to the demand for mattresses. Bedsore prevention is a major concern that has developed into a stance on cost-effective ways to promote quality nursing homes for the elderly. In Singapore, there are only 26 high-level wards, and the annual bed occupancy exceeded 85%. This prompted the Building and Construction Authority of Singapore to gather specialists in the field and develop appropriate guidelines for building high-specification wards in 2011.
1.1. Overview of Mattress Types and Preferences
Simmons and Sealy dominate the top 10 manufacturers of hong kong double mattress in singapore. Consumers often view top foreign mattress brands such as Europe’s Tempur-pedic as the most comfortable without appreciating them for the high price tags. This perception has been the main obstacle preventing locally made hong kong king mattress in singapore such as Getha, Dreamworld and King Koil from penetrating the high-end market. As it may be tedious to compare prices and quality, this paper will seek to recommend mattresses based on their optimal spinal support to retailers in Singapore. At the moment, there are 83 retailers of mattresses. Data on 10 types of mattresses have been retrieved from the Singapore’s Department of Statistics (DOS).
An individual will spend on average one-third of his or her life in bed, making it of utmost importance that the bed is as comfortable as possible. A bed consists of a frame, foundation (mattress) and top covering (mattress pad). There are two main types of mattress foundations: the boxspring-containing coil spring mattress and the one-piece water, air, latex or foam mattress, and their hybrids. A study found that no mattress type and no mattress manufacturer consistently had the lowest or highest pressure output. Instead, there are good and bad mattresses within each type (waterbed, inflatable, foam and hard surface). However, the best mattress should be based on the individual’s therapeutic needs.
- Importance of Hong Kong Mattresses in Singapore
Stress, neck and back pains have become a common problem in today’s society and getting a good mattress is one of the solutions. A good quality hong kong single mattress in singapore which is comfortable and will support the spine while one is sleeping. People often spend extra money just for this reason but the Hong Kong mattress offers a great price. It retails from SGD 1998 up to the most expensive mattress of SGD 2678, which compared to mattresses of similar quality in competitors’ stores, customers are quoted a range of SGD 8000 to 9000. Small wonder that many were rushing to make a purchase.
The main reason for this international prime quality standard claim put up by the Hong Kong mattress retailers is nothing but the fact that all the parts in the mattresses come from France, Germany, Belgium, Austria, and of course, Australia. In addition, the knitted deluxe mattresses are specially ordered by the retailers from the main factory in Belgium, which is operating with almost 190 years of history. The mattresses materials are well selected; the mattress core comes with Rhodia soft cell foam, Belgium Royal Polex Convuluted Foam, and the mattress cover used knitted heating fabric.
The popularity of Hong Kong mattresses lies in its price and quality. They claim their mattresses are not only of international quality standard but also much cheaper. In fact, they insist that their mattresses are of equal quality with comparable brands displayed in brides’ exhibitions, costing only about a quarter of the prices.
2.1. Market Demand and Trends
Singaporeans were no longer looking for just purely functional furniture and were willing to spend more on their beds and beddings. The International Sleep Products Association (ISPA) 1999 Annual Cost Survey report indicated that the United States was one of the world’s largest markets for mattresses and over the years the population was willing to pay higher retail prices. CPF data on household expenditure surveyed an increase in household expenditure on carpets, rugs, bedding, and fitted furniture as the population became older and more affluent. The bulk of the household expenditure was for the age groups above 45 years. Data on price indices showed an increase in the cost of bedding from 1996 to 2000 as compared with homes, hosiery, and shoes.
Demand for mattresses is derived from overall consumer demand for home (or office) furnishing, current and future home ownership and office establishment, demographic factors, and market trends, such as the “home improvement” movements. The market trend for mattresses in Singapore, at the time the URA approved for Talley Valley to be developed, was, and still is, for better quality and higher priced products. Singapore Department of Statistics’ data indicated that the volume of production and sales of imported furniture products increased significantly in recent years and the name of the Association of Singapore Furniture Industries (ASCFI) was changed to the Association of Furniture Supplies to reflect the changing nature of the home furnishing market – to furnish houses to turn them into homes.
- Challenges and Opportunities for Hong Kong Mattress Brands in Singapore
Since Hong Kong and Singapore are well known as economic entities and have a well-developed hotel industry, the findings can provide reference for other kinds of economic and hotel industry entities that are willing to export or import hotel products, respectively. The results of this research help different Hong Kong mattress brands to have sufficient knowledge on hotel mattress procurement in Singapore. This is because the adoption of mattress procurement in Singapore could be facilitated and business opportunities could be created. In order to survive and develop well in the international hotel mattress market, Hong Kong mattress business operators could grasp valuable information, data, and insights from the study on the hotel mattress lifecycle. This would allow them to make strategic improvements by overcoming the hotel owner’s purchase intention.
Hong Kong mattress brands have both strengths and challenges when tapping into the Southeast Asian market. For the past decade, Hong Kong has been the second largest trading partner of Singapore in services trade. Hong Kong has also established a network of services agreements with different countries in Asia, like Singapore. The economic and cultural interactions between Hong Kong and Singapore in services areas are fruitful. The demand for hotel activities, especially in FFE procurement, has also increased in Singapore. According to the research topic, the hotels in Singapore tend to pay much attention to selecting mattress brands, bed size matching, brand consistency of the beds in the same level of hotels, and anti-bacterial and anti-mite features.
3.1. Competitive Landscape and Local Players
The price of bed-in-a-box is similar to HK’s. However, the furniture stores or design companies have low price point mattresses, and their business model differs from ours. The promotion strategy, future adjustments, gross profit, and net margin are also significant concerns for our company. However, if you understand more about furniture business retail top-up, logistics, supply chain management, and IT operations, you will know how difficult it is to open a furniture store. In my less than ten years of work experience, I have already closed two online businesses, and a big loss occurred when designing and operating a furniture store. And that still doesn’t include the operating experience in e-commerce, traditional retail, and chain store expansion. Due to the uncertainty and risk of opening a chain store, we’re looking for our suppliers and strategic partners.
In Singapore, the retailer would be SEA, which is the only e-commerce company in Southeast Asia that is publicly listed. Their bed-in-a-box mattresses are also quite competitive in the secondary upgrading property market. The SEA owner or related person actually opens a business in Singapore. Other mattress brands are quite similar to HK, but there are some furniture stores or design companies that have the ability to import mattresses to provide a bed-in-a-box service.
The local player would be the biggest local bedding retailer, and they import Chinese mainland mattresses and do online business. The price is around HKD 1,xxx to 2,xxx. There are also local suppliers who offer customization services, but the price point is HKD 1.2k for a twin size and HKD 3k for a queen size.
- Strategies for Success in the Singaporean Market
Hong Kong companies wanting to make their mark in Singapore should be aware that a “one size fits all” sales policy does not work. Each chain store requires a different approach and plan, especially in terms of packaging and pricing. As a high-tech city, the demand for popular items such as the latest comfort features and product aesthetics that complement high-fashion beds is high. Maintaining high-quality connections is also critical if buyers in the retail and airline sectors are to do the necessary tests. To find the right partner with strong retail outlets and to get quality feedback on product performance, join the Singapore Retailers Association and the Furniture and Furnishings Sales Association-sponsored trade fair. Your Swedish business friend can also attend the International Furniture Fair of the East, which will bring together more than 500 exhibitors from more than 25 countries every year.
Singapore’s mattress industry is vibrant and quality-conscious. It has all the main competitors in the bed market competing fiercely in the bedroom furniture market. Many of the mattresses and bedding we use come from very well-known supermarkets like Robinsons, John Little, Sei-koh or Metro, as well as Sealy, Simmons, Slumberland or Tempur retailers and specialist stores such as Magic Koil / Perfecta and Dorma Bedding. In the first ten months of 2006, Singapore’s mattress imports amounted to S$5,995,094, with New Zealand (S$1,898,987), Japan (S$966,688), Italy (S$633,759), China (S$430,739), UK (S$407,035), Malaysia (S$362,450) and France (S$318,110).
4.1. Marketing and Branding Approaches
Another potential and more personal unique selling point of new mattress retailers is the introduction of personalized or customized mattresses. Customized product is an additional value to customers. Customizing mattress to fit customers’ unique body shape and personal preference is actually one way of offering better quality products which also bring extra quality of life benefits. This would require displaying good mattress knowledge and selection skills, offering customizing tools or technology during sales, providing or outsourcing customization services, and offering generous trial services, money back and exchange guarantees. Currently, in the Spring Home showroom, there is the keen sale person teaching customers how to select the right mattress and letting the customers try out their newly selected mattress, and a special service shelf which offers to display various customized pillow styles made by the Spring Home pillow customization service. Providing a bigger in-store electrical plasma bed color scanner for body measurement and offering recommendations on mattress selection and product customization at the same time as the scanner detects body information would surely make the brands more attractive and differentiate themselves from competitors even more.
A distinct marketing approach is difficult to achieve due to the new brands lacking experience, international recognition (especially in another country like Singapore), and sufficient scale in terms of production, distribution, marketing, financial capabilities, etc. It takes time for a new brand to build its unique brand image and set its unique point of differentiation in the market. In fact, being a more competitive market, new entrants, especially brand new names, face even more challenges in multiple aspects. A fast solution is to look for strategic alliance or any form of partnership with more established brands, distributors or retailers. Such strategic alliances may be realized in brand orders, technological cooperation, licensing agreements, or distributor acquisition. For example, it may be much more efficient for a brand with no experiences in foreign market operations to leverage the established network of distributors to enter into a new market. In Singapore, there are quite a lot of attractive choices of distributors and retailers for a mattress retailer to distribute its mattresses.
- Conclusion and Future Outlook
This research involved three key components: an in-depth review of the relevant literature, a detailed analysis of various strategies available to Tan to enter the Singaporean market, and a final selection of the most appropriate entry strategy that could fit into the VISCSPA view of international market entry. While not explicit, the Magic Dimensional model for our selected entry strategy is helpful for both Tan and the New Pelican Mattress Company. But interestingly enough, the model applies also to existing competitors. It is not very likely that New Pelican Mattress Company is the only mattress company in Hong Kong that may benefit from being first, if and when the Singaporean market were to open up. Last and our most important finding is an interim outlook. New Pelican Mattress Company should not open exclusive showrooms at River Valley Road until the blanket verdict must be issued about the medium run to long run future of Hong Kong in the circles of international marketing. The future outlook is not direct or straightforward. However, by carefully observing the changes in the rival’s economies and the commitment of the People’s Republic of China to ensure the continued prosperity of Hong Kong, the marketers of Hong Kong may gain new perspectives into the international marketing process. Perhaps, if this character is recognized in time, and properly included into the VISMSPA view of international marketing by the Hong Kong marketers.
5.1. Summary of Key Findings
By the nature of this study, we must mention the limitations. First of all, the trade data contains only the GDP of the trading countries without data such as willingness of consumers to pay, which would further enhance this study. Furthermore, it does not tell us the actual benefits brought to Singaporeans. However, it is estimated that Singaporeans still have more than SGD40 billion of purchasing power. If a certain percentage of it could be saved for investment, overseas demand for Singaporean goods and services from bedroom to bedroom and the use of Singapore as an International Furnishing Hub to proceed the Integrated Global Supply Chain could be expanded greatly. Data of the financial statements of the companies and the implementation of the logistic models can be future improvements. Last but not least, though we focus on HS230400, the findings may be applicable for other internationally traded products.
This study investigated the impact of Hong Kong mattresses, which combine style, fabric, and design from European products with affordability and functionality from Mainland China mattress products, on the Singaporean market through the Rental Margin Model using country data collected from ITC Trade. Using HS230400 as a proxy for mattresses, we found out: (1) The significance of Hong Kong products to other developing countries such as Africa and Asia in the Singaporean market. Mainland China products are statistically significant only to LDCs represented by HSclassified. (2) If considering only the developing market, the negative impacts are focused on Thailand and are statistically significant. (3) It is interesting to find that Hong Kong products have a positive impact on merchandise countries while Mainland China does not. With an increase in the revenue gross of imported mattresses, the percentage of Hong Kong rises while the percentage of Mainland China falls. (4) This may result from the difference in quality, the benefits of CEPA, and the ITC impact on the ground.
