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Bed Industry Overview in Australia

Essay by   •  March 6, 2018  •  Business Plan  •  1,877 Words (8 Pages)  •  445 Views

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Australians are very particular about comfort in their sleep and every native has a different definition of comfort. Hence, the bed industry has tremendous potential in Australia. Various kinds of beds are on offer by different industry players-Some typical beds on offer are traditional king size beds with wooden or timber make. However, innovation is the tool which has driven this industry forward. This is because this industry is a highly competitive industry with buyers having a wide variety of options. Since, beds are a onetime purchase which last for a long time, Customers look for additional features and innovative designing while purchasing their beds. Price, though an important factor is not the sole factor driving purchase of beds by customers. Manufacturers have come up with innovative ideas such as compact bed suites, where in a bed would create space for storage, foldable study table, etc in a very compact space.  Trundle beds are usually considered a pair of beds, one a twin bed, and the other slightly smaller on rollers or casters so that it may be put beneath the upper twin bed for storage. Trundle beds are a space-saving idea and allow for an extra separate bed to be available when necessary, but do not require the second space constantly. When not used for sleeping, the lower bed, with mattress removed, may be used as general storage. With regard to infant beds, certain manufacturers manufacture beds which are in shapes of cars, Barbie dolls or dinosaurs which go well with the concept of a child’s room. These products priced at a premium to traditional beds, go well with customers who can afford them. The specialization of beds of each competitor is described in detail in the competitor product analysis section of various competitors.  Beds, as a product do not show any seasonal trends because furniture is purchased in all seasons. However the impact of business cyclical trends is visible during recessionary times in this industry, when customers delay redesigning their homes and decide to use their existing furniture for a longer time. Several online sellers and maximum small scale offline players customize beds as per the specifications of the customers (color, shape, quality, design). Some players have acted as a supplier, supplying beds from major manufacturers such as Tempur or Selly beds.  Several manufacturers manufacture their own beds, while also stocking the products of other brands to attract a wider customer base. All major players have a website designed with details of their products even if they do not offer online sale facility. After sales service plays a very pivotal role towards the success of a manufacturer in this industry because even if a slight scratch is noticed in a bed after purchase, customers want it rectified. Customer reviews suggest that several major players host good products but are not efficient with after sales service/promised refund rules as a result of which their reputation is tarnished.


There are various players operating in the online marketplace for beds. However, maximum players have retail stores all over Australia through the franchisee system.  Beds as a product perform better in the offline market than the online market because customers are skeptical about purchasing beds without trying them. Customers prefer to buy after ensuring the comfort of the beds. Hence, even the players who have online stores have better sale through their physical stores.  There are certain manufacturers who have only one or two stores in Australia and ship to other parts of Australia. The success of these brands depends on the logistics network and after sales service provided by these brands. If a firm solely sells online, and is not well reviewed with regard to their distribution and customer service, the firm is not sustainable in the long run. All the online operators in Australia have created a niche for themselves in some manner, which I have described in the core competencies section of each major competitor.  There are a few online retailers who have only one or two retail stores in Australia and ship products in other parts of Australia.   Some operators have identified price as the driving factor and sell products at a low cost compared to their competitors. This strategy is undertaken to target the middle class strata of the Australian society. Certain industry players have positioned their furniture as sought for products with unique designs. Purchasing a bed from them indicates a status symbol. Certain manufacturers have portrayed themselves as Furniture Consultants and Home Consultants. EBay to be added


Beds perform well in the offline market with more number of players operating than in the online market. There are players operating at all scales in the offline market. There are certain manufacturers who only sell through their stores but maintain a website to showcase their products. One of such major manufacturers is Bedshed ( specializes in kids’ beds and trundle beds. It manufactures its own beds and also sells other brands beds. It has more than 60 stores across Australia and is reasonable in its pricing.  Manufacturers operating in a small scale generally cater to the needs of the local region where their store is located. They generally make furniture to order and do not block capital hoarding stock of ready to made furniture (Example: Melbourne Florida Furniture Store). These types of players are not recognized countrywide and marketing is a 1:1 approach for them (Personalized marketing). Certain retail stores only sell branded beds (Tempur, Selly etc) to customers. It is to be noted that all major bed competitors have also started selling online in addition to selling through their retail franchise stores. Though these brands still perform better through their retail stores, selling online has given them a new brand identity and increased the reach of the firms products to locations where retail stores are not present.


Buyers can find wooden bed frames made of various kinds of wood including mahoganypine, and oak. Each type of wooden bed frame has its own distinctive color and grain structure. By knowing the features of the main types of wood, buyers can be one step closer to making a decision.

Wood Type





quite hard


resists warping, shrinking, swelling


beautiful fine grains

resists fungi and insects



fine texture

very hard, dense, sturdy

very easy to shape



sustainable wood

easy to shape

uniform grain and texture

soft texture

cost effective

resists warping, swelling, shrinking



usually red

resists warping and shrinking

Many buyers love the natural, cozy, and classy appearance of wooden beds. While the color of a bed frame depends largely on its wood, buyers can find wooden bed frames in numerous designs. Besides a simple frame design with no headboard, there are frames with ornate carvings, built-in shelves, and also posts for a canopy.



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