Sheelafoam Challenges : Mattress Market Slowdown due to online Shopping

SheelaFoam, the company behind the

Sleepwell brand, is having a tough time

in the third quarter, even though the

promoters have bought more shares.

A chat with a mattress distributor

revealed some important details.

Sales have been slow this quarter.

Across lndia, retail demand is weak,

and this is affecting the company's

performance. However, sales to hotels

and other businesses are still doing

well.

The company is also facing strong

competition from online brands like

Wakefit. These online brands have

a lot of funding and are focused on

growing their market share rather than

making profits. They offer lower prices

and better deals, which attract more

customers. This problem is even bigger

in South India, where more people

prefer shopping online.

On the bright side, the cost of raw

materials has been stable or even lower,

which could have helped profits. But

because sales are down, this benefit

isn't making much difference.

Sheela Foam has also made some

changes in how it works with

distributors and is merging Kurl-on with

its business. These changes might help

in the long run, but right now, they are

making things harder for distributors

and affecting sales.

The overall mattress market is also

struggling. People are spending less,

and more customers are shifting to

online shopping because it's easier

and offers better prices. Sheela Foam,

which depends a lot on retail stores, is

finding it difficult to keep up with this

change.