The global bed company Sealy Mattress has invested 40 billion won in Yeoju, Gyeonggi Province. This is to create the largest factory of its kind in Asia. On the 13th, Sealy Mattress announced that it held a groundbreaking ceremony for a new mattress production plant in Yeoju the previous day. The new plant will have a total floor area of approximately 14,000 square meters (about 4,200 pyeong) and aims to be completed by 2026.
Since establishing a factory in Yeoju, Gyeonggi Province, in 2016, Sealy Mattress has produced most of its products domestically. The plan is to use the new factory as the center of its strategy for Asia. This means performing all processes from raw material storage to manufacturing, completed finished goods, and shipping, ultimately aiming to establish the largest mattress production hub in Asia. But why specifically Yeoju, Korea? There are two reasons for this.
① Double-digit growth rate “Korea has awoken to comfortable sleep”
The high growth rate of Sealy Korea, which manufactures and sells Sealy mattresses in Korea, is the biggest background for this. Last year, it achieved its highest ever performance. According to the Financial Supervisory Service’s electronic disclosure system, Sealy Korea’s revenue last year was 81 billion won, an increase of 19.8% compared to the previous year. During the same period, operating profit also reached 13.8 billion won, up 33.1%. It was the first year that operating profit surpassed 10 billion won.
Revenue has consistently increased. Since submitting its first audit report in 2019, Sealy Korea’s revenue has steadily risen from 33.8 billion won. In 2020, it approached 40 billion won, surpassed 50 billion won in 2021, and exceeded 60 billion won in 2022, showing a steady annual increase of 10 billion won.
Sealy Mattress attributes this to Korean consumers beginning to value ‘the quality of sleep.’ According to the Organisation for Economic Co-operation and Development (OECD), Korea is a representative country suffering from sleep deprivation. The average daily sleep time is among the lowest among member countries. As of 2021, the average daily sleep time for Koreans was 7 hours and 51 minutes, which was on par with Japan and the lowest level, and compared to the average (8 hours and 27 minutes), it was more than 30 minutes short.
Simon Dyer, Head of Asia-Pacific at Sealy, said, “Sealy Korea is the fastest growing organization among our global subsidiaries,” adding, “The potential of the Korean market and the capabilities of the local team led to this investment. Products successful in Korea work in the global market as well.”
② Quick responses from Korean consumers and expanded distribution network
The nationwide expansion of Sealy Korea’s distribution network is also one of the reasons for the investment. With significant growth, the company is aggressively expanding its distribution network, anticipating further growth in the future. Sealy Korea sells through more than 140 department stores, outlets, and specialty stores nationwide. A representative from Sealy Korea stated, “As consumer touchpoints have expanded, we expect future growth to be even stronger.”
The high interest of consumers in new products, due to consumer characteristics, also makes the Korean market attractive for investment. According to the Korean Consumer Association, Korean consumers tend to have strong consumption patterns that adapt quickly to changing trends. A representative from Sealy Mattress noted, “As we believe Korea will serve as a testbed for the Asian market, the investment was executed.”
In fact, there is substantial interest in the MotionPlex recently launched by Sealy Mattress. MotionPlex is the only connected spring motion mattress in Korea. While motion beds are primarily foam mattresses, the spring feature distinguishes it. Spring mattresses tend to offer better elasticity compared to foam mattresses.
Yoon Jong-hyo, CEO of Sealy Korea, said, “The new plant is a result of domestic growth and part of a global strategy to enhance competitiveness in the Asian premium market,” adding, “We will build a manufacturing hub that sets global standards not only in production but also in quality and technology.”