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Online Mattress Sales Getting a Wake-Up Call

One area where our CE Receipt data has been especially value added is in tracking mattress company direct-to-consumer online sales.  With new entrants like Purple Innovation and Casper getting a majority of their revenue from direct sales, email receipt data can provide a powerful tool for analyzing these companies’ success, including financed sales that may not be picked up in other data sources.  In today’s Insight Flash, we dig into how Casper and Purple Innovation online sales compare against established player Tempur-Pedic, looking at market share, spend per transaction, and items per order.

In the direct-to-consumer online channel, Casper and Purple Innovation hold a much tighter foothold in the market than Tempur-Pedic.  Although Casper spend comprised over half of the market share for this group at the beginning of 2019, Purple Innovation was able to take better advantage of COVID-19 opportunities, becoming the share leader through September 2020.  Purple Innovation share did steadily decline after that, a decline that accelerated after an accident at their factory hurt the brand and their supply chain.  Although Tempur-Pedic direct spend has lagged, it’s been double digits for 16 of the last 18 months.  

Market Share

Note:  Online DTC spend only

Pricing is vastly different across these brands.  In Q3, Casper’s spend per transaction was 43% higher than Purple Innovation’s and 90% higher than Tempur-Pedic’s.  This premium is a recent phenomenon that began in 2020Q2, with spend per transaction increasing through Q3 of this year.

Spend per Transaction

Note:  Online DTC spend only

Casper’s higher spend per transaction isn’t a function of a larger basket – Purple Innovation has consistently done a better job of attaching more items to the transaction such as pillows and sheets.  Over the last four quarters, Purple Innovation has averaged 2.1 items per transactions versus 1.9 for Casper and Tempur-Pedic.

Items per Order

Note:  Online DTC spend only