Amazon moves into yet another market: now, it’ll sell you a bed!
Saying that a brand puts you to sleep is rarely a compliment – unless, that is, it’s in the business of selling you beds. That’s an industry Amazon has moved on in the last few days, joining major competitors like Walmarts and Target in selling mattresses designed to fight startups like Casper Sleep Inc. for market share. As well, of course, as each other. But if the past decade has shown anything, it’s that Amazon is not scared of its offline rivals – and seems to have their number.
Amazon’s share price has appreciated by 71% year to date
SOURCE: Yahoo Finance
TJI Research, a firm that monitors Amazon’s growing list of over 120 private label products, noticed on Friday that the company has started selling an AmazonBasics foam mattress, with an entry price of $130. Amazon’s own brand offerings include everything from kitchen goods to electronics, clothing and batteries. It also includes bed frames and bedding. But the mattress is new – and it’s just the latest example of Amazon showing that it’s willing to disrupt specialist retailers and merchants that use its marketplace.
If you’re not au fait with the bedding world, you might be surprised to find out that mattresses are a hot topic at the moment. A number of interesting new mattress startups have gained big backers in recent months, and major retailers are increasingly using the products to lure in customers and boost sales. Why? Well, it’s a huge market. After all, everyone’s got to sleep – and most of us want to do it on a comfy mattress!
Dominion holds Amazon in its Global Trends Ecommerce Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.