Simmons Bed, 2020 Sales 271.5 Billion KRW... 33% Increase YoY

Increase in Premium Wedding Bed Purchases Drives Sales, Dominating Luxury Hotel Bed Market

Simmons Performance Comparison. [Table=Simmons]

[Asia Economy Reporter Kim Jong-hwa] Simmons, a sleep specialty brand, is on the verge of becoming the number one in the bed industry. Simmons Bed announced on the 22nd that its sales last year reached 271.5 billion KRW, a 33% increase compared to the previous year (203.8 billion KRW). Simmons, which surpassed 200 billion KRW in sales for the first time in 2019, increased its sales by 67.7 billion KRW last year.

The sales growth is attributed to ▲an increase in premium wedding bed purchases ▲domination of the luxury hotel bed market ▲distribution channel innovation by relocating consignment dealerships called 'Simmons Mansion' to premium commercial districts ▲activation of the 36-month long-term interest-free installment program 'Simmons Pay.'

Last year, operating profit was 14.7 billion KRW, and the operating profit margin remained at the 5% level, similar to the previous year. This is the result of two consecutive years of pre-investment in distribution channel innovation, relocating dealerships from existing mid-to-low price furniture districts to premium commercial districts. Aggressive investments related to this will continue this year as well.

Last year, Simmons Bed opened 18 Simmons Mansions, increasing rental expenses by 3.7 billion KRW to a total of 9 billion KRW, a 70% increase compared to the previous year. Generally, when opening a Simmons Mansion consignment dealership, an average pre-investment of about 500 million KRW per store is made, including interior construction costs and rent.

Simmons Mansion is a system where the headquarters fully supports all necessary aspects of store operation, such as rent, management fees, interior costs, display products, store promotion, and marketing expenses, while the store owner earns sales commissions. Currently, 38 Simmons Mansions are operating nationwide.

Additionally, Simmons Bed actively created jobs and ensured employment stability despite the frozen job market due to the COVID-19 pandemic last year, increasing labor costs by more than 10 billion KRW compared to the previous year. Over 250 new employees were hired in the past year alone.

Of the total donations of 400 million KRW last year, 300 million KRW was supported to Samsung Seoul Hospital to help pediatric and adolescent patients with childhood cancer and severe rare incurable diseases who might be marginalized due to medical blind spots caused by the spread of COVID-19. Also, to improve the welfare of firefighters who fight fires daily, Simmons has been delivering flame-retardant mattresses worth about 100 million KRW to fire stations and fire academies nationwide through the Korea Fire Welfare Foundation for three consecutive years since 2019.

This content was produced with the assistance of AI translation services.