Breaking Through Recession with 'Multi-Brand' Strategy... Simmons Accelerates N32 Expansion

Vegan Mattress Brand 'N32'
Expanding Offline Stores Including Shinsegae Department Store
40% Sales Growth in the First Half of Last Year

Simmons is breaking through the recession with a ‘multi-brand’ strategy aligned with the spread of ESG (Environmental, Social, and Governance) consumption trends. While the entire furniture and mattress industry is experiencing growth stagnation due to the real estate market slump and reduced consumer spending, Simmons has found a breakthrough with its vegan mattress brand ‘N32.’

According to industry sources on the 4th, Simmons opened an N32 pop-up store at Shinsegae Department Store Gangnam branch the day before. Earlier, on the 1st, it officially opened stores at three locations: Shinsegae Department Store Centum City, Hanam, and South City branches. With four additional stores opened this month alone, the total number of N32 offline stores has increased to 25.

The N32 store that opened on the 1st at Shinsegae Department Store Centum City branch. Photo by Simmons

N32 is Simmons’ vegan mattress sub-brand. When first introduced in 2022, it was part of the Simmons Collection, but last year it transitioned into an independent brand. This is part of Simmons’ ‘multi-brand’ strategy. In the past, the industry typically operated with a premium brand at the center alongside a second brand with a lower price range. However, recently, the strategy of independently operating brands with clearly distinct target audiences has been spreading. During economic booms, both premium and second brands can grow sales, but in recessions, consumers tend to flock to brands with stronger price competitiveness, increasing the likelihood of internal competition.

The growth of N32 is rooted in the vegan and eco-friendly consumption trend. N32 is the first in the domestic mattress industry to exclude animal-derived materials from all products and has obtained vegan certification from the Vegan Standard Certification Institute. Operating as an independent brand from Simmons, it has successfully differentiated itself as a ‘high-end vegan mattress.’

Based on this differentiation, N32’s annual sales in 2023 increased more than threefold compared to the previous year. Sales in the first half of last year also grew by 40% compared to the same period the year before. It is especially noted for quickly establishing itself in line with the consumption patterns of the 20s and 30s generations, who prioritize ‘value consumption.’ A company official explained, “Young consumers consider the social impact of their consumption behavior important,” adding, “The vegan mattress is receiving a positive response as it aligns with this value consumption trend.”

Cases utilizing multi-brand strategies are increasing in the industry as well. Shinsegae Group’s furniture affiliate Shinsegae Casa revamped its mattress brand ‘Materasso’ in 2021 and, in 2023, reorganized it into a sleep-specialized brand focusing on growth. This year, Materasso aims to increase sales by 50% compared to the previous year and plans to open about 30 additional Materasso specialty stores within the year. Daemyung Sono Season also launched a mid-priced brand ‘Sleepover’ last year targeting customers who prioritize practicality and cost-effectiveness.

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