Spring Air, USA’s leading manufacturer, marketer, and distributor of premium mattresses and pillows worldwide, has planned to set up 100 company-owned outlets in India by 2015. “The company will invest Rs 200 crore on the retail expansion which will be done through internal accruals,” said Ashok Sharma, CEO, Spring Air Middle-East and Indian Sub Continent.
The company also plans to open up two manufacturing plants in Mumbai by this year and in Kolkata by the next year, thereby enhancing its production capacity to meet the increasing demands of its Indian customers. With rising luxury demand and a regular efflux of health-conscious Indians in mind, Spring Air India had launched their second factory in Bangalore (the first one is in Noida).
The company is targeting middle to premium segment which confers an average realisation of Rs 38,000. Spring Air India currently has 20 franchise outlets sized between 1,000 and 1,200 sq.ft.
According to Sharma, the average investment required in setting up each store is about Rs 1.5 to 2 crore and the expected ROI is 10-15 percent.
Sharing the journey of Spring Air India, which was launched in 2009, Sharma said: “The first year was a little tough but after that we have been growing at the rate of more than 100 percent year-on-year and month-on-month basis. Earlier mattresses were treated like a commodity but we have changed the concept. We offer it as a product since this is the only piece of furniture which concerns your health and gives you comfort.”
Speaking about the concept of bed shops in India, Sharma said: “In America, from where we have followed this model, 35-40 percent of the mattresses are sold through bed shops and that concept is missing here. So we are in the process of finalising top bed shop franchise in India and on same model we plan to open about 100 stores in the country, where people can go, test a mattress, and feel the comfort.”
The company aims to be the market leader in spring and premium mattress segment, thereby achieving business of more than 300 crore in the next three years.
-Payal Gulati
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