PEPS Industries is a Rs 265 crore inner spring mattress manufacturing company founded in 2006 by K Madhavan along with his partners G Shankar Ram and P Manjunath. Based out of Coimbatore, PEPS is the only Indian licensee of world’s fourth largest spring mattress brand ‘Restonic’ of Restonic Corporation of USA from 1936. Talking about the retail aspect of the business, which is operated under the brand name of The Great Sleep Store, K Madhvan, highlights the retail footprint, market size and future growth prospects of the brand in India.
When PEPS started its operations in the spring mattress sector, the market was dominated by coir and foam mattresses, and spring mattresses had a less than 2 per cent share in the total mattress market share. But today, it is more than 10 per cent, with a growth rate of 40 per cent per annum. This rapid growth, in the recent past has forced all leading manufacturers and top brands of mattresses – who had earlier failed to estimate the potential of the segment – to explore the same with great vigor.
Estimates put the mattress industry at close to Rs 5,000 crore in India. The spring mattress industry is estimated to stand Rs 500 crore, and PEPS claims a 53 per cent share in the same.
The company has over 5,000 dealers pan-India, and 125 company-owned exclusive retail outlets which are called ‘The Great Sleep Store’ (GSS). From the time of its inception, PEPS has always encouraged franchisee stores. We have always believed in letting people have ownership of the products they sell.
One trend that can be seen is that consumers are very particular and well-informed. They know what they want. They are not ready to compromise over the product and are not satisfied unless their specific needs are fulfilled. Customer loyalty is a very important factor in the growth of PEPS, and until and unless consumers are happy with the final outcome, they will not be loyal.
In terms of growth, one key aspect is to have a unique product portfolio range. Another factor is our uniqueness as well as the very diverse range of products, which can fulfil the needs and requirements of all kinds of customers. Keeping up with the latest in technology is also vital to any company’s growth. Having truly dedicated and inspired employees is fundamental to any company’s growth.
PEPS has always aimed to position the Inner Spring Mattresses as an affordable luxury. Our products are targeted at people who want to graduate from conventional coir mattresses to spring mattresses.
Our portfolio ranges from one-of-a-kind products such as Spineguard, Restonic etc to affordable, totally organic products like Organica. We are the only brand in India to offer at least half a dozen variables in the inner spring segment every year.
All PEPS products are made in India. PEPS currently has three operational manufacturing units, each catering to the south, west and north India.
PEPS has a wide range of lower, mid-to-premium products, encompassing a large number of sub-brands such as Spineguard, Organica, Vivah, Grand Palais and many more under their mattress wing. Organica is the first ever mattress to be made from chemical-free bio-cotton and eco-latex. Spineguard, which is crafted from memory foam, promises zero body aches while also being comfortable to sleep on.
Apart from these, PEPS also has its own range of pillows and comforters, sub-branded as Hypnos, Komfy and others. Hypnos is the go-to pillow for comfort and long-term freedom from back and shoulder aches, while Komfy is their feather soft comforter.
The collection of spring and foam mattresses, pillows and comforters at PEPS comes in multiple colours which the customers can visualise on their webpage. Each of these have been designed to meet the specifications of every kind of customer that may come their way, be it couples, children or the elderly. PEPS has become the complete bedding solution for all, sparing you the trouble of visiting too many stores to get good quality bedroom necessities.
PEPS has positioned products from affordable luxury to indulging in comfort. Mattresses start from Rs 9,159 and go upto 1.25 lakh and pillows start from Rs 699. The most popular range in stores is the mid-range of products.
PEPS stores are strategically placed across the country in order to make quality and affordable mattresses available to everyone. GSSs are positioned to give access to customers who want to graduate from conventional coir mattresses to spring mattresses as well as those who want all products under one roof.
Average store size for a Great Sleep Store of PEPS is approximately around 1950 sq. ft.
We live in a fast-paced world where the focus on work is so high that we often neglect what is most important for us – a good night’s sleep. Unfortunately, we are living in a sleep-deprived world.
This shift led to the creation of the PEPS campaign: ‘livethe #PEPSlife’. We are one of the brands who have positioned ourselves creatively. When all the brands in this category are stuck with night and sleep equity, PEPS has moved to the message of ‘staying energized’ and ‘recharged life as an after-effect of sleep, and during the day’.
We understood the tension of our target audience due to the reduced sleeping hours and need for a recharged life and we promise to fill this gap by our ergonomically-designed and comfortable range of mattress products. And this insight is the genesis for the new positioning.
To start off, we have increased the manufacturing infrastructure by 200,000 sq. ft. The next step we have taken is that we are also shifting from manual labour to automation which will give a consistency in quality. In order to improve services and keep up with the demand, we are coming up with a new plant in Bengal. We are also looking to increase the Pune plant capacity. All of these are nearing completion.
At PEPS, we believe that the experience of buying a mattress is just as important as the mattress itself. After all, mattresses are a long-term investment and so the consumer must be able to see all the options and make an informed decision. In our stores, we create an experience for the customer that they will not get elsewhere. On display, we have our range of products under one roof. This diversity can greatly help the customer understand the product and make the right decision.
As of right now, PEPS has 125 Great Sleep Stores and in the next 1.5 years we are planning to take it 250 stores.
Online & E-commerce:
We are very gung-ho about e-commerce and we currently have a dynamic website which is very user friendly. We have tied up with e-tailers like Amazon, and Flipkart. As of now, e-commerce brings in about 4 percent of our total turnover.
But we are also waiting, observing and studying the e-commerce industry before we make a move.