Digital ad technology has come a long way. So working in the mattress industry means my social media channels are flooded with ads from (mostly DTC) mattress brands.
Just when you think you’ve seen them all, one in particular caught my eye. It was from Nectar, and it said, “PRO TIP: DON’T SPEND $4K ON A BED!” It goes on to say, “Upgrade your bedroom for less than the cost of a high-end mattress alone.”
As we’ve closely covered in Bedding News Now, the luxury side of the bedding industry is going strong and still growing despite economic challenges. Ads like this speak on price alone to a very specific customer who buys at a specific low price point, but it still does a disservice to the industry overall, according to some industry leaders.
Mike Magnuson, co-founder of Goodbed.com, says that pushing consumers toward lower-priced beds fuels the commoditization trend in the bedding industry.
“You’re pouring gas on the fire,” he says. “If you’re a commodity player, you win, but at the expense of the consumer, retailer and industry as a whole.”
However, the key takeaway after talking to experts in the industry is not Nectar’s ads, but rather the state of the luxury bedding industry.
Mark Quinn, senior vice president of sales and marketing for Shifman, says that cheaper isn’t better, it’s just cheaper.
“We live in a disposable economy, but people will spend more with the right brand,” he says. “Macro conditions in the economy will hopefully make spending come back, which will continue to be good for the luxury industry.”
About the Nectar ad, he says they exist to “fill a bed.” But the luxury side of the industry, according to Quinn, allows brands to differentiate in compelling ways because the products are built differently.
“We don’t want people who have a ‘good enough’ mentality,” he says. “We tell a story, sell beauty, and have retailer partners who want unique, unparalleled products and experiences. The vibe attracts the tribe.”
Richard Fleck, president of Paramount Sleep, tells Bedding News Now that he believes the luxury category will continue to grow in 2026 because the market is bifurcated — meaning higher-end consumers have the discretionary cash flow to keep buying high-end products.
“There is a continued growth curve in the luxury segment, and luxury brands are growing quickly,” he says. “Retailers are investing in luxury, but the key is that we can’t lose sight of the fact that the product has to have value for the consumers. Retailers have to create a reason or experience for consumers to buy.”
When asked about the Nectar ads, he said they miss the mark and don’t give consumers enough credit.
“Most complaints in the market are about boxed beds that aren’t supportive and push a false message,” he says. “When you devalue customer opinion, you fail.”
Kurt Ling, principal at Posh+Lavish, echoes Quinn, saying expert sales associates who excel at telling differentiating benefit stories based on unique components had a strong year last year.
“We do have retailers having record months and quarters,” he says. “Many baby boomers have substantial wealth in a very strong stock market and are moving and spending large amounts, especially on goods in our category. The mattress business is still a very good business to be in. A luxury strategy is more important than ever.”
While Ling says luxury sales were not booming last year and likely won’t be booming this year either, the category significantly outperformed mainstream price points last year and will likely do better this year as well.
“If we dissect the drop in luxury sales, I think the aspirational middle class and upper-middle-class buyer is not spending or isn’t upgrading their purchases,” Ling says. “People who planned to spend $1,500 for a mattress but ended up spending $5,000 because they financed it previously aren’t doing so because interest rates are high and the payment is too large. I think that is why we are seeing unprecedented financing options right now at retail.”
Ling adds that the luxury segment is much more discerning about when and what they spend large amounts on right now.
“We aren’t competing with other mattress brands here in this market; we are competing with $2,000 espresso machines, $3,000 handbags and great vacations,” Ling explains. “As we introduced our hand-tufted collection and our horsehair collection, we took seriously what consumers say they would spend for these features, because we know if it is outside what they think is the right number, they won’t even consider it. The middle- and upper middle-income, impulsive and splurging expensive mattress buyer is out of this economy.”
Overall, Ling concludes that the luxury market is more resilient than the mainstream and lower-price-point markets. Part of the reason is that many baby boomers saved significant money, and there are about 70 million of them in the U.S. today. On top of that, health and sleep are generally more important to them than to other age groups.
“When we look at the strength and consistency in luxury sales — which other price points aren’t seeing — we find that high-net-worth individuals are still buying houses because they are paying cash,” he says. “Despite economic ups and downs, cash home buyers are still moving and purchasing furniture and remodeling. The high-net-worth comfort seeker has never left this market. They were here last year, and they will be here this year.
