SheelaFoam, the company behind the
Sleepwell brand, is having a tough time
in the third quarter, even though the
promoters have bought more shares.
A chat with a mattress distributor
revealed some important details.
Sales have been slow this quarter.
Across lndia, retail demand is weak,
and this is affecting the company's
performance. However, sales to hotels
and other businesses are still doing
well.
The company is also facing strong
competition from online brands like
Wakefit. These online brands have
a lot of funding and are focused on
growing their market share rather than
making profits. They offer lower prices
and better deals, which attract more
customers. This problem is even bigger
in South India, where more people
prefer shopping online.
On the bright side, the cost of raw
materials has been stable or even lower,
which could have helped profits. But
because sales are down, this benefit
isn't making much difference.
Sheela Foam has also made some
changes in how it works with
distributors and is merging Kurl-on with
its business. These changes might help
in the long run, but right now, they are
making things harder for distributors
and affecting sales.
The overall mattress market is also
struggling. People are spending less,
and more customers are shifting to
online shopping because it's easier
and offers better prices. Sheela Foam,
which depends a lot on retail stores, is
finding it difficult to keep up with this
change.
