Simmons Points to Ace 20% Raise
Ace responds with a press release
Analysis of “Battle for the King of the Bed Market”
Ace Bed and Simmons, which compete for the first and second place in the bed industry, are fighting a ‘war of nerves’ over price increases. The two companies are ‘brother companies’ led by the younger son of Ace Bed Honorary Chairman An Yoo-soo, and this is the first time that the two companies have officially mentioned the other company and set up a confrontation.
According to the furniture industry on the 9th, Simmons, led by his younger brother Ahn Jung-ho (left), released a press release on the 2nd and announced the company’s price freeze policy, while Ace Bed raised its product price by up to 20% last year, and Sealy Bed and Tempur twice during the same period. You mentioned a price increase. In contrast to other companies raising prices all at once, Simmons highlighted the stance of not raising prices.
Ace Bed, which remained silent for a week, released a press release on the same day, pointing out that Simmons had raised more prices over the past five years, and launched a counterattack. Ace Bed said, “We raised the price twice for about five years from December 2017 to last year, but Simmons raised the price six times from the end of 2017.” Ace bed compared that the company raised the price of popular mattresses by 30% during this period, while Simmons raised the price by 65-87%. He said, “Last year, department store store sales exceeded 170 billion won, widening the gap with the industry’s second place (Simmons) despite the recession.” Ace Bed is led by his older brother Ahn Seong-ho (right).
Regarding this, an industry insider said, “It seems that the battle for the throne between the brothers is getting fiercer as Simmons threatens the undisputed No. 1 Ace bed.” In the domestic bed industry, Ace Beds has maintained the No. 1 position for over 30 years, and Simmons is closely following behind. Last year, Ace bed sales were 346.3 billion won and Simmons recorded 305.4 billion won. Last year was the first time Simmons entered the 300 billion won mark in sales.
Reporter Myung Hee-jin