Simmons indicates Ace’s 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 first and second place in the bedding industry, are fighting a “war of nerves” over price hikes. The two companies are “sister companies” headed by Ace Bed’s honorary chairman younger son An Yoo-soo, and this is the first time the two companies have officially mentioned the other company and entered into a confrontation.
According to the furniture industry on the 9th, Simmons, led by his younger brother Ahn Jung-ho (left), issued a press release on the 2nd and announced the company’s price freeze policy, while Ace Bed raised the product price up 20% last year, and Sealy Bed and Tempur twice over the same period. You mentioned a price increase. Unlike other companies that raise prices all at once, Simmons has highlighted the position of not raising prices.
Ace Bed, who has been silent for a week, issued a press release the same day, noting that Simmons had raised multiple 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 has increased the price six times since the end of 2017.” Ace bed compared the fact that the company raised the price of popular mattresses by 30% during this time, while Simmons increased the price by 65-87%. He said, “Last year, department 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 bed No. 1 Ace.” In the home bed industry, Ace Beds maintained the No. 1 position. 1 for over 30 years and Simmons follows closely. Last year, Ace bed sales were 346.3 billion won and Simmons reported 305.4 billion won. Last year was the first time Simmons reached 300 billion won in sales.
Journalist Myung Hee Jin
