Nantong, Jiangsu – Chinese mattress maker Mlily is expected to increase its US market share from 9% in 2020 to more than 20% in 2021, according to Great Wall Securities.
There will be a gap in the US market of 2.4 million unit memory foam mattresses in 2021 following the imposition of anti-dumping duties on imports from south-east Asia. Countries in this region now account for 28% of US consumption, according to a report from the Chinese securities firm.
Mlily will be able to help fill in the gap, as it already has manufacturing facilities in place in the US. These have CNY2.7bn ($417m) of designed annual capacity.
The company’s overseas plants purchase 55% of feedstock locally, which helps it counter price fluctuations from Chinese suppliers, and maintain stability in cost management, the report added.
Mlily is estimated to record CNY802m net profit in 2021, up 53% from 2020, with the additional help of domestic expansion, the report said. Sales in 2021 will likely reach CNY9.4bn, a 49% jump from 2020.
Last year, the value of the domestic Chinese mattress market was CNY77bn, of which memory foam mattresses comprised less than 5%. This compares to a 50% share for foam mattresses in the US.
Mlily to increase US market share following anti-dumping duties
