Sleep economy, a new blue ocean for brand development?

Statistics show that more than 300 million people in China have sleep disorders. Obviously, this has brought new business opportunities to the consumer market. So, what kind of sleep products can win the favor of consumers, and what kind of brands can lead the industry to prosperity? Let's take a look at the author's analysis and interpretation.

In recent years, hot searches about sleep problems are everywhere, such as #8-hour sleep theory may be wrong#, #Nearly half of Chinese people do not sleep more than 8 hours a night#, #How difficult is it for modern people to get a good night's sleep#, #Why do we always stay up late knowingly#, #What exactly affects our sleep#, #Counting sheep cannot cure insomnia#, #Non-working groups suffer from the most serious sleep deficiency#, etc., reflecting that there are many users who have sleep problems.

According to the data from the China Research Institute's "2022-2027 China Sleep Economy Industry Market In-depth Research and Investment Strategy Planning Research Report", the insomnia rate among adults in my country is as high as 38.2%, which means that more than 300 million people have sleep disorders. Suffering from sleep problems has become a pain point for consumers. Problems give rise to demand, and demand drives supply, which also indicates the birth of new opportunities in the new consumption era.

1. Sleep disorders are troubling young people

As social development continues to accelerate, contemporary workers are facing both psychological and physiological problems. They are busy at work during the day and lack free time, so late at night becomes an opportunity for people to "stay up late for revenge". Chasing TV series, playing games, watching Douyin, shopping on Taobao, etc. distract young people's attention and make them develop the habit of staying up late. The decreased immunity of this group of people has caused sub-health problems, and more and more young people are suffering from insomnia.

According to the portrait of insomniacs in China in the "2021 China Sleep Economy Industry Research Report", young and middle-aged people aged 22-40 account for 74.3% of the insomniac population. Among this group of people, nearly 6 have a bachelor's degree, and they are mainly concentrated in economically developed first- and second-tier cities, and their income is mainly concentrated between 5,000 and 15,000 yuan.

Image source: iiMedia Research

Obviously, sleep disorders are plaguing young people today. People born in the 1980s, 1990s, and 2000s are the main group of people suffering from sleep disorders, and they are younger, have higher incomes, and are more educated. This group of people is more receptive to new things, has more disposable income, and they want to be healthy and happy, which makes sleep problems bring new business opportunities to the consumer market.

2. Sleep problems give rise to new business opportunities

Sub-health has made young and middle-aged people aware of the importance of physical health. Staying up late while maintaining good health has become a living and consumption habit for most young people. Seeking help with sleep problems has also pointed out the direction for the development of the brand.

According to iMedia data, the scale of China's health care products market reached 250.3 billion in 2020, and products with sleep-aiding functions such as melatonin, aromatherapy essential oils, pillows and bedding, and sleep-aiding music have sprung up like mushrooms after rain. When "sleep-aiding" becomes an important means for brands to make profits, it also means that there is a lot of room for development in the "sleep" market, and a "sleep economy" has emerged.

Image source: iiMedia Research

It can be said that user demand is the hard indicator for measuring market potential, and the current sleep economy is showing a trend of diversified development.

For example, in the beverage sector, brands such as Mengniu and Want Want have used the business philosophy of medicine and food being of the same origin to launch new products. Mengniu launched a chamomile-flavored milk drink called "Good Evening", while Want Want launched a nutrient drink called "Dream Water" to soothe users' emotions and enter the sleep-aiding functional product market.

Although there is currently a huge market demand for sleep-aiding food and beverages, it is only possible to open up a new market landscape if brands launch functional products that meet user needs.

For example, in the health care product circle, melatonin is the most popular sleep aid. There are more than 70,000 notes about melatonin on Xiaohongshu, and more than 500 products. This shows how popular melatonin is in the consumer market. At the same time, the popularity of melatonin also indirectly confirms the young people's desire to have a good night's sleep and maintain a healthy lifestyle.

In the sleep-aid app market, various meditation and sleep-aid apps have emerged frequently, such as Snail Sleep, SleepTown, Tide, etc., which have integrated the power of technology into the sleep-aid market. On the one hand, sleep-aid apps can provide users with various soothing sounds and music to relieve users' anxiety and help more people improve their sleep. On the other hand, sleep-aid apps are rich in functions and can monitor users' sleep quality, physiological indicators, and various customized services to meet users' many needs.

In addition to the popular health product "melatonin", sleep-aid apps, and gimmicky sleep-aid drinks, there are also highly renowned brands in the sleep-aid market segment, such as De Rucci, which has annual revenue of over 4 billion yuan and helps users sleep well, and has also seen extremely high growth.

In an era of self-pleasing economy, more and more consumers pay more attention to emotional value and are willing to pay for their anxiety and lifestyle to calm their emotions. This is why the brand has won an opportunity for development. According to CCTV Finance's "First Time", as early as 2020, the market size of my country's sleep economy exceeded 400 billion yuan, and is expected to exceed one trillion yuan in market size by 2030.

Undoubtedly, the "sleep economy" has a bright future, and sleep-aid products have a new blue ocean that is waiting for brands to tap into. But for any brand, high-quality product quality and a deeply rooted product experience are the core of gaining user trust today.

3. Sleep+, creating a new consumption experience in the new era

The consumer market created by the sleep economy has huge potential, attracting many brands to enter the market. Sleep-aiding products represented by sleep-aiding beverages and sleep apps are still in the initial exploration stage. Technological sleep monitoring products can provide users with sleep quality reports, but the solutions provided by the apps seem scientific, but it is extremely difficult to fundamentally solve the user's insomnia problem. Those various products, coupled with gimmicky marketing, make it difficult for consumers to choose and distinguish.

The current sleep market has a problem that cannot be ignored, with strong user demand and insufficient supply of effective products. In the current era where user experience is paramount, if you want to win the hearts of users, you may be able to create a new user consumption experience from sleep+, allowing people to relieve anxiety in a more relaxed environment, to achieve the purpose of helping them sleep.

Only those products that can truly help users please themselves, relax their emotions, and solve their sleep pain points have the opportunity to help the brand win the hearts of users. They can also provide users with a relaxed, pleasant, and healthy lifestyle and become a brand that leads the trend of the times.

Looking at the sleep economy, the sleep-aid products that are so numerous are of varying quality and cannot fundamentally solve the pain points of consumers. Facing the blue ocean of the sleep economy, the entire industry is still in its infancy and is in urgent need of brands that can lead the category to prosperity.

Author: Mr. Bingfa

Source: Marketing Strategy (ID: lanhaiyingxiao)