It is important to get a good night’s sleep to be healthy and have a better working capacity the next day. However it is important to note that identifying the right mattress is not an easy process.
Now, let’s welcome The Sleep Company, a young Indian company that is trying to break through in this market. They have approached the mattress industry using the latest technologies and focusing on the customer.
Company Highlights
| STARTUP NAME | THE SLEEP COMPANY |
| Headquarters | Mumbai, Maharashtra, India |
| Industry | Furniture and Home Furnishings Manufacturing |
| Founders | Priyanka Goyal Salot and Harshil Salot |
| Founded | 2019 |
| Website | thesleepcompany.in |
The Sleep Company Success : Overview
Source: ET Retail
The Sleep Company is a company that focuses on providing consumers with quality sleep through unique products. This ethos is reflected in the company’s first product, The Sleep Company Smart Grid Mattress.
Thus, bearing the mission of improving the quality of sleep all over the world The Sleep Company focuses on the use of Smart Grid Technology in the sleep products, offering them as the most appropriate and efficient way of getting a proper and healthy sleep. Their goal is to make the consumers’ lives better by providing them with genuine, delightful products.
The Smart Grid’s column structure is designed to flex and accommodate the shape of the human body. It offers what can only be described as a firm yet comfortable hug to the back and keeps the spine in what can only be described as an optimal position while the flexibility of the walls of the grid applies gentle pressure to other parts of the body such as the hips and shoulders. This design aims to provide great sleep quality and reduce discomforts like neck, back, and other body aches to help you sleep well.
Due to the COVID-19 pandemic, the furniture industry experienced a lot of growth in the year 2021 as people invested in improving their homes and stayed at home most of the time. Nevertheless, the market faced significant difficulties in 2022 as the pandemic measures were eased and the inflation rate increased.
As per the data presented by Statista, the furniture industry in India earned $5 billion in sales in 2023 and is forecasted to grow at a CAGR of 7. The acceptance level is projected to increase from 2023 to 2028 at a 77% compound annual growth rate. This growth is attributed to factors such as increasing population of the middle income earners and the rising appreciation of interior design. Furthermore, the ubiquity of e-commerce platforms has also played a key role in this success, according to Statista.
The Sleep Company Success – Business Model
One of the key aspects of The Sleep Company’s economic model is based on the direct-to-consumer (D2C) marketing approach. The company here provides a broad selection of mattresses, pillows and other sleep related products that the customer may require with the added advantage of ordering the products from the comfort of their homes through the various outlets provided.
This strategy makes it possible for the company to sell products directly to the clients hence avoiding the middleman and ensuring that they offer their products at competitive price as well as guaranteeing high standards in accessibility and satisfaction. Furthermore, the lack of showroom costs within this model means that resources can be directed towards other important aspects such as developing new products and providing customer services.
In terms of strategy, The Sleep Company has expanded its operations by creating physical touchpoints in key Indian metropolitan areas in the form of experience centres. Because mattresses are bought more often with a touch-and-feel approach, these centers enable customers to touch and feel products before finalizing their decisions.
The Sleep Company Success : Revenue Model
The revenue model of The Sleep Company, similar to other mattress and sleep industry players, will primarily depend on the direct sale of mattresses and other products, besides any other streams of income.
Here’s a breakdown:
1. Direct Sales of Mattresses: Based on the information given, the main source of income for The Sleep Company could be derived from the sales of mattresses. This can include memory foam, hybrid, latex, or specialty mattresses that are created to address certain concerns such as back pain or heat retention. These mattresses can be sold through various modes of distribution such as through their own website, through intermediaries, or through their own physical outlets in case they have them.
2. Accessories and Add-ons: Moreover, The Sleep Company may also provide other products and services related to mattresses with a view of improving the quality of sleep. Some of these could include pillows, mattress protectors, bed frames, adjustable base, sheets, and blankets. These products usually carry a higher profit margin than mattresses and are likely to help boost revenue.
3. Subscription Services: Some mattress sellers have started offering services where customers pay a certain amount each month and in return they get a new mattress every few years or other services such as mattress cleaning or repair. This can help create a passive income stream for The Sleep Company, thus ensuring a relatively stable revenue stream.
4. Partnerships and Collaborations: The Sleep Company can also use other trademarks or brands for developing new products or special edition mattresses under both brands. These partnerships can further assist in growing the base of its customers and tapping into new markets.
5. Warranty and After-sales Services: The Sleep Company can also earn revenue from the sales of warranties or other services that are provided to the clients after purchasing the mattresses including mattress disposal, recycling or even through extended warranties. These services are beneficial in that they can offer assurance to the customers and also increase revenue for the company.
6. Data Monetization : Some of the mattress firms gather data from their customers on sleep patterns and preferences by using smart mattresses or sleep tracking devices. This data can be stripped of all personal identifiers and then sold to other companies, for instance, health researchers, insurance companies, or even marketers for more revenue.
The Sleep Company Success – Challenges Faced
The Sleep Company faced during its innovation process especially in the development of the Smart Grid technology. Along the way, the team encountered issues such as research and development and manufacturing problems. Nonetheless, they went ahead and came up with a product that can be described as unique and revolutionizing the way of sleep.
One of the biggest challenges stemmed from the lack of a national asset-light fulfillment network that prevented The Sleep Company from achieving its full growth potential. This led to some issues such as problems with order fulfillment and pick up, especially in the case of large orders. Due to the need to increase operational output, the company introduced what is known as a single Air Waybill for Multi-Parcel Shipments.
Additionally, the extremely sensitive nature of the product, which is a robust yet luxury mattress, raised other concerns with regard to possible shipment damage. When expanding business operations, The Sleep Company has to address various challenges related to product quality preservation, pick up organization, and delivery delays, in order to avoid business disruptions and customer dissatisfaction.
The Sleep Company’s: Mission And Vision
The main vision of The Sleep Company is that everybody can feel the impact of a proper night’s sleep. This is because their main goal is to ensure that the quality of sleep is improved throughout the world.
Since the ability to sleep well is crucial to the overall health and happiness of people, The Sleep Company’s goals include more than just the production of mattresses. They do not stop at offering high-quality comfort technologies; they want to set the pace in the development of next generation ‘comfort-tech’ solutions.
Their ideas go beyond the conventional bedroom mattresses and encompass a wide range of new concepts that are intended to redefine sleep. Thus, the company aims to improve the comfort technology in order to enhance the quality of sleep and relaxation for the people around the globe.
The Sleep Company – Name, Tagline and Logo design
The entity known as “The Sleep Company” exemplifies its core mission through its very name: As a result, the overall goal is to offer a broad array of sleep solutions and thus demonstrate the company’s dedication to tackling all aspects of sleep.
This corporate strategy that reads “Wake Up Happy” is a catchy call to action that aligns with this objective. The narrative emphasizes the value proposition that the company wants the consumers to experience with their products. In addition, the logo, which is two squares intertwined, presents balance and unity, as well as the company’s commitment to the delivery of quality sleep solutions.
This is realized through the use of the company’s innovative SmartGRID technology that is designed in a way that it responds to individual sleep patterns. This enhanced element enhances the brand’s image and sustains its commitment to providing relaxation and ultimate comfort.
The Sleep Company Success – Growth
The Sleep Company has been a phenomenal journey and it has reached a significant Rs 100 crore run rate in November 2021, in its second year of operation. This milestone lays down a good foundation to support the company’s goal of reaching a turnover of Rs 1,000 crore in the next four to five years. The young company was launched only two years ago, but it has already increased its sales by 400% and is now among the four leading brands on Amazon and has gained the trust of over 200,000 customers.
Out focusing on The Sleep Company, it has stepped up its game by introducing products and services that include those with the patented SmartGRID technology. Hence, the company’s growth can be explained by the fact that consumers will be willing to purchase products from the company since it offers unique products that are not the same as those of other mattress producers who are still using old memory foam technology.
The Sleep Company- Competitors
- Wakefit
- Sunday Mattress
- Flo
- Sleephyhead
Conclusion
Hence, the significance of having enough sleep should not be overemphasized since it has a positive impact on health and performance. It is, however, difficult to identify the right mattress, and this is where The Sleep Company has come into the market with a shot at becoming a potential rival with the Smart Grid Technology. Thus, using the direct to consumer approach and providing physical points of contact the company managed to become easily reachable and credible to meet consumer needs.
In addition, through direct selling, accessories, subscriptions, partnerships, and aftersales, The Sleep Company’s revenue model provides a comprehensive approach to generating sustainable revenue streams. However, The Sleep Company has not forgotten about its mission of improving sleep quality across the globe as it still encounters some difficulties in the innovation process. The Sleep Company can be a very potent threat, especially since it is a young business that has been growing at a remarkable pace.
