“Early to bed, early to rise… Make yourself healthy, wealthy, and wise.” We all have been listening to this rhyme since childhood. But do you know that it isn’t just a nursery rhyme but a well-proven fact? Good sleep not only improves your health but also boosts your brain performance and mood. Despite knowing this fact, people of this era are deprived of sleep due to stress, work pressure, and busy schedules. You may feel that you obtain more time by giving up the sleep. Unfortunately, by doing so you are inviting numerous diseases and disorders ranging from obesity to dementia. This is the point where the role of “The Sleep Company” comes in!
The Sleep Company utilizes “Sleep Science” to produce various sleep products that ensure you get healthy and sound sleep. How? By providing a thoroughly researched premium quality sleeping mattress! Do you know it uses patented Japanese technology to produce its products? There are numerous astonishing facts about this company. You will come to know all of it through its business model described in this write-up.
The Sleep Company: A Brief Overview
Established just four years ago, The Sleep Company is an indigenous company that aims to reformulate our sleep culture. And that too through scientific innovation! It is the sole company that is keen to bring Asia’s comfort technology ecosystem into the 21st century. With its breakthrough smart-grid technology & design. But how does it work or how does it make money? We will explain it in the upcoming sections. Before diving deep into the business model, let’s have a brief overview of “The Sleep Company”-
|Company’s Name||The Sleep Company|
|Type of Industry||Comfort Technology Company|
|Parent Organization||Fit & Comfort Technologies Private Limited|
|Founders||Priyanka Goyal Salot, Harshil Salot|
|Headquarters||Mumbai (Maharashtra, India)|
|Operating Space||D2C (Direct to Consumer)|
|Market Valuation (FY22)||$86.1 million (Rs.713.25 crore)|
|Revenue (FY22)||Rs.56.2 crore|
|Net Profit/Loss (FY22)||Loss of Rs.11.56 crore|
|Competitors||Wakefit, SleepyCat, Duroflex, Purple, SleepWell, etc.|
Now we will delve into the “Business Model of The Sleep Company.” The business model is described in three parts namely-
- Working Strategy
- Revenue Sources
- Marketing Strategies
Working Strategy: How does The Sleep Company work?
It majorly works on a D2C model. The Sleep Company utilizes a strategic approach to produce exclusive quality products and expand its services. It works in the following ways-
1. Product Innovation
As you have read above, The Sleep Company heavily relies on research and development. Especially to innovate novel products to revolutionize sleeping patterns. It invests in the following to differentiate its products from the competitors-
- Advanced materials
- Latest technologies
- Supreme design elements
The company emphasizes continuous research and development to create innovative mattresses that prioritize comfort, support, and sleep health. It effectively combines the digital marketplace as well as its digital assets. Do you know the sleep company collaborates with the ex-DRDO scientist Dr.Tripathi for R&D? He is an expert in material science and sleep science. Therefore, he has helped to ensure the quality of raw materials as well as the durability of the end products.
2. Usage of Smart grid technology
The company claims that it initiated smart sleep technology by introducing smart grid mattresses. The SmartGRID technology was invented by DRDO scientists. We have discussed it in the above section. What is SmartGRID? You may ask. Well, it refers to a grid-shaped hyper-elastic polymer. It is specially used in mattresses, chairs, and cushions. Here, the grids’ walls will bend down according to your body curvatures like hips, shoulders, and head. Thus, it ensures that there is no pressure on any of your body parts. It is firm enough to support your spinal cord and flexible enough to adapt to your body shape. Also, it has over 2500 air channels that facilitate good airflow. Thus, it offers a cooling comfort while taking care of your health.
3. Portfolio of products
The Sleep Company began with the production of sleep mattresses. But now, it has expanded its product portfolio. As of now, its products include-
- Mattresses- With smart grid technology (a Japanese patented technology)
- Beds- Smart adjustable recliner bed
- Chairs- Smart grid chairs
- Seat cushions
- Back cushions
- Adjustable pillows
- Vehicle seats
- Gaming chairs
4. D2C Sales
The Sleeping Company operates primarily through a direct-to-consumer (D2C) model. It sells the products directly to customers through its website or other online platforms. Thus, it eliminates the need for traditional retail channels. By doing so, it can offer the products at competitive prices and have better control over the customer experience. Also, it leverages online marketing strategies to create brand awareness and drive customer engagement. We will discuss it further in the section on Marketing Strategies.
5. Customer Experience
It prioritizes providing an exceptional customer experience at every touch point. It offers numerous features like a hassle-free online shopping experience, transparent pricing, detailed product information, and easy payment options. Additionally, it may provide responsive customer support services to address inquiries, concerns, or issues promptly.
6. Trial Period of 100 nights
It offers 100 nights of the trial period where you can sleep on your new mattress. In case, you don’t like it, then you can return it and get a full refund. However, the refund policy gets complicated for customized mattresses.
7. Complicated Return Policy on Customized Mattresses
The accessories or products are replaceable only within 7 days of delivery. And that too only if the product has any manufacturing defect. The Sleep Company produces customized mattresses as per the size measurements provided by you. So if you cancel it, then it will be a huge loss for the company. So, the company mentions the following statement in its return policy-
No cancellations & refunds are allowed under any circumstances after 6 hours of order placement for Custom Size Mattress. Cancellation post size confirmation/dispatch of standard size mattress cancellation fees of Rs.1500/- will be applicable. Any size change in standard size mattress post-dispatch, before delivery, Rs.1500/- will be applicable. Any size change after delivery of the standard mattress below mentioned charges will be applicable-
- For 6 Inch height mattress: Rs.3000/-
- For 8 Inch height mattress: Rs.4000/-
- For 10 Inch height mattress: Rs.5000/-
8. How can you buy the products of “The Sleep Company”?
To place an order, you need to follow the steps given below-
Step 1: Browse the product selection section of the official website
Explore the available mattress options and other sleep-related products offered by The Sleep Company. It provides detailed descriptions, specifications, and customer reviews to help you make an informed decision.
Step 2: Select the desired product
As you know, The Sleep Company has a diverse portfolio. You can select any product from them. For instance, if you want to buy mattresses, select the appropriate mattress size from the available options. Depending on the product, select other features such as different firmness levels or additional features like pillows or mattress protectors. Customize your order according to your preferences.
Step 3: Add to Cart
After selecting the desired product, add it to your shopping cart. You can also review the selected product.
Step 4: Provide Shipping and Billing Information
Enter your shipping address, contact details, and billing information as required. Ensure that you provide accurate and up-to-date information to ensure successful delivery.
Step 5: Place the order
Now, you need to place the order and confirm it by paying for it.
Step 6: Select the payment method
Select your preferred payment method from the options provided, such as credit card, debit card, or online payment platforms. Such as Paytm or PhonePe. Now, your order is confirmed and will be delivered to you at the date and time.
Revenue Sources: How Does The Sleep Company Make Money?
It earns money through diverse revenue sources. Some of the major ones are-
1. Sale of Products
Being a D2C company, it earns a major chunk of revenue by selling the products directly to the customers. When customers purchase sleep products like mattresses through the company’s website or other online platforms. Then, the company generates income from the sale. As you have read above, it offers various sleep-related products such as pillows, mattress protectors, bedding accessories, and sleep aids. Revenue is generated through the sale of these products to customers.
2. Collaborations and Partnerships
The Sleep Company enters into different collaborations or partnerships with other businesses or brands. This could include joint marketing campaigns, co-branded products, or special promotions, generating revenue through these collaborations. For instance- for EMI payments, it partnered with Snapmint and ICICI bank. Thus, it provides exclusive discounts on the price. Also, it has e-retailing partners like Amazon and Flipkart.
The Sleep Company employs various marketing strategies to promote its products and reach its target audience. Basically, its marketing strategies involve building awareness about the benefits of its products made through SmartGRID technology. Some of the common marketing strategies are-
1. Video Advertisements
The “Forget Memory Foam” marketing campaign was one of the most popular and effective marketing strategies of the company. It featured Bollywood actor Anil Kapoor for the promotion of the brand’s latest mattress technology.
2. Social Media Presence
The Sleep Company maintains an active presence on popular social media platforms such as Facebook, Instagram, Twitter, and YouTube. It shares product updates, customer testimonials, sleep tips, and engaging visual content. Thus, it connects with its audience and encourages interaction.
3. Affiliate Marketing
The Sleep Company collaborates with affiliates or referral partners who promote their products on their websites, blogs, or social media platforms. Affiliates earn a commission for each sale made through their unique referral links, expanding their reach and driving sales.
4. Public Relations (PR)
The Sleep Company may engage in PR activities to secure media coverage, press releases, or interviews. This helps increase brand visibility and credibility in the industry.
5. User-generated Content
The Sleep Company encourages customers to share their experiences through reviews, testimonials, or social media posts. They may run campaigns or incentives to encourage customers to create and share user-generated content, which helps build social proof and trust among potential customers. Thus, it acts as an effective marketing strategy too.
The Sleep Company operates on a direct-to-consumer (D2C) model, providing high-quality mattresses and sleep products. By selling directly to customers, they offer competitive prices and maintain control over the customer experience. The company focuses on product innovation, emphasizing comfort and sleep health. It engages with customers through its online platform, offering detailed product information and personalized support. Convenient features like home trials and responsive customer service enhance the buying process. Logistics and fulfillment ensure timely delivery, and warranties provide peace of mind. The Sleep Company’s business model prioritizes customer satisfaction and aims to deliver the best sleep experience.