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The company plans to start operations in Japan by the end of this year

Earning consumer trust and acceptance is the first step any brand takes. The case of the direct customer category is no different, especially over the last year when the category appears to have seen a significant increase. In an effort to promote its brand, the D2C sleep solutions company, The Sleep Company claims to have increased its marketing spend eight times to Rs 8 crore in FY22, Harshil Salot, founder of The Sleep Company, told BrandWagon Online . Interestingly, the company plans to spend all of that money on digitization. “We will continue to focus solely on advancing The Sleep Company in the digital ecosystem. We’ll be using a mix of Google, social media like Facebook and Instagram, marketplaces like Amazon and Flipkart, and native advertising to reach both the top and bottom of the funnel, ”added Salot. The company, which recently brought on Anil Kapoor as a brand ambassador, claims that its marketing spend in FY21 was around Rs.1-1.5 billion.

In 2020, 35% of orders were shipped in-house, while the remaining 65% were shipped via a marketplace, according to data from market research company Statista. In 2019, the proportion of self-dispatched orders was significantly lower.

Comfort Grid Technologies Private Limited, the parent company of The Sleep Company, had sales of Rs 74 lakh, Tofler for its first year of operation. “FY20 (November 2019) was our starting year, so our focus was on reaching the right audience and attracting the right people. Marketing was a big part of that effort, but not a cause of loss. We were profitable in FY21 with PBT of Rs 1.04 billion, ”Salot said. The company claims that its marketing spend increased 10 times in FY21 compared to FY20 which was around Rs 10-15 lakh. In addition, sales increased 15-fold in FY21.

The Sleep Company, which currently sells products across the entire range of sleeping comfort, plans to leverage its patented smart grid technology and launch a range of seating comfort products such as office chairs, sofas, and seats that cover roughly three to six in the product pipeline are months away. The company also plans to launch offline experience centers in metropolitan areas in the next fiscal year. “It won’t be a point of sale, but a point of experience, because many people in this segment are still looking for touch and feel. Depending on what we learn from the subways, we will expand these centers into tier 2 and tier 3 cities. Also, about 35% of our business comes from Tier 2 and Tier 3 cities, so there is obviously a lot of awareness and acceptance of trying different technology products even in smaller cities in India, ”noted Salot.

In addition, the company plans to expand into international markets. For example, the company plans to start operations in Japan by the end of this year. It is also examining the development of the Middle Eastern countries. Currently, 60% of the company’s revenue comes from its own website and the rest from marketplaces like Amazon, Flipkart, Pepperfry and Livspace. It claims to serve over 3,000 customers each month and expects that number to double in the October-December quarter.

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