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Sleepyhead bed5/16/2023 After rolling out a website, the startup had factored in that it needed server space sufficient for around 10,000 visitors. There were more teething troubles for the new brand. “Overstocking also is a crime because it hits the cash flow,” says Joseph. This time, Joseph was well prepared to meet an unexpected surge in demand. Two months later, in early 2018, this was the next big learning for the fledgling CEO. “You just can’t go out of stock,” he says.īut then excess stock is also a crime. Joseph was escalating calls to his colleague, who did the same in return. The two-member team couldn’t handle a sudden rush of orders. After spending money to acquire a customer, he underlines, if one goes out of stock, it is a crime. “We were out of stock.” The lesson learnt was quick: The online space is unforgiving. The company, even by bullish estimates, had a stock for three months, which meant 30 mattresses. Then came the move to put the mattresses on online marketplaces. Launched in October 2017, Sleepyhead clocked measly sales of three or four mattresses a month till December. The first bout was not far away it was lurking around the corner. Sleepyhead got a seed capital of ₹70 lakh from the company, and Joseph was about to get what he didn’t hope for: Sleepless nights. Though the idea and concept didn’t look too comforting, Joseph got backing on the basis of his stellar track record as marketing director of Duroflex. What this meant was that it would bypass the traditional retail footprint and channels of Duroflex, and would only be made available online. It was being positioned as a direct-to-consumer (D2C) brand. What exaggerated the odds for Sleepyhead was its business model. The 10-member board, which had been used to 10-11 percent positive Ebitda in Duroflex for years, was staring at potential losses. They remained mum for a few hours,” recalls Joseph, adding that the marathon meeting went on for six hours. “For the first three years,” underlined the co-founder and chief executive officer (CEO) of Sleepyhead, “the company will post around 5 percent negative Ebitda.” The loss talk triggered bedlam.įor the next few minutes, there was a deafening silence. “I didn’t have the Duroflex cushion,” recalls Joseph, who also didn’t want to use a ‘From the house of Duroflex’ branding on the products. Reason: The young third-generation entrepreneur didn’t want to use the mother branding. Being one of the promoters of Duroflex-which was set up in 1963 by Joseph’s grandfather PC Mathew-was of little help. The task, though, was not going to be a sleep walk. The online audience, he underlined, is very young and needed something they could relate to. “ Duroflex was a very mature brand,” he reasoned. “I was trying hard to convince them,” recounts Joseph, who had earlier had stints with JPMorgan Chase and Tesco, and had completed a dual master’s in advertising and marketing from Leeds University Business School in England. Not willing to back off, Joseph was ready to go to the mattresses. The meeting stretched out over the next few hours. An online-only brand, he stressed, could cater to the needs and tastes of the digital-native millennials and Gen Z. Pushed to the back foot, Joseph tried to foam up the argument. It does not store any personal data.How Purplle is solving beauty for women in tier 2 cities and beyond The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. The cookie is used to store the user consent for the cookies in the category "Performance". This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". The cookie is used to store the user consent for the cookies in the category "Other. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly.
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