In the early 2010s, the Millennial generation gave rise to a slew of direct-to-consumer brands, such as Everlane, Warby Parker and Bonobos. Millennials were both the target market and, in some cases, the founders of this new breed of retail business, so it’s no surprise that many of them focused on fashion and other discretionary purchases relevant to consumers in their mid-20s. But now, as Millennials and older Gen Z shoppers begin to enter the next phase of their lives, inc
s, including kids, mortgages and the aches and pains of early middle age, their spending is shifting to their families, homes and health.
As Temple & Webster CEO Mark Coulter told Inside Retail, Millennials “are coming into their prime furniture-buying years, getting married, maybe some of them are having kids moving out, renting bigger places or buying places”.
This generational shift is leading some brands to adapt their offerings to Millennials’ changing needs. For instance, bedding brand Sheet Society, kids’ mattress brand Teddy Australia and online rug brand Miss Amara have all introduced new ranges for babies and children.
And with Millennials’ spending power estimated to be US$2.5 trillion, it’s easy to understand why.
Here’s a closer look at how Teddy and Sheet Society are tapping into the growing demographic of Millennial parents.
The generational disruptors
Born between 1980-1995, Millennials are known for their thoughtful purchasing habits that place brand value and actions ahead of tradition, according to IMARC market research.
Meanwhile, Gen Z includes those born between 1996-2012 and are seen as practical consumers who have an affinity for technology and tend to research products heavily before making a purchase.
Having lived predominantly or entirely with the internet, these generations are the most likely to purchase via social media compared to older generations.
Future generations’ sleeping sound
Teddy Australia is the brainchild of Marc Levin, who co-founded the brand with his childhood friend Daniel Hoffman in December 2023.
Levin saw a gap in the market for a kids’ mattress brand that addressed parental concerns around sleep quality and safety. As a new in-the-market brand, Teddy has focused on building a product offering that appeals specifically to the way Millennials and Gen Z make purchasing decisions.
The brand’s target market is parents of young children between three and 10 years aold. They are often buying their child’s first mattress or choosing to upgrade their child’s current mattress to a better quality mattress at an affordable price.
Levin told Inside Retail that Teddy’s mattresses are “designed by parents for parents” specifically with children’s well-being in mind.
While the brand just launched in December, sales in January have increased by 117 per cent month on month, and February sales are currently tracking in line with January. The business is expecting double-digit growth.
Levin designed the brand’s zippable and washable mattress lining to reduce the time parents spend changing bed linen. In his own experience, he said that it has saved his family countless hours of sleep.
“In a world where we are now more conscious of waste, the Teddy mattress grows with my kids and supports their spinal development for early and later ages, ensuring that I did not have to purchase different mattresses and thus reduced the landfill or recycled waste,” Levin told Inside Retail.
Solving society’s sheet conundrum
Australian brand Sheet Society was founded in 2017 by newlywed couple Hayley and Andy Worly, who were frustrated by the snooze-worthy bedding options on the market, which were lacking in high-quality, ethical and value-for-money sheets.
Intending to provide consumers the ability to shop for sheets as they do fashion, Sheet Society allows customers to mix and match colours, fabrics and sizes, as opposed to being forced to purchase a whole set.
The brand, which generates $15 million in annual revenue, offers a range of sheets, pillowcases, cushions, blankets, quilts and pillows in on-trend colours and designs. It only uses the best natural fabrics, including GOTS-certified organic cotton, French flax linen, recycled linen and Mulberry silk.
In January, seven years after launching, the founders expanded into bedding for children and babies after they discovered another gap in the market.
As parents of young children themselves, it was a natural progression to offer a range that caters to newborns, toddlers and tweens, with the same innovative designs as its adult offerings. These include an extra-wide fitted sheet that hugs the mattress, invisible zippers on quilt covers, an extra-deep fold pillowcase, and OEKO-Tex certified fabrics, which contain no harsh chemicals or dyes.
With a mission to ‘make better bedding’, expanding the product range made sense, founder and CEO Hayley Worley, told Inside Retail.
“Our vision is to continue being experts in everything for the bed – rather than grow into categories that are too broad from our original offering and what our customers want from us,” Worley added.