German bedding retailer Emma Sleep is set to expand its presence across the Australasian market, with the brand growing its product range across New Zealand, and working toward ambitious, financial goals. Having sold more than six million mattresses across over 30 countries, the direct-to-consumer retail powerhouse has committed to boosting its product range in New Zealand, with plans to launch a new bed, pillow, and blanket range over the coming months. According to Emma Sleep
Sleep’s ANZ country head Simon Baumgarten, this strategy is in line with the brand’s long-term goal of generating 10 per cent of its global revenue across the Australia and New Zealand market.
Baumgarten told Inside Retail that the company grew by around 35 per cent over the last year. But, the rate of growth across the Trans Tasman was significantly outpacing its global growth. Between 2021 and 2022, Emma Sleep realised 103 per cent growth across Australia, and 185 per cent growth across New Zealand.
He partly attributed this to the brand investing millions of dollars into extensive product testing for durability, wear and resistance, and the accessibility of Emma Sleep products across different price points.
He also pointed to research showing that Kiwis average just over eight hours of sleep per night – second only to The Netherlands – and data showing that they are more likely to purchase larger beds, which is helping to drive higher average revenue per sale in the region.
While the Covid-19 pandemic helped to fuel online growth in particular, he said that demand hasn’t stopped following the easing of pandemic restrictions. Rather, he believes that Kiwi customers in particular are opting to purchase larger, and higher value household items such as beds through online channels.
As a result, Baumgarten said that the brand is continuing to introduce more products to market, and seeking new ways to scale and improve how Emma Sleep markets its products.
“We entered the Australian and New Zealand market because we want to bring our sleep expertise to as many markets as possible,” he said.
“We will be introducing more products to the New Zealand market based on how our previous products have been received, as well as on insights we’ve been able to garner in the last few months. [We’re] constantly improving and tailor fitting our products based on the feedback and preferences of the markets we enter.”
Baumgarten also observed that Australasian customers tend to skew to an older age demographic. In particular, he said that the number of consumers aged over 65 years old was “unusual” compared to other markets and said this presents distinct opportunities for Emma Sleep to grow market size and share across New Zealand in particular.
“A possible reason why Kiwis may be opting to buy larger sized beds is because almost half of the population is composed of families. therefore, they’d be looking for larger sized beds that fit a couple and maybe a kid,” he said.
“We [also] think that the reason why our transactions are skewing more towards the older customers is because the median age in New Zealand is [about] 38 years old.”
Rapid growth
Emma Sleep CEO Manuel Müller told Inside Retail in December 2022 that the organisation is still in the early stages of expansion across Australia and New Zealand. This is in contrast to European countries such as the UK and Germany, where the brand is already positioned as market leaders.
He added that Australian sales are expected to contribute between seven and ten per cent of its global revenue across 2023.
Meanwhile, Baumgarten added that the brand is seeking to capitalise on e-commerce demand through initiatives such as its 120 day trial and return period for used mattresses, along with free delivery and collection. This is expected to provide customers with more confidence in purchasing bedding online.
The brand is also utilising “mattress in a box” vacuum compression technology, which is reported to have improved the portability of its mattresses by 90 per cent, thus enhancing the brands logistical efficiency.
“The online distribution channel for large format furniture, including beds and mattresses, has advanced significantly in recent years,” he said.
Despite this growth in online sales, Baumgarten believes that the demand for retail isn’t diminishing any time soon.
“We’re currently doing our best to be visible in as many spaces as possible to capture demand,” he said.
More that saving cost
Emma Sleep is also focused on building on its partnerships with other brands across the Australasian market.
It recently partnered with Everyday Market – Woolworths online marketplace – and announced plans to form partnerships with online marketplaces and retailers across different sectors. According to Inside Retail, it partnered with Bedpost and Europe in New Zealand, where it is stocked in more than 3000 doors.
Baumgarten also said that Emma is working with charities including Habitat NZ and The Salvation Army. Rather than on-selling returned products as part of its 120-night trial policy, the brand is donating mattresses to these organisations.
“Because of these kinds of partnerships, we’re able to not just save on the cost of the return but we’re also able to make a difference in the lives of numerous kiwis in need nationwide,” he said.