In the past decade era, the mattress industry was popular due to its fierce competition and its products. Nevertheless, no one could term the market industry as a technology-based industry. Recently, many firms are using technology innovations and creativity to produce quality mattress products. Startup firms like Casper Sleep is an example of a tech firm that deals with mattress production using developed tech. Casper and other firms dealing with the sale of the mattress transformed the mattress business from an unfair environment to a consumer-friendly environment. According to a report by the Keybanc Capital Markets, the sales of online beds in the domestic mattress industry improved from zero in 2014 to 17% last year.
Integrated, data-driven, and revolutionized marketing plan assisted in improving the Casper sleep startup, this is according to Casper in the Filing. Besides that, over the past half-decade, Casper firm was able to attain more than one billion comments on the social media platform. Casper executive officers and planners expect that in the next few years to come, their retail shops will increase from 60 to more than 200 stores. According to Casper, e-commerce sales increased by more than 100% in cities with retail stores compared to those with no.
Casper startup proved that the omni-channel trend is of significant importance. For the web-native customers using Shopify, the retail stores are of considerable significance. According to the Shopify director of product Arpan Podduturi, after a breakthrough in online trading, it’s better to venture into expanding to the offline mode. He adds that in the future, the cost of purchasing a product will be higher compared to the acquisition cost. Hence there will be a great comeback in the physical stores since they use online sales data to come up with suitable places.
However, Casper encounters the challenge that faces many tech IPO of huge losses and colossal aspirations that are hard to prevail. In 2019, Casper startup met a loss of $95 million. Expensive marketing expenses are one of the major causes of the significant loss involving the startup firm. From 2016 January to December 2019,the firm invested more than $420 million in the marketing department. However, Casper still faces stiff competition from its rivals Purple Innovation. Creative and innovative digital marketing strategies assist in making PRPL accessible. However, compared to Casper, the finance sector of PRPL is in a different class. In the latest quarter, PRPL announced they had a profit of $8.4 million. On the other hand, Capers in the same quarter reported a net loss of $23 million.
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