Emma – The Sleep Company: Revenue up by 120% in first half of 2020

  • Emma more than doubled turnover in first half of 2020 to 44.3 million euros in the UK
  • Successful bed-in-a-box brand aims to maintain growth rate for YOY sales in entire 2020
  • Optimised product portfolio adapts to UK customers’ shopping habits

Despite economic turmoil in the recent months, Emma – The Sleep Company more than doubled its turnover in the first half of 2020, as its revenue has grown by about 120% compared to the same period in 2019. In the UK, the Frankfurt-based D2C brand achieved a turnover of 44.3 million euros in H1. The figures demonstrate that Emma’s recent strategy has paid off. For the second half of the year, the company aims to keep its growth rate equally high and wants to double YOY sales in the whole of 2020.

For H2, Santosh Marrivagu, new Head of UK and Ireland, wants to focus on the product portfolio. Having reviewed how single products and initiatives have scaled since Emma’s launch in the UK in 2016, he revamped the portfolio and introduced a new pricing model. Thanks to the significantly high demand of Emma Original mattresses, the company will now reduce the price for its pure foam mattress. The price reduction is enabled by economies of scale, process optimisations and more efficient material procurement. The mattress-in-a-box-brand passes the benefits on to its customers.

Santosh Marrivagu, Country Head UK and Ireland, said: “By achieving significant process innovations, we are able to give our customers the best sleep experience at a great price. Our goal is to maintain our dynamic growth while ensuring that all workflows and capacities are extended accordingly,” explained Marrivagu.

Emma mattresses are available in three price ranges: Essential, Original and Hybrid. While Emma Original and Emma Hybrid are the key products in the online shop, Emma Essential, the mattress in the low-price segment, is sold via marketplaces only. Some of the accessories such as sheets have been withdrawn from the portfolio, as they have not met the customers’ needs. Both the new pricing structure and the new product range are intended to attract different target groups. “As a direct-to-consumer brand, we get direct feedback from our customers and can quickly adapt to their needs and shopping habits”, said Marrivagu.

“As a Sleep Tech company, continuous innovation is a core element of our business strategy, not only regarding products and solutions we bring to our customers but also in how we organise and conduct our business. I am confident that the optimised portfolio will support Emma in achieving the revenue target for 2020 and thereby strengthen our leading market position in the UK”, stated Marrivagu.

The strategy reflects the difference between pure online players compared to Emma as an omnichannel brand aiming to become one of Europe’s leaders in bedding and sleep technology. “In countries where Emma enjoys a brand awareness of more than 30% as is the case in the UK, we observe that our brand drives consumer traffic to stores, helps improve conversion in store as well as online in the web shops of our partners and contributes to an increasing average basket,“ explains Dr Dennis Schmoltzi, Co-CEO of Emma.

Caption: New Country Head of UK & Ireland at Emma – The Sleep Company, Santosh Marrivagu (r.) with Dr Dennis Schmoltzi (m.) and Manuel Mueller (l.), founders and Co-CEOs of Emma – The Sleep Company. Copyright: Emma Sleep GmbH / Photographer: Moritz Reich, 2020.

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