![]() ![]() ![]() The main challenges for DTC players continues to be awareness in an increasingly fragmented market and the preference that consumers have to physically try multiple products before making the purchase decision 2. Nectar Sleep is offering a 365 day money back guarantee, lifetime warranty bed in box delivered to the door. The below video shows their recent ad campaign They also claim that their product construction is superior by having the most comfortable mattress in the market. They are offering a 365 day money back guarantee in addition to lifetime warranty. Pathways to a Just Digital Future Watch this tech inequality series featuring scholars, practitioners, & activistsĪ new D2C entrant Nectar sleep is further taking customer centricity and trialibity to a new level. In a 2015 video below, the CEO of Casper shares how his product is superior and ultimately improves customer experience. Casper tried to solve the pain of buying a mattress in a retail store and prided itself on both having superior customer experience and a better product. They were able to also offer a competitive product at a cheaper price point by eliminating the fixed cost associated with running retail outlets, sales staff and multiple product offering. Instead of migrating more and more sales online to realize potential cost savings it expanded retail, realizing some synergies through acquisition but continued to lose market share to ever increasing online players, including the likes of Amazon and Wayfair.ĭ2C players such as Casper were able to ship mattresses in compact boxes, right at the consumer’s doorstep and offer a 100 day money back guarantee. Mattress Firm, didn’t believe Direct to Consumer (DTC) upstarts such as Casper posed a credible threat and were late to leverage the bed in a box mattress category. It instead, heavily bet on expanding footprint, to a point that across the country, several Mattress Firm stores were located within a few block of each other 1. Like its retail peers, Mattress Firm miscalculated the threat of e-commerce. So how did US’s largest Mattress retailer join several large retailers such as Borders, Sears, and Forever 21 among others to become a digital loser? In the age of e-commerce, Mattress Firm aggressively expanded store footprint, growing from 700 stores to over 3500 stores 1 in little over five years including the acquisition of two of its retail competitors Sleep’s and Mattress Barn. It has since emerged, after closing several hundreds of stores. In 2018, US largest mattress retailer, Mattress Firm, filed for chapter 11 bankruptcy protection.
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