The Sleep Company earmarks nearly INR 80-85 crore for ad spend in FY25

Eyeing profitability by the end of FY25, The Sleep Company (TSC) has embarked on its brand-building journey for the upcoming 12 months, allocating nearly one-third of its expenditure to these activities. Having launched its 100^th store in India, it wants to solidify its market position by enhancing its omnichannel presence.

To support this goal, the comfort-tech brand has set its advertising and marketing budget to be INR 80 crore to INR 85 crore for FY25. While 75-80% of this expenditure will be on digital platforms, traditional media spending will be around 20-25%.

Within five years of its inception, TSC claims to have achieved INR 500 crore annual recurring revenue (ARR). It opened its 100^th company-owned, company-operated (COCO) store in Mumbai today, two years after venturing into offline retail. Its first store physical outlet opened in Bengaluru in June 2022.

Ripal Chopda, chief marketing officer of TSC, said, "Through our COCO model, we control the in-store experience, and our sleep labs give buyers a first-hand touch and feel of the technology behind our products, elevating the customer engagement. We are now gearing up for a new phase of growth, driven by strategic marketing initiatives predominantly towards brand building initiatives. Our focus will be on creating more personalised and engaging experiences for our clientele, leveraging data-driven insights and innovative campaigns to elevate our brand.”

TSC’s marketing blueprint includes a significant push in digital marketing, driven by a tailored media mix model for each market. These media channels will include platforms such as TV in regional markets, print media, and social media. As part of its marketing strategy, it has been leveraging its collaborations with prominent celebrities like actors Anil Kapoor and Jim Sarbh to engage with its existing and potential consumers.

The company stated that it is well-positioned to reach the INR 1000 crore revenue mark in the next two to three years, driven by a comprehensive growth strategy, with expansion plans across India. It has doubled sales every year since inception, documenting a 2.3X surge in its sales last year.

TSC drives 85% of its sales from its omni-channel presence, including physical stores and online, through its website. Its market share for office chairs in India witnessed a 10X growth since it forayed into the segment in 2022. It is looking to double market share in the category in the next 24 months, after the recent launch of its ErgoSmart by The Sleep Company chair brand.

Statista estimates India's mattress market size to be around $254.60 million currently, and expects this to grow annually by 4.86% (CAGR 2024-2029). There is an increasing demand for orthopedic mattresses as more people recognise the critical role of quality sleep and spinal health. TSC wants to grab a larger pie of this market, by highlighting the merits of its product line.

“Innovative products, a strategic omnichannel presence, and a determined focus on customer satisfaction have fuelled our tremendous growth and expansion,” TSC’s co-founder Priyanka Salot said, “We believe that integrating AI into our solutions will further enhance the customer experience.”

Since founding the company in 2019, she, along with co-founder with Harshil Salot, has expanded TSC’s product range to include mattresses, sofa, pillows, cushions, bedding, office chairs, smart recliner bed, etc. The brand’s patented SmartGRID technology, developed with a DRDO scientist, uses hyper-elastic polymers to its original form even after being stretched ten times its actual length, to offer better sleep and sitting solutions.

Priyanka is currently focused on executing the brand's omnichannel strategy, which aims at launching over 25 comfort boutiques this year. Additionally, she is eager to continue the brand's expansion in the Japanese and the UAE markets.