Eve Sleep Plc , is a UK-based e-commerce business that sells mattresses online. It was founded in 2014 and launched to the public in December 2014. Eve Sleep manufactures 4 different mattresses. The current Original has a three-layer design incorporating memory foam. Eve sells online and reduces its shipping costs by rolling the mattress into a box. It can also be bought in High Street stores.
History
Origin
In the 2010s, mattress company startups such as Eve began to emerge with a new business model to meet consumer and market demands. These new companies had a limited selection of products made from a few key components at a fraction of the high street costs. They also aimed to simplify the decision process for customers, offering generous trial periods, quick delivery and social media marketing. Jas Bagniewski was already in the mattress industry, along with James Fryer. They sold over $2 million worth of mattresses in one day on a Groupon flash sale in 2011.The company went on to sell 75,000 mattresses online in 18 countries. The idea for Eve grew from their experience and through years of product testing, customer feedback and reviews. Eve Sleep was founded in October 2014 in London by:
The company was officially launched in December 2014.
Funding rounds
In 2015, the company closed a seed-round of funding worth £600,000. Investors included FJ Labs, DN Capital and Octopus Ventures. In 2018, the company looked to raise a further 15 million pounds. Octopus Ventures and DN Capital invested for a second time in a Series A round to the value of £2.5 million in October 2015. And in July 2016, Eve Sleep secured £6.9m in Series B funding. This round included funding from Channel 4, the British public-service television broadcaster, via its Commercial Growth Fund. Channel 4 offers companies not currently advertising on television in the UK, the opportunity to launch a TV ad campaign on Channel 4, by exchanging equity stakes or striking revenue share arrangements.
Initial growth
The company sold more than 11,000 mattresses in its first year with a turnover of more than £3.5 million, averaging monthly growth of 25%.
Management change
By 2017, the revenue had increased to £27 million, but the operating losses also increased to £19 million in the same period, with over half the revenue spent on marketing. The founding CEO, Jas Bagniewski, was asked to step down in July 2018 due to the poor financial performance, and was replaced in September 2018 by James Sturrock, the former CEO of Moonpig. At the time Bagniewski was asked to stand down, the company share price was 67p per share. In the first 6 months under new management, the share price dropped to 10p per share. In September 2018, the new CEO said that the company needed an injection of capital, and proposed a share placing to achieve it.
Product
Eve Sleep sells four mattresses, Light, Hybrid, Original and Premium. Bed names and size specifications vary in different countries. The mattress exists in all standard sizes in UK and in US, and fits all IKEA frames. The company also manufactures custom-sized mattresses on demand. The Original and the Light mattresses features a knitted two way stretch fabric cover in white with a distinctive yellow side panel. The mattress is vacuum packed and folded into a box, and can be easily delivered and moved up staircases, unlike traditional mattresses. When unpacked, the mattress recovers its original shape and is ready to sleep on within hours. This method also cuts the delivery cost. Eve Sleep's products are designed and made on demand in the UK and United States. The company used to claim to make ''"the world's most comfortable mattress" and "the perfect mattress" at the third of the price of an equivalent high street mattress.
Business model
Eve's business model features direct online sales, strong customer service and savvy social media marketing. Its online platform allows the company to offer its mattresses at affordable prices. The firm is operating in the UK, the US, Germany, France, Belgium, Luxembourg, Austria, Switzerland, and plans to expand further. Eve Sleep's goal is to become a global household brand.
Marketing
In December 2015, the mattress company launched a long-form copy advertising campaign across the London Underground showing its distinctive yellow mattress border. Channel 4's investment saw Eve Sleep launch a television advert across its channels. In June 2016, Eve Sleep also launched its "Nap Station". Located at the Old Truman Brewery, in East London, the pop-up nap station was a co-working space come nap station equipped with beds. The "Nap Station" allowed people to experience the brand, try Eve mattress and encouraged them to enjoy the benefits of a power nap. Visitors could benefit from free Wi-Fi and charging points, and artisan coffee.
