Dennis Schmoltzi (left) and Manuel Müller

The founders of the Emma Sleep online store watch the development of new mattresses in the laboratory.

dusseldorf The Emma mattress online store closed again last year with record sales. “Last year was not easy, the entire industry suffered from difficult economic conditions,” says Handelsblatt co-founder Dennis Schmoltzi. “We are therefore even more pleased that we have once again clearly exceeded our own expectations and have grown stronger than originally planned.”

The company increased its sales in 2022 by 35 percent from 645 to 873 million euros and sold 2.3 million mattresses, most of which it produced itself. The sales target was 800 million euros.

According to its own statements, the company has made a steady pre-tax profit for five years. “We can finance our million-dollar investments in research and development with our own profits,” says Schmoltzi. Since 2020, 50.1 percent of the startup has been owned by the family business Haniel, with Schmoltzi and his co-founder Manuel Müller holding the rest of the shares.

Apart from German market leader Bett1, Emma is the only major online retailer to have seen the mattress trade boom in Germany survived – and the only one that continues to grow at double-digit rates. At times, more than a dozen start-ups battled for the market, many of which had to declare bankruptcy.

The best jobs of the day

Find the best jobs now and
be notified by email.

The uproar was sparked nine years ago by the American company Casper, which expanded with prominent investors such as Leonardo DiCaprio and was valued at $750 million just three years after it was founded. But now the former industry star has crashed and pulled out of Europe. British company Eve Sleep, which left Germany in 2018, had a similar experience. Meanwhile, Eve Sleep has filed for bankruptcy.

Emma has triple-digit growth rates in South America

The German pioneer of mattresses sold online, founder Adam Szpyt’s company Bett1, had a turnover of more than 180 million euros in Germany with its Bodyguard mattress in its prime. But even on Bett1, sales have been falling for years and should now only be around 130 million euros.

Emma, ​​for her part, is growing globally and already sells mattresses in some 30 countries. The company now sells its products not only in its own web stores and online marketplaces, but also in the stores of more than 200 retailers. However, according to co-founder Müller, Emma still does more than 80 percent of sales online.

>> Read also: Funding for German start-ups collapses

Growth rates are particularly high in South America. In Mexico, for example, where the company also has its own branch, sales grew 179 percent last year. However, business has so far been at a very low level, with Emma still generating around 80 per cent of her sales in Europe.

However, in the domestic market of Germany, the boom seems to have slowed down a bit. Even when asked, Emma’s management did not give any figures for the German market. It speaks only vaguely of further growth. More recently, Emma’s turnover in Germany was estimated at around 80 million euros. The retailer is currently offering deep discounts in the online store.

The corona pandemic is slowing down business in China

The company is also experiencing a setback in China. In fact, the country had announced it as an expansion target last year., wanted to open at least 30 stores a year with a franchise system. The stores should become a role model for other countries. But the difficult economic conditions in China and the restrictions resulting from the corona pandemic have caused disappointment.

So far, Emma has only five stores in China. “Our franchise partners have a hard time running the business profitably because many people don’t go out for fear of infection and therefore there are no customers,” explains co-founder Müller. “But if you want to be a global brand, you have to be in China,” he says, confirming the company’s ambitions.

Although China is not yet a model for success, Emma has opened her first store in Europe, in the Mall of the Netherlands near The Hague. But expansion here must be cautious. “This year we will selectively open one or two more stores in Europe, as we are still developing the strategy,” says Müller. The store in the Netherlands is a first proof of this.

>> Read also: the electronic commerce could grow faster due to inflation

Like other mattress retailers, Emma grants customers the right to return a mattress purchased online within 100 days. In order not to have to dispose of these returned mattresses, the company has now turned it into a new business: Under the name “Second Life” it now offers reprocessed mattresses at lower prices.

This not only opens up a new clientele of price-conscious customers, but also helps in efforts to reduce greenhouse gas emissions. That’s not so easy in the industry, Müller admits. “We have to push our suppliers to use a higher proportion of recycled content.” The goal is to reduce CO2 emissions per product by ten percent each year. “And last year we more than met that goal,” says Müller.

More: Founders need to know these investor tips for the next round of funding

NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA
NBA

By yjawq

Leave a Reply

Your email address will not be published. Required fields are marked *