'Casper' Entered the New York Stock Exchange After 6 Years of Startup with Just One Mattress

[Hidden Business Story] A Mattress Brand Created by 5 Sleep-Deprived Office Workers
Achieving 400 Billion KRW in Sales Within 3 Years by Excelling in Quality, Price, and Service
Expanding Product Line to Sleep Items Like Pillows, Comforters, and Sleep Lights

[Source - Casper]

[Asia Economy Reporter Shinwon Yoon] In February of this year, a company less than six years old since its founding entered the New York stock market in the United States. The mattress brand 'Casper,' established in 2014, is the protagonist. In an industry that emphasizes history and tradition, this startup is bringing a fresh breeze.

Casper was founded in 2014 by Philip Krim, Neil Parikh, Luke Sherwin, Jeff Chapin, and Gabriel Flateman, who had worked at different mattress companies. They met in a co-working space and reportedly often said they were "tired" due to daily sleep deprivation. They then began to take an interest in mattresses and recruited Jeff Chapin, who had researched and developed mattresses for 10 years at IDEO. They raised $1.85 million (about 2.25 billion KRW) from Lerer Ventures, Norwest Venture Partners, and others to create 'Casper.'

As soon as Casper launched its mattresses on the market, it attracted attention. It achieved $1 million (about 120 million KRW) in sales within 28 days of mattress sales. That year, it received an additional $13.1 million (about 1.6 billion KRW) investment from notable figures such as Hollywood actor Ashton Kutcher and rapper Nas, who are famous for investing in successful startups like Uber and Airbnb. Subsequently, Hollywood stars like Tobey Maguire and Leonardo DiCaprio also became investors in Casper.

However, it is not easy for a relatively young company like Casper to survive in the mattress industry. The world's top three luxury mattress brands?Sweden's Hastens (1852), the UK's Hypnos (1904), and Sweden's Duxiana (1926)?as well as popular American brands such as Serta (1931), Simmons (1870), and Sealy (1881), all have an average history of 100 years. This is because a long history is perceived as a symbol of excellent technology. Due to the closed nature of the industry, only Chinese and Mexican mattresses competing on low prices have survived. But Casper boldly challenged the industry solely with product quality and service.

[Source - Casper]

In this red ocean industry, where a few companies already monopolize the market, Casper focused first on product quality. It took Casper nine months to develop its initial mattress. At the same time, Casper sought ways to produce good products while lowering prices. Because mattresses are bulky, typical mattress brands incur high costs during distribution, but Casper focused on mattress resilience to make it possible to roll up the mattress for shipping. It also added the advantage of delivery within five days across the United States.

Currently, Casper mattresses range from $356 for the basic line to around $1,300 for the premium line, which is relatively affordable compared to other mattress brands.

Casper's sales method is also unconventional. It offers a '100 Night Trial.' Customers who purchase a mattress can use it for 100 days and get a refund if they are not satisfied. There is no return shipping cost either. Regarding this, founder Philip Krim explained, "Mattresses are used for about 10 years after purchase, but customers decide after lying down for only 3 to 5 minutes in a store. The 100 Night Trial allows customers to check whether the product suits their body before buying." Mattresses returned through this program are donated to neighbors in need, contributing to social responsibility efforts.

[Source - Casper]

Having secured quality, price, and service, Casper has firmly established itself in the mattress market. As of 2018, sales reached $358 million (about 435.7 billion KRW), a 42% increase from the previous year. Since its founding, it has shown an annual sales growth rate of about 40%. Last year, sales already exceeded $310 million (about 377.2 billion KRW) by the third quarter.

Recently, Casper has begun to focus on 'sleep' itself. It aims to expand its product line to include pillows, blankets, and sleep-related items to create a 'sleep' category. In fact, Casper's sleep products include white noise machines, sleep apnea treatment devices, sleep aids, and alarm clocks.

This content was produced with the assistance of AI translation services.