Deliver a new DTC home textiles company with a brand identity that stands out, allowing them to effectively compete in the category.
A Case Study
A LITTLE BACKGROUND
Consumers aged 25 - 44, equally male and female, with an average HHI of $100k are the prime target for DTC luxury home goods- making up 64% of the market. Above age 45, consumers redirect their disposable income towards experiences, as their homes are likely fully decorated and furnished with quality, stylish goods that they don’t feel the need to replace. Until then, consumer behaviors surronding home goods and decor are quite the opposite. They are heavily influenced to buy based on Pinterest boards and Instagram accounts, but specifically seek out items that make them feel unique. These consumers don’t want a bedroom-in-a-box. You’ll see this consumer happily thirfting a retro lamp from a bargain bin, but researching what towels have the best thread count. They shop for things that “spark joy” and provide a pleasurable creative outlet of turning a house into a home. They also don’t see linens as a sector of home decor that ever sparks joy. They buy sheets when they wear out the elastic on the pair they bought for their college apartment.
Direct-to-Consumer home textiles brands have surged in popularity over the past five years because they cut out the middleman to provide consumers with high-quality products at a significantly lower price point than traditional retailers. At first glance, the direct-to-consumer home textiles space has become saturated over the past five years. - Bedding contributes a third of overall sleep industry sales, a $432 Billion dollar category. Roughly 25% of sales were DTC in 2020, with three brands dominating their existing competition- Brooklinen, Parachute, and Boll&Branch.
There’s almost zero differentiation between the products offered by the three companies dominating this industry. Consumers patronize these brands partially because they’re convenient and offer a good value, but primarily because the existing competitive landscape is a Sea of Sameness. Consumers don’t know there could be another way to shop for home linens that does spark joy, so they haven’t demanded it- yet.
Buying frequency is lower for home textiles than other home goods. Consumers see bedding, bath linens, etc., as a chore to shop for. The products currently offered might be soft, but they’re muted, solid neutra shades without any personality or whimsy. Meanwhile, home decor sales are skyrocketing. Consumers see decor outside of textiles as a fun indulgence that can change the personality, mood, or purpose of space in their home. Home Decor outside of bedding is also extremely seasonal- there’s always another buying occasion around the corner.
Positioning the new brand as a fun, whimsical home decor brand, rather than boring, beige, household linens.
Tagline: Your dreams aren’t bland, so why should your bedroom be?
At Toucan! We are playful. We are eclectic. And we offer products that pop - unlike any other bedding brand on the market. The idealists at Toucan! want to liberate bedrooms from their bland beige and infuse them with the exuberance consumers display in every other aspect of their home.
Who is the Toucan shopper? They’re part of the audience drowning in the Sea of Samesness, but are creative individualists that will gladly switch to a brand that teaches them that home textiles really CAN be more- even home decor. Insert slide 22. Also maybe just mention they shop at our “brand crushes” (my professor loves these) which are slides 23-25