The fastest grower in Internet Retailer’s Top 1000 will move into new categories that shoppers research before buying.

Mattress retailer Nectar Sleep is expanding its assortment to sell other considered purchases, with newly launched furniture brand Bundle.

Nectar Sleep already had a rug brand, called Wovenly. To house its growing  suite of brands, Nectar launched a parent company, called Resident.

Direct-to-consumer brand Nectar is No. 211 in the Internet Retailer 2019 Top 1000 and grew online sales 525% in 2018 over last year, faster than any other Top 1000 retailer.

The new Bundle brand launched with a couch and oversized bean bag chair, both with a 60-day trial period and free shipping. The brand will compete with other digitally native, vertically integrated furniture brands, including Burrow and Joybird, owned by La-Z-Boy Inc. (No. 508).

The strategies Nectar used to grow its mattress business so quickly—reaching a quarter billion dollars in online sales in fewer than three years in business—will help Resident grow furniture sales along a similar trajectory, says co-founder Craig Schmeizer.

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Nectar’s growth came from precisely targeting consumers prepared to buy a mattress, using methods and tools developed in-house. The process includes using marketing tools on social  media sites like Facebook’s “Likely to Move” or “Newly Engaged” targeting buckets, focusing ads on its differentiating factors, such as its lengthy trial period, and getting rated on affiliate sites. But Nectar also looks at where its site visitors originate and how they use the site to further customize ads to those shoppers.

And it’s not just the furniture category Resident will go after—Schmeizer says there are plenty more product categories Resident can tackle with the Nectar playbook.

“We’re selecting categories where our tools and approach are distinctively leverageable,” he says. “Small items like spatulas aren’t top of mind right now. That doesn’t mean we don’t want to be in the kitchen. When we do go in there, it will be for something with a longer purchase path.”

These considered purchases pair neatly with Resident’s marketing process, which looks for consumers already showing signs of shopping within the category. But it’s not just marketing that Resident will leverage in growing future brands.

“Resident lets us do something we’ve never been able to do before: Take the consumer trust that we’ve built and convert it into trust of another brand,” Schmeizer says. “In many cases now, we don’t need to acquire new customer.”

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Resident will market brands independently and operate separate websites. Although, Schmeizer plans to use a shopper’s previous purchases at one Resident brand to market and suggest items at its other Resident brands, and will associate each purchase with the parent brand. Keeping the brands separate but associated allows each brand to differentiate itself, such as on price or style, while still accruing brand equity to Resident, Schmeizer says.

“Resident as a master brand allows us to be a house of brands,” Schmeizer says.

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