To maximize waking-life productivity, quality sleep is key and a significant number of start-ups launched to help you optimize. The dominant sleep economy brand is Casper, whose offering ranges from mattresses to melatonin supplements, weighted blankets to sleep-apnea therapy CPAP devices and pet beds—all without diluting their brand. The sleep economy is also notable for the degree to which their marketing relies on influencers. As NM pointed out, this is risky as ‘influencers could go rogue, they could get canceled, they could say something negative about their mattress or the product, and that this would be one of [Casper’s] biggest risks, which is funny, because I don't think that's their only risk. They don't make money. That's their biggest risk.’ Notably, the sleep economy in 2020 was growing at twice the pace of the waking economy.
Daniel Keller: [The mattress start-up] Casper, of course, is aware of this and they claim that they have 20% repeat customers within 12 months. And this is because, I guess, they sell other things that no one knows about like pillowcases or something like that. But they're trying to brand what they do as the sleep economy, which is hilarious. The sleep economy apparently is growing at like twice the pace of the waking economy.
Carly Busta: ...Netflix economy...
DK: Yeah. And so this is like the whole thing from going to sleep to staying asleep to waking up. They're talking about CPAP devices for snoring or melatonin supplements or pet beds. And it's just crazy to think that like, that's not going to dilute their brand at all, that's the only thing that they have going for them is a lot of marketing. One of the main risks, they said, they rely so much on influencers for their marketing, that their influencers could go rogue, they could do something, they could get canceled for something, they could say something negative about their mattress or the product, and that this would be one of their biggest risks. Which is funny and diluted, because I don't think that's their only risk. They don't make money! That's their biggest risk.
CB: Yeah, they're not profitable!
LIL INTERNET: They're not profitable?
DK: They’re burning money like crazy, of course, like any of these companies.
LI: There's the whole thing, just go for the monopoly.
DK: This is the model and it's again, another company making something that is not a new product, but trying to basically structure their company like it's a software company and getting valued like that.