In the crowded world of e-commerce startups, it's rare to find a company that can make you laugh while also making you feel good about your purchase. Enter Sheets & Giggles, the irreverent bedding brand that's turned eucalyptus sheets and clever wordplay into a multi-million dollar business. Founded in 2018 by Colin McIntosh, this direct-to-consumer company has quickly become a case study in how to build a successful, sustainable brand in the digital age.
The Birth of a Punny Idea
When Colin McIntosh found himself unexpectedly unemployed in 2017, he didn't just see a setback – he saw an opportunity. Rather than jumping straight into product development, McIntosh took a methodical approach to building his business model:
"I'm going to build a business model that's going to work for me that I'm going to think I'm going to be best at the world. And then I'm going to build and adapt the product to fit into that model."
This product-agnostic approach led him to evaluate potential markets based on several key criteria:
- Physical product with a low complexity supply chain
- Massive commodity market (bedding is a $12+ billion industry)
- Fragmented marketplace with no clear leader
- Little brand differentiation or loyalty
- Traditionally sold through physical retail, ripe for direct-to-consumer disruption
After careful consideration, bedding emerged as the perfect fit. And with the domain name sheetsgiggles.com already in his possession, the foundation for a cheeky, disruptive brand was laid.
Finding a Niche in Eucalyptus
While initially considering bamboo sheets, McIntosh's product research led him to discover eucalyptus lyocell – a fabric that would become the cornerstone of Sheets & Giggles' success. This innovative material allowed the company to differentiate itself in three key ways:
- Superior Comfort: Eucalyptus lyocell is softer and more breathable than traditional cotton.
- Sustainability: The fabric uses 96% less water than cotton and requires no pesticides.
- Competitive Pricing: Sheets & Giggles could offer eucalyptus sheets at a significantly lower price point than competitors.
By focusing on this niche material, Sheets & Giggles found a way to stand out in a crowded market while delivering tangible value to customers.
Crowdfunding: Validating Demand and Building Buzz
Rather than seeking traditional venture capital, McIntosh opted to launch Sheets & Giggles through crowdfunding on Indiegogo. This approach allowed the company to validate demand and pre-sell inventory before investing heavily in manufacturing.
The crowdfunding strategy was meticulously planned over 12 weeks:
- Goal: Raise $100,000 (with an internal goal of $50,000)
- Target: 300 customers in the first 3 days
- Pre-launch email list goal: 10,000 subscribers
- Tactics:
- Created 12 different landing pages for testing
- Ran over 50 Facebook ad variants
- Optimized extensively for mobile users
- Achieved a 46% email capture rate (4-5 times the industry average)
The preparation paid off handsomely. Sheets & Giggles ultimately raised $284,000 from their crowdfunding campaign – nearly triple their goal. This success provided not only the necessary capital but also crucial proof of concept to move forward confidently with manufacturing and growth plans.
The Direct-to-Consumer Advantage
Like many modern bedding brands, Sheets & Giggles embraced a direct-to-consumer (DTC) model, selling exclusively through their website. This approach offers several key advantages:
- More competitive pricing by eliminating retail markups
- Complete control over the customer experience
- Direct relationships with customers, facilitating feedback and loyalty
- Ability to quickly iterate and optimize based on data
- Higher margins allowing for reinvestment in growth
While some DTC brands eventually expand into retail partnerships, Sheets & Giggles has remained focused on their e-commerce model. This strategy has allowed them to maintain higher profit margins and grow efficiently without the complexities of managing retail relationships.
Branding that Makes You Giggle
From the punny name to their adorable eucalyptus mascot, Sheets & Giggles leans heavily into humor and personality to stand out in a traditionally staid category. As McIntosh explains:
"I think a company's brand has to be the founder's personality. And just to zig when everybody else zags in this really boring old space."
This irreverent brand voice permeates every aspect of their marketing:
- Tagline: "Not your grandma's sheets (unless your grandma is awesome)"
- Product features like "Koala tested, koala approved"
- April Fool's Day prank products such as "meat sheets"
- A eucalyptus mascot named Eucy
The memorable branding helps create word-of-mouth buzz and makes the brand stick in consumers' minds long after they've scrolled past an ad.
Content Marketing: Helping Before Selling
Beyond traditional advertising, Sheets & Giggles has found significant success with content marketing – particularly on Reddit. Founder Colin McIntosh regularly contributes helpful advice on topics like resume writing, seemingly unrelated to bedding.
His resume advice post has been viewed over 1 million times and drives substantial traffic to the Sheets & Giggles site. While not directly promotional, it builds goodwill and brand awareness. McIntosh explains the strategy:
"We really just need brand impressions and we need people to see us on Reddit to see us on Jiffy, to see us on Facebook, to see us on their podcasts, and over time, the next time they buy bedding, they might think of Sheets & Giggles."
This approach of "helping people before asking for their money" has created strong brand affinity. Many customers report purchasing sheets specifically to support the company after McIntosh's resume advice helped them land a job.
Customer Service as a Marketing Powerhouse
Sheets & Giggles views customer service not just as a support function, but as a key part of their marketing strategy. The company is fanatical about responding quickly to every customer comment, question, and review – often within minutes.
McIntosh emphasizes the importance of this engagement:
"If somebody has taken the time on their Facebook feed to stop, click, comment on a freaking ad, which we all hate ads, and ask a question or say something, the brand needs to engage with that person. They need to respond. And frankly, they need to respond within 20 minutes. Otherwise, you lose them."
This level of engagement builds trust and loyalty while also increasing social proof through high comment counts on ads. In an industry not typically known for stellar customer service, Sheets & Giggles has made it a key differentiator.
Sustainability at the Core
Sustainability isn't just a buzzword for Sheets & Giggles – it's fundamental to their brand and business model. Their eucalyptus lyocell fabric uses 96% less water than cotton and requires no pesticides or insecticides. But the company doesn't stop there:
- They plant a tree for every order placed
- Regularly donate sheets to homeless shelters
- Use recycled and recyclable packaging materials
- Offer carbon-neutral shipping options
This comprehensive commitment to sustainability resonates strongly with their millennial target audience and provides another point of differentiation from traditional bedding brands.
Data-Driven Decision Making
As a direct-to-consumer e-commerce brand, Sheets & Giggles has access to a wealth of customer data. They leverage this information to continuously optimize their product, marketing, and operations:
- A/B testing landing pages and ad creative
- Surveying customers on color and size preferences
- Analyzing purchasing patterns to inform inventory decisions
- Retargeting ads to past website visitors
- Personalizing email marketing campaigns
This data-driven approach allows them to iterate quickly and make informed decisions about inventory management, product development, and marketing spend.
Expanding the Product Universe
While sheets remain their core product, Sheets & Giggles has begun expanding into other bedding categories:
- Duvet covers
- Pillowcases
- Eucalyptus throw blankets (coming soon)
- Eucalyptus comforters (in development)
- Eucalyptus towels (planned for future release)
This product line expansion serves multiple purposes:
- It increases average order value and lifetime customer value by offering complementary products.
- It allows the company to become a one-stop shop for sustainable home textiles.
- It creates opportunities for upselling and cross-selling to existing customers.
The Profitable Path to Growth
Unlike many venture-backed startups focused solely on rapid growth, Sheets & Giggles has prioritized profitability from day one. McIntosh explains his philosophy:
"I wanted something where I'm going to be independent. I wanted something that was profitable first, scalable second. And a lot of startups go scalable first, and then profitable second. And that's not what I wanted."
This focus on unit economics and positive cash flow has allowed Sheets & Giggles to grow sustainably without relying heavily on external funding. While they have taken on some outside investment, it's been on their own terms with investors who align with their vision and values.
Key Takeaways from the Sheets & Giggles Success Story
So what can aspiring e-commerce entrepreneurs learn from Sheets & Giggles' meteoric rise? Here are some key lessons:
- Start with a strong business model: Identify market opportunities first, then find a product to fit.
- Look for fragmented markets: Seek out industries ripe for direct-to-consumer disruption.
- Differentiate on multiple fronts: Stand out through product innovation, brand voice, and customer experience.
- Build an audience before launching: Use strategic pre-marketing to create buzz and validate demand.
- Leverage crowdfunding strategically: Use platforms like Indiegogo to pre-sell inventory and prove concept.
- Create memorable branding: Develop a unique voice that cuts through the noise in boring categories.
- Use content marketing to build trust: Provide value to potential customers before asking for a sale.
- Prioritize customer service: Treat every interaction as a marketing opportunity.
- Make sustainability central: Integrate eco-friendly practices throughout your business model.
- Embrace data-driven decision making: Use customer insights to continuously optimize and iterate.
The Future of Sheets & Giggles
As Sheets & Giggles continues to expand its product line and build brand awareness, the company is well-positioned for sustained growth. By staying true to their sustainable mission and irreverent brand voice, they've created more than just a bedding company – they've built a brand that customers genuinely connect with.
The company's success demonstrates that even in seemingly mundane product categories, there's room for innovation and disruption. By combining a sound business model with clever marketing and genuine customer focus, Sheets & Giggles has quickly become a major player in the bedding industry.
For e-commerce entrepreneurs looking to shake up traditional markets, the Sheets & Giggles story provides an invaluable case study in building a modern, customer-centric brand from the ground up. It proves that with the right combination of smart strategy, bold execution, and a healthy dose of humor, it's possible to turn even the most ordinary products into extraordinary businesses.
As Colin McIntosh and his team continue to innovate and expand, one thing is certain: the bedding industry will never be the same. And that's no laughing matter – unless, of course, you're shopping at Sheets & Giggles.
