Cariloha - Innovation of the Year

Company: Cariloha, Sandy, UT
Company Description: Cariloha is an international retail brand that's all about luxuriously soft bedding, clothing and bath goods made from eco-friendly bamboo, one of the most sustainable, renewable resources on the planet. Thanks to an ever-growing, rich supply of bamboo, Cariloha has a growing fleet of retail showrooms in 17 countries offering its proprietary bamboo apparel, bedding and bath goods.
Nomination Category: Company / Organization Categories
Nomination Sub Category: Innovation of the Year - Consumer Products Industries

Nomination Title: Cariloha Bamboo Bedding

Cariloha is an omni-channel, sustainability-driven company dedicated to making a difference through its ultra-comfortable, moisture-wicking, odor-resistant bedding madefromeco-friendly bamboo.

Cariloha and its bamboo bedding line experienced surging E-commerce CAGR of 98% in 2020 – despite the challenges from the COVID-19 pandemic. Cariloha remained focused on building the company profitably as a direct-to-consumer, e-commerce company using showrooms and wholesale accounts to build the brand and acquire customers.

Inspired by the essence and energy of the islands, Cariloha blends style and self-expression into every piece of bedding it makes. Special care is taken to drape customers in soft, comfortable, naturally breathable bamboo fabrics that leave them experiencing tranquil days in paradise time and time again.

Thanks to an ever-growing, rich supply of bamboo, Cariloha has a growing fleet of stores in 17 countries offering its proprietary bamboo bedding – all enjoying the quality, soft touch, and green 'footprint' of this renewable resource.

Our ever-expanding sleep and bedding portfolio, especially our Comfort Adjustable Bed Bases, fully integrate with Smart Home tech.

The moisture-wicking, odor-resistant, and temperature-regulating properties already naturally occurring within our proprietary bamboo fabrics and bamboo blends offer tremendous value for our customers.

Revenue Growth (CAGR / Compound Annual Growth Rate) and Gross Product Margins: With compounded annual growth rates of 40%, and gross product margins (online sales and corporate store sales) of ~74%, Cariloha has created a compelling business model and bamboo bedding offering that will continue to realize its tremendous potential.

Even with much of Cariloha’s retail presence on pause due to the pandemic, Cariloha experienced surging online sales growth of 98% CAGR in 2020, making up 60% of total annual revenue.

Sales Revenue Increases: Cariloha has enjoyed double-digit global sales growth over the past three years and is on track to add another $70 million in sales this year.

EBITDA: Finishing 2020 at more than $3.6 million and projecting to exceed $6 million in 2021. Growing very profitably in this retail space and environment is a remarkable achievement.

Cariloha Store Sales per Sq. Ft.: Cariloha’s average sales per square foot is $950, and Cariloha stores are, on average, 967 square feet.

Featured on The Kelly Clarkson Show and featured in hundreds of media outlets worldwide, including Forbes, Wall Street Journal, CNN, TODAY, NBC News, Inc., Glamour, GQ, USA Today, Rolling Stone, Good Morning America, The View, etc.

Over 1.5 million social media fans and subscribers.
Over 1.3 billion media, news and online impressions in 2020.

2020 – Recognized 10 times on the Inc. 5000 list of fastest-growing companies in America – Less than 4% of Inc. 5000 applicants ever make the list 10 consecutive years.

HOW WE DID IT:

CREATE OWN MARKETPLACE: Instead of creating another product that competes head to head on price, features and benefits in the marketplace, we created something unique – a blue ocean strategy – where you create your own niche in the marketplace.

TEST THE MARKET: We developed bedding lines that would capture the comfort and lifestyle of the islands combined with eco-conscious sustainability. At great financial risk, we merchandised and opened custom-built Cariloha stores in the Caribbean with a range of initial bedding options.

OVERCOME CHALLENGES: We confronted product issues head on by working directly with consumers in our stores to identify what they were looking for and what product adjustments and solutions we could provide them.

MAKE ADJUSTMENTS: Ongoing innovation led us to overhauling our entire product line to develop something that would stand out. After various product iterations toward our objective of eco-comfort, we created a bamboo bedding line that perfectly blended softness and comfort with earth-friendly sustainability and – presto – our bedding lines have exceeded sales projections ever since.

DO WHAT NO ONE ELSE HAS DONE: After much trial and error in making our first bamboo fabrics, we learned how to make bamboo socks. And, because we were able to successfully make bamboo socks, we were able to make bamboo fitness wear (similar to Lululemon and Athleta but better because it’s made from bamboo), leading to bamboo sheets, pillows, and mattresses (similar to Casper, Tuft & Needle, etc. but made with bamboo).

Please reference above the videos, URLs and PDF attachments that showcase Cariloha asthe next great success story in the ecohome goodsmarket with our comfortable, sustainable beddingthat allows customers to make a positive difference in the world.

WHY BAMBOO?

SOFT: Cariloha bamboo bedding is twice as soft as cotton! Kings, tailors . . . and your best friends, tout bamboo as the most comfortable material in the world. We guarantee you can feel the difference.

COOL: Cariloha bamboo bedding helps you stay cool. Literally and figuratively. Every fiber has a built-in thermostat, and Mother Nature turned bamboo’s way down. It’s 3 degrees cooler than cotton and wicks moisture away from your body.

CLEAN: Cariloha bamboo bedding naturally repels odors and allergens. From a bug’s point of view, bamboo looks more like a huge “No Vacancy” sign posted on an impenetrable wall. Cariloha fabrics, made of viscose from bamboo, don’t use harsh chemicals or pesticides and can help prevent skin irritations that can flare up with other chemically treated fabrics.

GREEN: Bamboo saves more trees, regenerates naturally and is one of the most eco-friendly resources on the planet. It keeps our soil stronger, our air cleaner and our environment healthier than anything else.

Cariloha is on the forefront of fabric and textile technologies that are more sustainable and environmentally conscious. We look at bamboo as something we can all live with. Everyone who uses Cariloha bamboo bedding is intrinsically giving back to a more eco-friendly world.