DreamCloud Holding, the company that houses mattress and rug brands Nectar, DreamCloud and Wovenly, on Tuesday announced it will be rebranding to "Resident," according to a company press release.
In a bid to transform into a home furnishings company, the company also announced the launch of its first furniture line, Bundle by Resident. The line's assortment so far includes a customizable sofa and a portable beanbag, starting at $1,195 and $600, respectively.
Resident also announced an acceleration plan that includes new collections and an increased brick-and-mortar presence for its Nectar brand. The company expanded its retail partnerships to nearly 1,000 stores, including American Furniture Warehouse, Mathis Brothers and Nebraska Furniture Mart, and plans on introducing its brands to the U.K.
The newly established company, Resident, is vying for a spot in consumers' lives outside of the bedroom. For a space that has become increasingly crowded, expanding beyond mattresses could be a good bet.
"The mattress is the gateway into the home, but we don't want our business to begin and end in the bedroom," Ran Reske, Resident co-founder, said in a statement.
The mattress category has become an increasingly saturated one. And brands have taken note. When Mattress Firm filed for Chapter 11 bankruptcy protection last October and announced 700 store closures, many pointed to the wave of direct-to-consumer brands that have launched in recent years as the cause. And in the wake of the filing more brands scrambled to scoop up the market share that was left behind.
Casper, a brand some would argue paved the way for mattress disruptors, has since added bed frames, bedding, dog beds and a smart nightlight to its repertoire. Nest Bedding in January also announced plans to move beyond its mattress beginnings with the rollout of nearly a dozen new products, including a sleep apparel line.
This isn't Nectar's first foray outside of mattresses. In December, the company launched Wovenly, a direct-to-consumer brand selling rugs. For startups in a space selling products that aren't frequently replaced, expanding horizontally may serve as a means for survival and future success.
"After driving Nectar to unprecedented sales last year, our proven business model is poised to dominate within the broader home furnishings category," Craig Schmeizer, Resident co-founder, said in a statement, saying Resident's multi-brand approach separates them from other businesses. "This DTC 'Brand-Building Model,' which we will replicate across Resident, lets us cater to specific consumer needs better than our competitors."