Purple

Purple Innovation, Inc. (NASDAQ: PRPL) operates as a comfort technology company, primarily known for its direct-to-consumer (DTC) mattress brand. The company's origins trace back to 1989 when brothers Terry and Tony Pearce, leveraging their respective expertise in materials science and aerospace engineering, began developing advanced cushioning technologies. Their early work focused on creating materials for wheelchairs and medical beds to alleviate pressure for users.

The pivotal moment for the company came with the invention of their proprietary Hyper-Elastic Polymer®, which led to the development of the GelFlex Grid technology in 2013. This material, a gel-like substance, is engineered to be simultaneously soft and supportive, addressing common consumer issues like pressure points and heat retention. The GelFlex Grid is designed with over 1,400 air channels to dissipate body heat and a column structure that cradles pressure points like hips and shoulders while supporting the rest of the body. This technology forms the core of Purple's product line.

Purple launched its first mattress directly to consumers online in 2016, a move that marked its formal entry into the competitive bedding market. The business model primarily revolves around DTC sales through its e-commerce website, which allows for direct customer engagement and margin control. This is complemented by an expanding wholesale channel, with partnerships with retailers like Mattress Firm, and a growing number of Purple's own physical retail stores. Revenue is generated from the sale of its products, which include a range of mattresses across different price points (Essential, Restore Hybrid, Rejuvenate Luxe), pillows, seat cushions, bed frames, and other bedding accessories. The company went public in 2017 through a merger with Global Partner Acquisition Corp. at a valuation of $1.1 billion.

The company's target market includes millennials and health-conscious consumers who prioritize sleep quality and are receptive to new product technologies. Purple has historically utilized viral marketing videos to build brand awareness, effectively communicating the unique properties of its grid technology. While continuing to invest in broad marketing, the firm is also using data analytics to reach more targeted audiences and is expanding into the premium mattress sector with higher-priced product tiers.

Keywords: comfort technology, GelFlex Grid, direct-to-consumer, mattress-in-a-box, sleep products, hyper-elastic polymer, pressure relief, wholesale distribution, e-commerce, bedding accessories