The two friends' product in Hong Kong (China) uses new compression technology to fit a mattress into a small box, making it easy to transport in elevators and apartment buildings.
Alex Ma and Jason Da Rosa were teenage friends. Alex attended university in the UK, while Jason went to the US. Both had successful banking careers. Alex Ma once headed a unit at HSBC, while Da Rosa was an investment banker on Wall Street. Both wanted to return home at the same time. That was when they reconnected and wanted to do something together.
“My parents are here, and I grew up here, so I have always wanted to return to Hong Kong (China),” said Da Rosa, who returned to the city of more than 7 million people with his American wife.
“When we began looking for opportunities in the furniture sector, mattresses were one product that stood out. I was shocked by how expensive they were,” Da Rosa said.
Retail premises in Hong Kong, China, have very high rents. Sellers therefore have to raise mattress prices to cover this expense. Although rents have recently fallen, they still reach USD 2 million a year for a small 63m2 shop.
Alex Ma noticed the same situation while buying furniture for his apartment. The two friends began to think this was their opportunity. In 2016, they prepared to launch their first business venture. A year later, the two co-founders brought the Skyler mattress to market.
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The two founders Alex Ma and Jason Da Rosa. |
The project resembles Casper, Leesa, Purple, and several other brands that have emerged and risen in the US, specializing in mattress retail while operating like technology startups. Casper is perhaps the largest of these, with a planned IPO valuation of up to USD 750 million.
“We wanted to create something of our own and have control over everything. Of course, it is a challenge when we have to manage ourselves,” Alex Ma said.
Like some other mattress startups, Skyler uses new compression technologies to fit its mattresses into small boxes. During design, it also makes adjustments to suit Asia’s humid climate.
Alongside expensive mattresses, the pair saw another opportunity to develop their business. “Most people in Hong Kong (China) live in apartment buildings, and the elevators are usually very small. This means that if you want to buy a large mattress, most shops cannot deliver it because it will not fit in the elevator,” Da Rosa explained.
One option is for customers to buy two single mattresses and put them together, but the seam in the middle is a problem. If they must buy a large mattress, they have to pay a substantial fee for carrying it upstairs. Delivery to the 30th floor will cost a lot.
Skyler is currently still focused on the Hong Kong market in China. The company’s next step is to launch pillow products. It will then consider expanding overseas. Da Rosa did not disclose revenue figures but revealed that they were profitable in their very first month, February this year, and doubled their growth in the following months.
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A Skyler product display location. |
Although shop rents prompted the two friends to sell online, they also found some ways to bring their products offline.
Skyler has a showroom in a busy Hong Kong, China location where people can see and try mattresses directly. The two co-founders also spend considerable time promoting products at street stalls, showing customers how a large mattress fits into a small box.
The two friends were not simply building a business with a global vision; they had achieved initial success in reaching online shoppers, creating a basis for expansion into larger markets.
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