Natural selection

Hypnos may be fast approaching its 120th birthday, but its evolution continues apace, discovered Furniture News’ Paul Farley when he revisited the bedmaker’s Princes Risborough HQ to quiz group MD David Baldry on sustainability, setbacks and successes in a new, post-pandemic marketplace …

It’s all change at Hypnos. The builders are in, departments are transitioning from one end of the facility to the other, and the decorators are putting the final touches to the reimagined layout, which is at once more inviting and more practical than I remember it.

The hustle and bustle should be no surprise, as this bedmaker has never been afraid of change. Hypnos embarked on its latest chapter just six years ago, establishing a raft of new principals and partnerships, and truly embracing its mission to be one of the world’s most sustainable manufacturers. Now, it is all set to mark its 120th year, starting in celebratory fashion at September’s Bed Show, where new products – and new thinking – promise to be in good supply.

Of course, there have been challenges along the way. In the past year, the group lost its long-time contract with Premier Inn, prompting it to reappraise its manufacturing facility in Castle Donington. More recently, it chose to focus purely on its beds specialism and wind down the group’s delivery arm, Keen & Able.

Both developments attracted a good deal of speculation, which David is happy to address. “The Keen & Able business was a very good venture,” he explains, “but it was also reliant on partnerships with large customers that simply aren’t around anymore, or have contracted. It would’ve taken huge investment to develop, so we decided to focus on other areas of the business. We’re a bed manufacturer at heart, and that’s where our specialism lies.

“It’s true that Premier Inn represented a significant share of our contract turnover, so that loss felt like a real blow at the time – but I’m happy to report that we’ve refocused and covered the required ground, and the change has given our team a real chance to shine.

“It’s often overlooked that we continue working with big names like The Other House, the Royal Lancaster,

Soho House … we’re taking a more global approach, and the standard of hotel in which we’re helping to offer a great night’s sleep is a real point of pride. This is reflected in our great partnerships, as seen in our continuing Hotel Hypnos series.”

The exposure Hypnos’ hospitality business enjoys continues to support its retail endeavours, says David:

“We’re opening in Bloomingdale’s on New York’s Fifth Avenue right now,” he adds, by way of example. “The loss of all that high-volume work meant we had a unique opportunity to refocus on value over volume in the factory, and lean more towards handcrafting. We don’t use a lot of automation, and I think that helps keep the brand true to itself. I like to think of us as part of the Savile Row of the bed industry.”

Comparisons aside, it is clear that Hypnos is more than able to forge its own path. In recent months, the bedmaker has worked hard to bring the Responsible Wool Standard (RWS, a global initiative from the Textile Exchange), to the UK, adding further credibility to its Red Tractor-endorsed raw materials, while championing the wider issue of biodiversity. It has stepped up its partnership with the Eden Project, in a bid to bring completely new and sustainable plantbased materials to the sector (a version of the 100% sustainable Project Zero concept bed unveiled at last year’s Bed Show could soon be a reality, teases David). Elsewhere, exports have gained momentum, and brand awareness is up.

Despite the apparent setbacks, Hypnos’ latest financials reflect a positive year. “In a year of change, we’re in a good place,” says David. “In retail, we’re looking to be up on revenue by working closely with our partners, and our contract division is flying. The new business across both that’s already in the pipeline makes next year’s targets look eminently achievable.”

Since he joined the business last summer, David has overseen Hypnos’ reconnection with its customers, investing more time in understanding their wants and needs. “We’re doing this for them, and for the consumer,” he says. “We’ve plans to invest in partners where our brand, wellness experience and sustainability values align, for a great consumer experience.”

He has also overhauled the company’s IT systems, and implemented myriad internal process improvements. “We haven’t put in a new platform, opting instead to focus on quicker improvements to our existing system, where there’s been 82 major process changes – which has proved more effective and faster in enhancing our customer experience. Processes which previously took 29 minutes now take just 45 seconds, and we’ve moved almost all our systems to the cloud. We’ve also improved the flow of product and communication, by relocating teams in the office, making customer operations and order processing far more streamlined.”

David says the biggest win in the last year has been more cohesive working practices. As well as better communications between departments and sites, David holds regular ‘town hall’ meetings in the HQ’s refurbished canteen. “It’s an open forum that’s great for morale,” he says, “and there’s always chocolates and cake on standby!”

Being on the same page definitely results in stronger financials, he adds: “It’s all business fundamentals, supporting the team. We don’t want to be afraid to try something new, or to make mistakes –as long as we learn from them.”

Even he admits that, amid all these changes, it can be easy to lose track of how much the overall marketplace has shifted since the pandemic struck in 2020. Given its age, Hypnos has seen more ups and downs than most, but the current economic situation is relatively unique – and not without its opportunities.

“If we overlook the challenging years of Covid, and compare our performance to 2018/19, sales patterns are almost identical, and seasonality is back – as are those usual variables, like when Easter falls, and how hot the bank holiday weekend is.

“But the market’s dynamics have shifted. Mattresses that used to cost £800 are now £1000, everything’s gone up by +25%. There’s less disposable income, food and fuel have seen a huge increases (not forgetting those holiday flights), and people are spending more money on food if they aren’t going out.

“That said, the market is split. Those households earning below £35,000 – the UK average salary, as the media reminds us – are really feeling the squeeze, while those at the other end of the scale are in a different situation entirely, and the desire they have to turn their bedroom into a sanctuary is not going away.

“Another factor in our favour is that a generation of people that prioritise wellness and the planet is now coming of age. Time froze for three years, and when we looked up, we saw that there’d been a huge generational shift. For them, sustainability and wellness is a clear priority.”

It is rare to find a 120-year-old furniture company under original ownership through all its generations and evolutions, and it is fitting that a business with such a rich legacy would take the long view on issues as crucial as the environment. As David has said since ever his appointment, his job is to write the next chapter in the brand’s history – not the footnote.

“It’s all about the bigger picture – wellness for people and planet” he concludes. “At Hypnos, we’re always asking how we can do things better. We have to look at the new world, and create for it.” www.hypnosbeds.com