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Innovating the quality of sleep through technology and science-infused fabrics.
SOMÉ is a Calgary based, female-founded tech luxury sleep brand clear pathway to $100M revenue, poised for global expansion. This is currently the only global luxury wellness brand devoted to innovating the quality of sleep through technology.
THE PROBLEM: SLEEP
The Centers for Disease Control and Prevention (CDC) declares sleep disorders a public health epidemic. According to CDC research, 50 million people report trouble concentrating during the day, and another 24 million have stated that lack of sleep interferes with driving. Yet, another 18 million have reported interference with their job performance. (1) One significant factor in sleeplessness is the inability to thermoregulate resulting in sweating and sleeping hot through the night; 37 million adults in North America sleep hot and sweat at night. There is a global captive audience yearning for science-based solutions to improve sleep and optimize overall health and wellness. SOMÉ has tackled this pervasive issue through proprietary technology, Xirotex. This problem-solving technology has an addressable market size globally of $17.2B, with 80% of all women suffering through night sweats for an average span of 7 years, usually after 40. One in 4 Americans, or 83 million, is a woman over 40 and historically, they feel ignored in the marketplace; SOMÉ was founded to address this issue. (2)
SOMÉ’s women’s sleepwear line, Lusomé, is a luxury brand that tackles the pervasive problem of night sweats through technology and innovation. Drawing on vast experience in sourcing, along with an exhaustive 2-year R&D collaboration with a premier textile mill, Lusomé created the best-performing moisture management fabric. The resulting technology, Xirotex (Xirotex Moisture Management) utilizes moisture-moving technology that accelerates evaporation for instant relief, drawing perspiration and bacteria away from the skin surface through the fibre capillary structure and dual layer fabric construction, rapidly eliminating moisture, odour and bacteria from the skin's surface. Unlike other technologies that use man-made fibres, bamboo, or other chemical treatment processes for ‘wicking’, Xirotex does not hold the bacteria from sweat in the fibres, and therefore no unpleasant odour. In 2023 due to consumer demand Xirotex Moisture Management will be adding men’s sleepwear, along with a focus on licensing the technology to activewear, luxury golf brands and medical garments.
Xirotex Cool, launching for the 2022 Christmas season in Canada and the US, is the bedding line that offers dynamic temperature regulation with dual cooling through cool touch and PCM technology to pull away and store heat energy before the body starts to sweat. Taking advantage of the North American trend towards increasing consumer awareness concerning good night’s sleep and innovative bedding materials, this is a big opportunity with a large serviceable addressable market, “SAM”. With just a 5% share of the 41% (3) of US adults who sleep hot buying one set of sheets per year, based on average unit retail “AUR” of $200USD, it would equate to a $1.01B USD revenue opportunity. In Canada, the company has received positive feedback, partnering with Sleep Country and will be launching in 13 brick and mortar mall-based stores and will be featured through Sleep Country’s online store and through SOMÉ’s direct-to-consumer website.
Finally, Xirotex Soft is a collagen-infused unisex luxury sleep mask that will launch in 2023. Collagen-infused fibres deliver hydration to the skin that, with lab tests confirmation, provides moisturizing and anti-aging benefits. In 2024, Xirotex Soft is set to expand into the intimate’s line.
*The above graphic illustration demonstrates the power of a comprehensive intellectual property experience (IPX) fusing the luxury lifestyle brand of SOMÉ with powerful and proven technology, Xirotex. SOMÉ will be the destination for coveted, innovative products and be viewed as a thought leader in the sleep ecosystem through the evidence-based and science-informed resources
SCIENCE BEHIND XIROTEX TECHNOLOGY
Building on the intellectual property experience of Xirotex, the company engaged the services of Dr. Rachel McQueen & Ms. Jennifer Beaudette at The Department of Human Ecology at the University of Alberta to conduct a study reviewing Lusomé Xirotex fabrics compared to the data from other sleepwear brands fabrics in terms of cooling and moisture management properties and benefits to the consumer.
Using the standard measurement tool, the moisture management tester (MMT), to characterize the liquid moisture transport behaviour of fabrics Dr. McQueen assigned grades between 1-5 based on their performance.
The results below illustrate the performance of Xirotex moisture management, proving that the technology does perform better than any of the category’s peers. The results show how the technology solves the persistent problem, leading to improved sleep. In the full report here Dr. McQueen and Ms. Beaudette review the claims of 26 brands of sleepwear, bedding and other apparel as posted on each brand’s website and in media
Lusomé powered by Xirotex is the fastest and most effective technology at eliminating moisture, moisture vapour and bacteria from the skin's surface. Of equal importance is the company’s desire to educate consumers and media around substantiated benefits and hold the industry more accountable to be transparent and accurate in their marketing communications.
*for illustrative purposes only
REVENUE AND INTERNATIONAL EXPANSION POTENTIAL
After successfully fighting off a takeover attempt in late 2021, the company went into research mode to envision a global health tech luxury sleep brand, a complete Intellectual Property Experience (IPX), harnessing the power of Xirotex at the centre. With a focus on growth through a dedicated direct-to-consumer website, partnerships such as Sleep Country in Canada, a QVC distribution agreement in the US and a broad wholesale distribution strategy, the revenue opportunity becomes exponential. Recession fears in 2023, while understandable, are tempered through the focus on the Luxury brand and customer experience. Market share metrics are extremely low to drive revenue well above forecasts. Expansion is driven by innovation, consumer trends and continued focus on media outlets. Media accolades include Good Housekeeping’s best sleepwear brand 3 years in a row, Oprah’s favourite things, the Today Show’s most innovative sleep solutions, Glamour’s best nightwear for managing night sweats, Prevention’s 2019 healthy sleep award winner, Health.com’s 2022 sleep award winner, along with publications in the Globe and Mail, Toronto Star and many more.
*Based off 4Front internal estimates, contingent on $2M equity infusion in Q1 2023. Positive Net Income by 2023; $96M in revenue and $6.4M in net earnings in 2026
Expansion into European and Asian markets is expected in 2025 as revenues are projected to be above $25M. Positive operating cash flow (EBITDA) is estimated to in 2023 on an annual basis from North American operations only.
In summary, while the question of the consumer in the face of a potential recession may be a headwind for the industry, SOMÉ is well insulated through its luxury market position, health focus, product differentiation, and technology driven products. Only a very small market share is required to get to profitability in North America. Execution will be vital, and with a seasoned industry veteran CEO who took a large male-focused retailer women’s business from virtually no revenue in women’s apparel to the number 5 women’s retailer in Canada and $250 million in revenue in less than 5 years; we feel the company is well poisoned to outperform peers and the broader market in the near and long term. For more information on the founder and CEO, Lara Smith click here, for more information on the company and its technology, click here.
If you would like to learn more about SOMÉ or any of 4Front Advisory’s clients, please reach out to us directly for more information at email@example.com.