Why Is Gravity Blanket’s Business Declining?

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Back in 2017 Gravity Blanket (A weighted Blanket For Sleep, Stress, And Anxiety) launched on Kickstarter with a campaign to raise $21,500. In the end, their Kickstarter campaign raised over $4.7M.

In early 2021 Gravity sold to Win Brands Group (a holding company for consumer brands) for an undisclosed amount. From what I can tell, the brand was acquired for sub $50M but most likely was in the range of $7m-$15m.

In 2020, Gravity generated $22M in revenue. And in 2019 they generated about $18.5M in revenue. About 50% of Gravity’s business is through their website and the other 50% is through wholesale distribution.

So How Does Gravity Blankets Ecommerce Business Compare in 2019 to Now?

In July of 2019, Gravity was receiving about 120 orders per day or 3,500 orders per month. With an estimated average order value of $200, this gives Gravity about $700,000 in average monthly sales. Factor in some increased holiday months, Gravity Blanket’s website was generating about $9m-$10M of sales in 2019.

In July of 2021, they are now receiving 47 orders per day or about 1,500 orders per month. Their average order value has dropped to about $180, giving them about $270,000 in average monthly sales. Again factor in some increased holiday months, Gravity Blanket’s website in 2021 looks to be generating about $3.5M-$4M in sales.

More than a 50% Drop from 2019 to 2021.

So What Is Going On?

Why has the revenue of Gravity’s ecommerce website dropped so much? Part of the press release of Gravity selling to Win Brands, it was called out that Win would be able to help Gravity expand their Amazon and wholesale business.

So my first thought is maybe some of the revenue Gravity was generating from their site has moved over to Amazon. This is possible but when reviewing their Amazon listings, I see that the product is shipped from Gravity Blanket (meaning not directly from Amazon through FBA). From my experience, they would likely funnel the non-fba orders through the backend of their ecommerce site (which is Shopify). This means that likely their Amazon orders are already represented in the numbers I am pulling. 

I do not believe that their ecommerce sales have moved over to sales through Amazon.

What about Wholesale? Are their wholesale accounts taking sales they would be seeing from their site? I think this is unlikely. On Google Shopping, Gravity’s website ranks the best for their product, and there are only a few other retailers marketing the Gravity Blanket online. 

In 2019, Gravity was selling to wholesalers and their website still generated $9M-$10M in sales. There are no new wholesale partnerships in 2021 that would lead me to believe that wholesale business is not cannibalizing their ecommerce business. 

Hype Fades and Competition Increases

Back in 2017 – 2019 weighted blankets were extremely popular and there was not that much competition yet. In July 2019, the term “Weighted Blanket” was searched about 246,000 times. That same term in July 2021 was search 135,000 times. The term “Gravity Blanket” in July 2019 received 40,500 searches and in July 2021 that term was search just 8,100 times.

As you can see the interest in weighted blankets has died down in the past couple of years. And during that time competition has only increased. Do a simple search on Amazon for “Weighted Blankets” and you will see hundreds of results from many different brands. And the average price point is around $50-$60.

Gravity sells its product for $180-$200. It’s no surprise that Gravity’s sales have dropped so much when the macro interest in the product has died down, and people have many many many other options at a quarter of their price point to try a weighted blanket.

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