Temple & Webster just hit one million active customers and sales were up 23% for the half.
👉 Background: Temple & Webster is the online furniture retailer that sells things like couch dupes, wall art and rugs. Its first three years on the ASX were quite uneventful, but with a change in strategy and a new CEO, Temple & Webster started to turn the ship around.
👉 What happened: From 2017 to 2021, Temple & Webster's revenue grew nearly 6x to over $326 million. And since then, Temple & Webster have continued to go from strength to strength. It just hit one million active customers and sales were up 23% for the half.
👉 What else: Apparently, the main reason for Temple & Webster's success are the millennials looking for entry-level furniture to furnish their new places.
💡When the market is big enough, it's better to dive deep than dive wide. There are enough millennials in Australia to build a whole business around—we're talking 5.4 million at last count in 2021's Census.
💡In Temple & Webster's case, they focused on penetrating a market of millennial. They are targeting millennials who are going through major life transitions—think buying a house, starting a family, and going slightly more upmarket than Kmart.
💡Penetrating a specific market is common for businesses, especially when the size of that market is big. For instance, Shein has targeted trend-driven, social-media savvy, but budget-conscious shoppers mainly through TikTok and Instagram.
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