Ombori Talks About Changing Consumer Values
The world is changing, and we’re seeing many industries become outdated. The latest example of this is Ombori. If you haven’t heard about it before, they are a company that specializes in providing high-quality home goods to the public (think: bedding and bath). They recently released a blog post that talks about how consumer values have shifted to more simple items like clothing over the last few years, which has caused their business to fall short of revenue expectations by $2 million. We’ll take a look at what happened with them and how it could affect your industry as well!
Ombori is an example of how consumers are putting more focus on high-quality items over low-cost ones. While Ombori specializes in high-quality items, their main competitor (namely Huckins) still has home goods with comparable prices to theirs to improve consumer values; however, Huckins items are not as high-quality. This means consumers still have the option to purchase lower-quality items for a cheaper price, which is what they’ve been doing. Ombori attributes this decision to lower-income consumers and uncertain economic times; both of these factors make it so that people don’t want to spend their money on something that’s not worth it.
Ombori’s projected revenue is $20 million, but for this year they only expect $18 million for enhancing consumer values. Now that this is out in the open, Ombori has 2 options: either lower prices to keep up with their competition or increase the quality of their products. It’s an interesting situation because both options have their pros and cons.
Right now, the company is in talks with outside investors to help diversify its portfolio of items (which could include clothing). They have stated that they won’t be able to make any moves until next year; at this time, they’ll either enter into a contract with another company or create one themselves to enhance consumer values.
Learn more about Ombori: https://ombori.com/