Koala | Sandy Morrow
Conversation with Sandy Morrow
Sandy Morrow is Head of Operations at Koala, Australia’s fastest-growing furniture company with a mission to become the smartest way to buy high-quality furniture online. They’ve removed the snazzy showrooms and focused on design, customer service and instant delivery.
“One of the first things we learned very early on in our journey of sustainability and in furniture items is making products that are going to last because the quickest way to create an issue with furniture is to make products that are going to be thrown out or put on the side of the curb, when it’s only 12 months old. ”
Since their inception Koala has been an innovative and disruptive company at its core. Right from the get go they set out to redefine the furniture buying experience, replace awful overpriced furniture and showrooms, with smart design, customer service and a completely customer centric approach.
Koala customers can order a bed or couch and get it in just 4-hours! They also receive a 120-night trial to ensure they are completely satisfied with the quality.
This approach in redefining both furniture purchasing and e-commerce has seen them grow rapidly across Australia over the last 3 years, and into international markets.
Not only do they have the exceptional service down to a fine art but they also have a social element which we just love. They have a unique partnership with WWF-Australia where they make a symbolic adoption of a koala with every mattress purchase, and a marine turtle with every couch (CUTE!). Plus they’re a member of B Corp and 1% for the Planet.
Mentioned in conversation…
What is chiefly disruptive to the Koala brand and how this has exploded their growth and consumer confidence
How Koala bring their mission to life of “We believe in reversing environmental trends and leaving Earth in better nick than we found it”
Their continued doubling-down on sustainability both across their supply chain and design
Future plans for Koala and how they’re building the team to support it
Follow Koala here:
Koala Website
Koala Instagram
Koala Facebook
Full Podcast Transcript - Sandy Morrow, Koala
Pru Chapman:
Welcome back to the One Wild Ride podcast. I'm your host, Pru Chapman. My guest today is Sandy Morrow, the head of operations at Koala, Australia's fastest growing furniture company with a mission to become the smartest way to buy high-quality furniture online. Since their inception, Koala have been an innovative and disruptive company at their core. Right from the get go, they set out to redefine the furniture buying experience replacing awful, overpriced furniture and showrooms with smart design, customer service, and a completely customer-centric approach.
This approach is absolutely redefining both furniture purchasing and e-commerce, and has seen them grow rapidly across Australia over the last three years and now into international markets as well. And they've got good business at the heart of what they do. Since their inception, they've supported local koala sanctuaries with a unique partnership with WWF, as well as funding, critical research around green turtles and a whole bunch more. They're proud members of 1% for the Planet and a certified B Corp. So pour yourself a cuppa and enjoy hearing how this little Ozzy wander is totally disrupting the furniture game.
Pru Chapman:
Hey, Sandy. And welcome to the show.
Sandy Morrow:
Hey, thank you so much for having me.
Pru Chapman:
My absolute pleasure. And I'm thrilled that you're here because I've been inspired by Koala as a brand for a long time. And as I was preparing for this interview, as we just discussed, there was so much that I wanted to include here. So I know that our conversation ahead is going to be super juicy and packed with the story of bringing Koala to life, and all the good stuff that you guys are doing. So yeah, I'm excited to get into it.
Pru Chapman:
Now, probably starting right at the beginning with mattresses, I personally have always found purchasing a mattress a very awkward experience in the past. When you go to a showroom, you lay around on different mattresses. You've got some awkward sales guy there telling you or trying to guide you through your sleeping experience. And Koala right from the get go totally disrupted this experience and this industry, didn't they?
Sandy Morrow:
You're right. We did, yeah. It's so interesting that you refer back to that because it was one of our really early marketing campaigns where we actually had a YouTube clip that went viral, where we had that exact story that you displayed out play out on the screen. It was so interesting to see how the traditional experience worked versus what we were really putting forward at Koala. So yeah, it's really nice.
Pru Chapman:
Yeah. Now, Sandy, you've been onboard since the start of Koala. So can you tell our listeners a little bit about what you do around there right now, but also how you came into the Koala story.
Sandy Morrow:
Yes. I guess I've always worked in entrepreneurial businesses around Byron. And obviously, I met Mitch and Danny. They're locals from the Byron Shire. Yeah, I've been working with them from the start. I've started consulting and now I'm the head of operations. So we look after everything from supply chain, all the way through to customer service and the actual way the product's designed and developed.
Pru Chapman:
Wow. And I imagine that has been quite a journey.
Sandy Morrow:
It has, yes. It's been a massive journey starting from a couple of people in the office to a group of a hundred people now. So it's really exciting.
Pru Chapman:
A hundred people? That's incredible.
Sandy Morrow:
There is. Yeah. And we're pretty much intending to grow that to about 200 people over the next 12 months, so.
Pru Chapman:
Wow, you have your work cut out ahead of you.
Sandy Morrow:
We do.
Pru Chapman:
Reverse us back a little bit. So it started here with the founders in Byron Bay and you're involved in that as well. What did those really early days look like? I mean, were you planning things out on someone's dining room table?
Sandy Morrow:
The guys were, yes. I wasn't involved with that first mattress that they were designing. But yeah, it was actually birthed here. But when they first launched the company, they decided to do in Sydney so they could be around all the media and all the contexts that they needed to really get that over the line. But the first mattress was actually designed here.
Pru Chapman:
Wow. That's incredible. Okay. So talk us through that first mattress. I mean, what was it that was so ... Was it the approach that you guys took to it that was so disruptive?
Sandy Morrow:
Yeah. Good question. There's a few things in that because mattresses in a box have actually been around for a long time. People don't realize that that's even how some traditional mattress companies are actually moving mattresses around Australia, or around the world. What we've done is actually bring it to e-commerce and offer people, all those other pillars of our business, like 129 free trial for our delivery. And really making sure we put the customer at the center of everything we do.
Sandy Morrow:
So there's a few things around the actual mattress design. So we introduced zero disturbance to consumers. So you can have your partner get up in the middle of the night and not feel them at all. So yeah, there's a few things in the mattress and also our business model that really changed the way people think about mattresses.
Pru Chapman:
Yeah. Okay. I love that because that's why you've really made some ripples is in that e-commerce space. That was the focus right from the start?
Sandy Morrow:
It was. That's right. So really the idea is about changing the way consumers think about buying products rather than specifically bringing a product out to market. So we think of ourselves a mattress brand when we started, but now we're looking at ourselves as a full furniture brand, and really making sure that we can think about how the consumer is going to use that product while we're developing it. So there's so much that goes into it that's customer-centric rather than thinking about the bottom line.
Pru Chapman:
Yeah. I love that. So talk us through, what did those first few early years look like in Koala? I mean, I just love the entrepreneurial journey of new startups because it's kind of, I don't know, for the most part throwing a bit of spaghetti at the walls and seeing what sticks, and particularly if you are disrupting an industry. So what do those first few years look like on the inside?
Sandy Morrow:
Yeah. A lot of hard work. A lot of late nights. Yeah, a lot of really hard working team members. So there's a lot that goes into it. A lot of trial and error. And I think that's what's really exciting about a startup is that we have an appetite to fail, and that's really the fail fast attitude that allows you to really understand how you can break through. So yeah, it was exciting.
Pru Chapman:
Yeah. Awesome. Awesome. And when did Koala really start to gain some traction? I mean, was it right from the start, or were there particular times where you noticed a big growth spurt?
Sandy Morrow:
There was lots of different milestones. But truthfully, it was from day one. I remember Mitch and Danny calling me up saying, "We just can't keep up with phone calls." It was literally Mitch and Danny on the phones answering people's questions about the mattress. First 79 days, we did our first million dollars.
Pru Chapman:
Wow.
Sandy Morrow:
Yeah, it was that fast.
Pru Chapman:
That's incredible. Was it just that momentum that drove momentum then? Because I imagine as a young startup doing those kinds of numbers, then naturally people start paying attention to you in the marketplace as well.
Sandy Morrow:
Yeah. And we really knew that we had to grow fast in order to be able to basically take some of that market share, and really make sure that we could establish Koala as a brand within that bit in the box kind of industry. So yeah, it was part of our strategy to make sure that we could really get our brand out there. But it was also an exciting time, as you mentioned, for getting awareness out thereof what we're really doing.
Pru Chapman:
I mean, you're in charge of operations. So where was your initial focus? I mean, was it around like, "How do we make mattresses faster?" Or was it around the logistics? Or was it getting team members on board, or just all of the above?
Sandy Morrow:
Yeah, everything. That's a tough one. Look, I think it's changed so much over the years. So in the early days it was literally, "How do we make this mattress better? How do we get more mattresses out to our customers? How do we get it there faster? How do we make sure our delivery drivers are doing the right thing by our customers? How do we make sure that we're collecting all those data points so that they can come back into our business to make our product better and to make our experiences better? How do we set up systems?" But nowadays it's really moving towards, "How do we make sure we have the right people on our team so that we can execute on what our future strategy looks like?" And then they're focusing on those other things. So yeah, there's a lot of different aspects. And as we go through that growth curve of zero to where we're at now over the last five years four and a half years, it's really massive.
Pru Chapman:
Is that all four and a half years now?
Sandy Morrow:
It is, yeah. So it was 2015.
Pru Chapman:
Wow. I mean, that's been incredible. Koala is really well-known for some really, ironically, out of the box marketing campaigns. Like you said, that's always been something from the start. And does the whole team get involved in on that, or have you just got some really smart marketing fellows in the side?
Sandy Morrow:
Oh, look, I think both and I should be careful what I say here. Look, I think one of the things that's really exciting about Koala is that we always do everything in-house. So we've had our own in-house marketing team with some really brilliant creative people. And sometimes it's a group effort and often it can just be one individual who has that amazing idea they bring to the team. They workshop and it ends up being something like the Ikea project that we did where we were running those amazing billboards cleverly positioned close to Ikea stores, which was obviously quite controversial, but it helped us to really spread the word. And obviously, in a kindhearted way. And we do have a pretty decent relationship with Ikea, so.
Pru Chapman:
Yeah. I think that's one thing that really stands out around the Koala brand as well is it's so dynamic. And so you're saying it's four and a half years. And it just has this young, fresh dynamic kind of approach to everything. So I guess for you sitting in the leadership team there, how do you guys maintain that? How do you keep that freshness?
Sandy Morrow:
Yeah. It's hard. Yeah, that's a good question. There's a lot of different things that fade into that. I think when we think about how each keep trying to motivate our teams, it's through transparency, and it's through thinking about how we build those strategies to take us to that next stage. I think when you work for such an inspiring founder, as we do with Mitch, we have the ability where he's going to continue to challenge us on what the status quo looks like, and how we can continue to break through that.
Sandy Morrow:
I think that's truly how we all realign. Maybe it's every six months, maybe it's every 12 months. We almost become a new company. So when we think about what we were doing 12 months ago, the level that we're at, the expectation that was of us or our team, or the expectation we put on ourselves as a company, it seems to almost level up or double every 12 months. So yeah, I think we do it to ourselves and we evolve as a company and as individuals through that process.
Pru Chapman:
Well, I love that you've pinpointed in there the founder, Mitch, keeps you accountable to that as well. But I think it really does it starts at the top and it filters down. So having someone that truly leads the space for you and then everyone levels up to where that new level of expectation is.
Sandy Morrow:
Yeah, he really does. And I think that's the advantage of working for a startup when the founder's at the top running it from a CEO position. So you really are true to their values, which is what the company was birthed with. So yeah, it makes it very pleasurable to work with, work for.
Pru Chapman:
Yeah. Amazing. Amazing. Now, quite often I ask business owners around these brands what the big challenges are. And for you guys, it's been fast and furious growth. But we're sitting here right now, distanced, but in the time of COVID-19. I mean, did that have an initial impact on your brand? Or how is that going with Koala?
Sandy Morrow:
Yeah, it did. I think as it probably affected everyone across Australia and the globe in different ways. So obviously, we went through a period of time that we were quite concerned about how it was going to impact not only our business, but the broader furniture industry. It's turned out that it hasn't been as severe in Australia. So we've been able to not have any closures to our manufacturing facilities in Australia, not have any impact to our warehousing and our delivery careers. And we've been able to basically maintain our business.
Sandy Morrow:
As much as we really feel for our bricks and mortar peers out there who've had to close their stores, there are still people out there who are really looking to make their homes more beautiful that now that they're spending more time in them. So we've been able to maintain the business, which is really great.
Pru Chapman:
Yeah. It's fantastic. And I think as we do have this little bit of extra space around now and space around our decision-making, and to give our decisions maybe be more purposeful about our decisions, I think brands like Koala who have this incredible underlying value system, they then make for the smart choice for people.
Sandy Morrow:
Yeah, that's right. I mean, there's obviously our core brand values and the model that we've built where we give customers the choice. We really give them the power to make the decision around our products. So when you go into a traditional retail store and you get to lie on or sit on the product, or feel the sheets, feel the pillow or whatever the product might be you're looking at, you don't get that opportunity in e-commerce. And nobody has that opportunity right now.
Sandy Morrow:
So we're really making sure people can buy it, get it in their house, see if they like it, and send it back if they don't. And that's really just what we've intrinsically built into our model as a customer-centric kind of approach. And obviously, it just works so well in this environment where we're all trying to keep the distance.
Pru Chapman:
Yeah. And also, we're all trying to make our homes a bit nicer as well by spending much time in the home.
Sandy Morrow:
Yeah, exactly. Exactly.
Pru Chapman:
So what else? When you looking at this customer-centric approach, what else are you considering in that?
Sandy Morrow:
Yeah, there's a lot. Really when you map out the customer journey from start to end. So the first time the customer really interacts with our brand through marketing. The first time they might browse our website, all the way through to someone who might not enjoy our product and wants to go through that return process, or maybe they're coming back to buy a second product or a mattress for their parents, or something along those lines.
Sandy Morrow:
There's so many different touch points that we have with that customer. And there's plenty of opportunity for us to get feedback and understand how we can improve those. But there's also ways that we can ... Without encroaching on customers crossing over the line and being too forward, there's ability for us to actually make that an even more seamless experience that is providing customers that gap between a digital experience and a physical experience. So we truly believe that there's somewhere in between those two where people can still get that touch point that you're looking for and that real added value of dealing with a human that you don't get on traditional e-commerce.
Pru Chapman:
That's really interesting, actually. And as you say, I think Koala absolutely nailed that. So talk us through, you were in mattresses for quite a while. What came next?
Sandy Morrow:
It's an interesting question that one because when we first started the brand, we saw the opportunity in mattresses. But we quickly identified that in a more broader sleep range and then a furniture range, there was a really big opportunity because the market was really calling for that ease of buying experience, and really good quality products from a trusted brand. So we started with the mattress, as you said, and we quickly moved into pillows, linen, bed bases, and other bedroom products. And now, we've identified that we've moved into the lounge room.
Sandy Morrow:
So we've had a sofa on the market for the last two years. And we're about to launch a full range of products at the back end of this year, including other lounge room products like coffee tables. We'll do bedside tables, outdoor furniture, dining tables. So really all those major pieces in your house that are difficult to buy. You either have a really long wait time. I think 12 to 16 weeks is the standard time to wait to buy a sofa. You can literally get ours in four hours.
Pru Chapman:
Wow.
Sandy Morrow:
Yeah. Yeah. So I think looking at expanding those ranges and giving people a more broader option. Because at the moment, we really offer the best option that we believe, but it doesn't hit the whole market. So everyone has different tastes and aesthetics and making sure that we can really meet those different needs.
Pru Chapman:
Yeah. I love the aesthetic of Koala, though. I have to say I think you guys have really nailed it for that modern standard style, which we all love on Instagram. Awesome. Awesome. So are some exciting things dropping later in the year?
Sandy Morrow:
There are, yeah. Yeah, watch out.
Pru Chapman:
All right. I will keep my eyes out. It didn't take me and my partner, or I'm going to say the best part of eight years to buy a new bed just because all the beds out there they were terrible for a really long time. I'm really expensive for a terrible option. So what Koala is putting out is, yeah, is very on point.
Sandy Morrow:
I think so many people have that story. Definitely.
Pru Chapman:
It's funny, isn't it? Okay. So what's the size of Koala now? Like staff, production, distribution, what has it grown to become?
Sandy Morrow:
Yeah, good. So currently, we operate it in Australia and Japan, which is pretty, pretty exciting. We've been in Japan for about two years now. And the business is growing quite substantially now. So it's really exciting. We have a team over thereof, probably, 10 to 12 people that are focused specifically on localized marketing and dispatch. We still run the core function out of our head office in Australia. In the future, we see an opportunity to launch into other Asian markets and potentially more globally. So we would really like to take the brand globally and really establish ourselves as a furniture brand.
Sandy Morrow:
When we think about how many staff we have, I think I mentioned before we have about a hundred employees at the moment. And we're probably going to double that over the next 12 months. So yeah, again, just really focusing on doing everything in-house. We have our own digital team. We design all our products in-house. We have our own internal customer service team. It's an Australian answering the phone when you ring up or you can jump on chat.
Pru Chapman:
Keeps you tight, doesn't it?
Sandy Morrow:
Really does.
Pru Chapman:
That's what it feels like. It really keeps it like a family unit.
Sandy Morrow:
Yeah, and we're all in one office. So the customer service teams are only a couple of steps away from the team that design the product. So if they get a new query that they can't answer, they literally just have to jump over there and ask that question. So yeah, it's really good. The product team work really closely with the marketing team to understand, how are we going to work together on these products? And what's the consumer feedback that we're getting to make sure that we're aligning these products with what people want?
Pru Chapman:
And I love the way we're moving away from this globalized business model and into a more local centralized business model. And I think you've just hit the nail on the head with what the advantages are is that the customer service team are a few steps away. You don't email them and wait for it to come back and then put your submissions through the product requests. You're all in one room. You're all having the conversation. You're all sitting on the same sofa, essentially. There are so many additional points of connection.
Sandy Morrow:
Yeah. I think we have that luxury right now. It'd be interesting to see in five years' time, if we continue on this trajectory, how we can maintain that close knit community, because it does get challenging for those big, big players. How do they keep that startup or fast growth mentality? And something that we often speak about on the leadership team is how do we keep that high-performance? And how do you attract people who have that entrepreneurial spirit once you start to move into the more corporate world? Now we're not there yet. But as we tip toe or put our little toe in there, I think you get a bit of a feel for the difference. And yeah, trying to manage that is interesting and challenging.
Pru Chapman:
Yeah. That's an interesting path ahead for you guys as you mentioned it. Now, just out of curiosity, why did you choose Japan?
Sandy Morrow:
Oh, that's a really, really tough question. And the truth to the answer is there probably isn't a great answer. Look, we tested a couple of different international markets. So we tested New Zealand. We didn't find that the market was big enough for us. We dipped our toe in Hong Kong as we're interested in to understand what was happening in China and what opportunities might exist there.
Sandy Morrow:
We identified that the Japanese market resonated really strongly with our brand. We had little no competition there. So they didn't have a very evolved e-commerce solution as far as big furniture items went. And we had some connections there that allowed us to really set up business there. Really low cost just, again, just get a bit of a feel for the market and see where we can take it. And as I said, that was two, two and a half years ago now. And the success is there. So yeah. And we're still just the smallest little drop in the ocean of their market, even though we're doing quite well.
Pru Chapman:
Yeah, incredible. I love it. Awesome. All right. Well, something that, I mean, seems high and mighty around Koala is the focus on good business that you guys have, and positive impact. And I love on your website it actually says, "We believe in reversing environmental trends and leaving the earth in better nick than we found it." And it sounds as though you guys are really doing this from the ground up. Has that always been the ethos of the company? Has there always been that focus on sustainability?
Sandy Morrow:
Yeah, 100%. Yeah, definitely. So everything we've done, even from day one when we first started selling the first mattress at Koala, we were supporting the Koala Wildlife Sanctuary in Port Macquarie. So I think for every mattress we sold, we gave $10 to the Koala Sanctuary, and we basically adopted a koala there. So I don't know exactly what the figure is. I was trying to grab it before I came here today. But we gave a significant amount of money to that group in the first 12 months, which was so exciting. I think one of those milestones of really feeling like you've been able to achieve or give back make some meaning out of the organization.
Sandy Morrow:
So I mentioned Mitch earlier, who's obviously, and Danny, really inspiring in how they want to set the values for the organization. Mitch is very avid on making sure we can maintain those, including efforts towards the different groups that we work with, and making sure that we really don't make decisions that don't align with our values. So for instance, we might have suggestions to bring products to market that might fill a gap or a void in our offering yet they don't really align to what we're trying to achieve. They might not be sustainably sourced or whatever it might be. And we really make the right decision there, which is great to be a part of.
Pru Chapman:
Yeah. And is this something ... So it's always been there from the start. I mean, it must have grown over time because for all of our listeners, I'd actually love you guys as a little exercise, go and jump on Koala's website. I think you'll have your socks blown up off just about how much you're doing because there's definitely the support of koalas that you're talking about there. But also this ethical supply chain and the consideration that you give in choosing your products as well.
Sandy Morrow:
Yeah, that's right. And look, it's really challenging when you're working against an industry that really is only just starting to turn the page on what sustainably sourced product looks like. So it's an uphill battle and there are areas that we still are trying to get out the industry to improve on. But yeah, we were really careful in the way that we do source our raw materials, and making sure that the manufacturers that we're working with meet all of our standards that are required. So yeah, there's a lot that goes into making sure all those little Ts and Is are dotted and crossed, so.
Pru Chapman:
Yeah, absolutely. And I think it becomes really sticky to your target market as well knowing that someone like me is definitely in that pool. And so it's like, "Okay, great. I love the convenience. I love the customer-centric approach that you've got. I love all of those things. I love the design." But if you're also doing the right things behind the scenes, then it's sticky.
Sandy Morrow:
Yeah. And I love that you said that because it's an interesting thing as we go through some pretty crazy recruitment over the last couple of years. It's so often something that comes out in the interview with people who are applying for roles with us is that. It really resonates with people from our demographic in this age group. Yeah. So it's really special to know that people recognizes us as that because we put a lot of energy into it.
Pru Chapman:
Yeah. And I personally think in this time, you and I actually were just talking before we came live about this period that we're going through with COVID. I personally think that people they're learning to live with less right now. So they're purchasing less, but they're purchasing well. And I really hope that coming out of COVID-19, then we can maintain this, this focus on supporting businesses that are doing the right thing.
Sandy Morrow:
Yeah, yeah, 100%. You saw we were chatting through that are we starting to turn everything back on now? And have we had enough time for people to really take a breath and recognize these changes that have happened and what we should hold on to? So yeah, I think it would be really exciting for people to have more thought process going into when they're buying products, and thinking about what the end of life is for those products. How long are they going to hold onto them for?
Sandy Morrow:
So I guess one of the first things we learned very early on in our journey of sustainability and in furniture items is making products that are going to last because the quickest way to create an issue with furniture is to make products that are going to be thrown out or put on the side of the curb, like we often say, when it's only 12 months old. And look, to be honest, there is a lot of that out there in the market. So making sure that we're really giving people products that when they don't want them anymore, they can give them to someone else or on sell them or they can go through a charity group. That's what's really important to us.
Pru Chapman:
Yeah. That's excellent. Excellent. Now, I also read that you've planted two billion trees. This is pretty wild.
Sandy Morrow:
Two billion. That's the target for 2030, so [inaudible 00:26:01].
Pru Chapman:
That's a huge amount.
Sandy Morrow:
That's right. I'm scratching my head on that. Yeah, that's one of the efforts that we're doing with the WWF. So that's really exciting. I think it's part of a campaign that we're doing really to help support the koalas. So obviously, the name was birthed out of the idea of being able to support koalas as part of our broader business. And we've done a lot of efforts through the years, including supporting the wildlife sanctuary down in Port Macquarie for koalas.
Sandy Morrow:
We have a wildlife sanctuary actually up here that we've supported and actually built to re-establishing and removing campus from an area where the koalas are established. And more importantly, these days we work really closely with WWF. So relevant to the bush fires we've had recently, we're actually working on a koala detection dogs who actually travel through those areas, find koalas that have been hurt, and allow them to be cared for and then rehomed. So yeah, it's really great.
Pru Chapman:
Yeah. I'm fascinated by those dogs. So [inaudible 00:27:04], isn't it?
Sandy Morrow:
I know. And so kind for them to not do anything else to the poor animals.
Pru Chapman:
Yeah. But just to rescue them. Yeah, I was definitely thinking about you guys as we had those raging bush fires and just how this work is more important than ever right now bringing koalas back into safety. And also, I mean, turtles black cockatoos. There's a lot there.
Sandy Morrow:
There is. Yeah, you're totally right. So the green turtles are so cute. It's an interesting journey. I don't know if your listeners are aware that the sand temperature is actually what dictates the male or female in the eggs of the baby turtles. So because the global warming, the sand temperature is meaning that we're only getting mostly females. So they're not actually able to reproduce just because there's an imbalance of the sexes.
Sandy Morrow:
So there's this really amazing group of people working with WWF on a little Island on the North coast of Queensland, far North Queensland, called Milman. They're actually testing different methods to see how they can cool that sand down, what impact it will have, and whether they can actually embed them into other turtle areas to try to restore the turtles. So yeah, it's amazing stuff.
Pru Chapman:
This is good business at its best. I absolutely love it. Now, is it true that you donate or recycle all of the mattresses that are returned to Koala?
Sandy Morrow:
Yes, 100%. We often get asked that.
Pru Chapman:
That's huge.
Sandy Morrow:
It is. It is. Look, I can give you a bit more information there that might allow you to understand how we do that. So we work with a bunch of different charity groups. And to be honest, we work with a lot of the small guys. So they're women's shelters. They're helping refugees who are newly homed. There's a bunch of different reasons that people are in need. We're really trying to make sure that the actual product goes to the person that's needed rather than the product being on sale for cash to then give cash to people.
Sandy Morrow:
We have five facilities across Australia that is specifically dedicated for this. So any returns that come back from our customers because they weren't quite right, they go through a QC process to make sure that everything in there is good and they'll often be refurbished. And then we work with the charities to rehome them. So that depending on the product category but with our mattresses, is usually over 50%. 50% to 60% of our mattresses go through that way. And the rest, we actually we work closely with a carpet underlay company. So they actually get chipped up and turn into carpet underlay, which lasts usually for about 10 years. So although they're not being raised as a mattress, we're still getting an extra 10 years life out of that foam.
Pru Chapman:
Well, absolutely incredible. Incredible. Now, something else that stood out to me. Guys, this is why you got to go visit the website. There's all these things. Is your huge focus on company culture as well. And I guess we've discussed a little bit all of that. I mean, what's it like on the inside of Koala? How is it going to work? It feels like it's pretty fun in there.
Sandy Morrow:
It would be, yeah. Yeah, it's an interesting topic culture because truthfully, I don't think culture is birthed out of the ping pong table, and the free food, and the fray drinks that we have every Friday.
Pru Chapman:
You got free food?
Sandy Morrow:
Yeah, we have free food. I think it's really more around transparency and working in a high performance culture, and the respect that everyone gets across our teams. So to give you an idea, I've never worked in an organization that presents their full profit and loss statement on a projector in a town hall once a month for the entire organization. And as the CFO walk them through the lines to make sure everyone understands what we've achieved, how we've achieved it, and where we need to improve.
Sandy Morrow:
So that kind of visibility just gives people power. So it motivates them. That on top of the fact that we really encourage people to be working in a high performance environment, we encourage people to be curious, and we give people the boundaries so that everybody has a voice. Everyone can be heard. Yeah, and we obviously go through a really strong recruitment process to make sure we have people that are aligned to our values. It just all lines up. So people really enjoy working there.
Pru Chapman:
And it sounds like people really have the opportunity to be their best as well. And I think intrinsically, that's what we all want when we go to work is to really to make a difference in whatever way that that might be, and to spread our wings.
Sandy Morrow:
Yeah. Look, I think we're all being tested because every day we grow and stretch and that means that you as a human have to be. So I think in order to work at Koala, you have to be prepared for that. And that's generally what people are looking for is they want to be stretched. They want to get exposure to more. They want to see how far they can take it. And so, they're looking for that feedback and that constant ability to breakthrough.
Pru Chapman:
Yeah, very cool. Okay. Now, Koala is also a B Corp. And a lot of the companies that I interview on here, a lot of the businesses are B Corp. So why was that important for you guys?
Sandy Morrow:
Yeah. Look, I think it's really great to get an external view of how we sit in the world so that we can make sure we can continue to improve because you can speak so favorably of all the things that we do. And obviously, we spend so much time making sure that that's right. But with this always so many things that we can do better. And as we continue to innovate and bring new products and grow into new markets, we need to make sure we can understand how we can do that better. And they're just a great partner for us to do that with, so.
Pru Chapman:
Yeah. We've heard of the B Corps that have been on here as well, like I said, quite a few and they just love that. It's a process to go through. It's that checkpoint.
Sandy Morrow:
Yeah, it's forces you to.
Pru Chapman:
Yeah, it forces you to. You're accountable to. And it's a really great process to go through, to look internally.
Sandy Morrow:
Yeah. And I think it's a great way to show the world that you're being transparent in the way that you're approaching things. So no one will be perfect, but how do we really make sure that we're focused on improving what we can?
Pru Chapman:
Yeah. Amazing. And then finally, you are a member of 1% for the Planet as well, which-
Sandy Morrow:
Yeah.
Pru Chapman:
... I absolutely love. I mean, that's no small feat for a company growing like Koala is.
Sandy Morrow:
Yeah, definitely. Look, I guess it's part of the program that we have with WWF and the other groups that we work with. So it's really nice for us to, again, be able to certify that what we say we are doing does actually line up on our balance sheet and our P&L.
Pru Chapman:
Yeah, incredible. Incredible. Ah, so much. So many good things. So what's next up for Koala?
Sandy Morrow:
Oh, heaps of things. I mentioned earlier-
Pru Chapman:
We are in a global pandemic [crosstalk 00:00:33:17].
Sandy Morrow:
Yeah, exactly. Slow down. Slow down. Look, to be honest, that the exact opposite feedbacks being given to my team is that we've got to find a way around this. And it is really interesting times to try and strive forward. But yeah, look new product development. We're released moving forward with bringing out that broader furniture range, which is-
Pru Chapman:
I'm excited about that. I'm always looking, I'm not buying, but I'm looking at new furniture options. So that's exciting.
Sandy Morrow:
Yeah, it's always great. We're really looking at how we can bring that digital experience to be more human and more real. How can we get that interaction with our consumers? So watch out for that. I think that'll be really cool. We're really expanding our thoughts around customer experience and what that looks like. And then yeah, international markets are expanding into Japan and looking at other markets that might be suitable for us. So lots of things ahead.
Pru Chapman:
And cheekily doubling your team at the same time.
Sandy Morrow:
And doubling the team to support all of that. Yeah.
Pru Chapman:
It's fantastic. And it sounds like really a great ride to be on.
Sandy Morrow:
Yeah. Yeah. Oh, it's fantastic.
Pru Chapman:
Awesome. All right. Well, Sandy, I'm going to wrap us up with some final questions that we ask all of our One Wild Ride guests here. So for you, tea or coffee?
Sandy Morrow:
Tea.
Pru Chapman:
No judgment. Fate or free will?
Sandy Morrow:
Both. But I have to say fate.
Pru Chapman:
I like it. Do you have any kickass daily habits in place?
Sandy Morrow:
Yeah. I don't know. Glass of wine at the end of the day, especially now.
Pru Chapman:
That's a good one. I love your honesty. All right. Now, this one has a little caveat around it for this particular time. But if you could jump on a plane tomorrow and go anywhere in the world with anyone, where would you go and who would you go with?
Sandy Morrow:
Okay. So COVID aside?
Pru Chapman:
Yes.
Sandy Morrow:
COVID aside. Look, I think the Obamas would be really interesting. And where to, I struggle with that. I think I would love to go back to Europe.
Pru Chapman:
Yeah. Anywhere in particular?
Sandy Morrow:
Maybe France, Italy and Spain. Drink nice wine and eat good cheese.
Pru Chapman:
All of the good things.
Sandy Morrow:
Yes.
Pru Chapman:
I love it. I love it. Okay. Who else would you like to see me interview on the podcast?
Sandy Morrow:
Oh, The Rainbow Fire Love Queen.
Pru Chapman:
The Rainbow Fire Love Queen?
Sandy Morrow:
Yes.
Pru Chapman:
Tell me more.
Sandy Morrow:
Yes. Her name's Nadia Remi. Yeah. You'll have to look her up.
Pru Chapman:
I definitely am looking up a name like that. And then finally, Sandy, how is the best way for people to connect?
Sandy Morrow:
Just on LinkedIn.
Pru Chapman:
Perfect. I love it. Sandy, thank you so much for joining me.
Sandy Morrow:
No, thank you.
Pru Chapman:
I absolutely loved it.
Sandy Morrow:
Thank you.