Pharmacopia, MALIN + GOETZ, and down etc are three brands that have found success in the hospitality industry by having their products featured as guest amenities in hotels. While this opportunity provides exposure and a means for potential customers to experience the products, it does not guarantee immediate success in other sales channels. These brands have shared their experiences with this business model and how they have navigated the challenges and opportunities that come with it.
Pharmacopia, known for their aromatherapy and clean beauty products, entered a licensing agreement with Hunter Amenities International in 2009. This partnership allowed them to focus on other aspects of the business while Hunter handled manufacturing, relationships with hotels, and paying royalties to Pharmacopia. The royalties from hotel amenities sales helped fund the business and allowed them to avoid seeking investors. Today, Pharmacopia’s products are used by over 500,000 guests every day in various hospitality establishments around the world.
MALIN + GOETZ, a gender-neutral lifestyle brand, views their hotel amenity business as a marketing platform rather than a sales channel. They prioritize the quality of properties where their products are featured and see it as an opportunity to reach their core consumers and potential customers. Despite the potential challenges of preserving brand equity with the consolidation of hotel groups, MALIN + GOETZ has found success in leveraging their presence in the hospitality industry to expand geographically and grow their overall distribution.
Down etc, a bedding company, has been providing sheets, pillows, and bedding to hotels, casinos, and cruise ships for over 20 years. While their products do not have the same visual advantage as personal amenities like beauty products, they have still managed to attract customers through their hotel partnerships. Their DTC site and Amazon presence are growing, but hotel and hospitality partnerships remain a significant source of sales volume for the company. The company prides itself on providing hotel-quality products to consumers for a great night’s sleep.
While the hotel amenity business has provided valuable exposure for these brands, converting hotel amenity users into direct consumers can be a challenge. Many hotels have moved away from providing sample-sized amenities that guests can take home, making it harder to drive direct sales. Brands like Pharmacopia have experimented with geo-targeting and other marketing strategies to encourage guests to purchase full-sized products after trying them in a hotel room. The ultimate goal for these brands is to leverage their success in the hospitality industry to expand into international markets and reach a wider audience.
In conclusion, the hotel amenity business has proven to be a valuable marketing opportunity for brands like Pharmacopia, MALIN + GOETZ, and down etc. While it may not directly translate to immediate success in other sales channels, it has helped these brands gain exposure and reach potential customers in the hospitality industry. By navigating the challenges and opportunities of this business model, these brands have found ways to leverage their presence in hotels to grow their overall business and reach new markets.
