Popular online bedding company Koala, which markets itself as quintessentially Australian, will cease manufacturing its mattresses domestically and make them in China instead.
The company, which aggressively targets Millennials through social media campaigns as an ethical and sustainable bedding alternative made in Australia, will move the production of its signature mattress overseas to support its growth in Asian markets.
Staunch supporter of Australian-made products, Harvey Norman executive chairman Gerry Harvey, slammed Koala’s move, saying the name of the company implies the product is made domestically.
“Anyone selling imported mattresses are doing it because they can make more money,” Mr Harvey said.
“The marketing is dishonest … they are pretending they are Australian.”
Gerry Harvey says Koala’s marketing is ‘dishonest’. Picture: Luke MarsdenSource:Supplied
The retail giant’s co-founder said overseas imports made it harder for local companies to compete in bedding and furniture.
Mr Harvey said his store predominantly sold made-in-Australia bedding, supporting local companies such as Sealy, SleepMaker and AH Beard.
Koala mattresses have become increasingly popular due to competitive pricing and delivery guarantees of less than four hours.
According to its website, the Sydney-manufactured mattresses are “made in Australia, for Australia”. However, the company deregistered itself last year from using the Australian Made trademark.
The company is backed by cricketer Steve Smith and offers 13 different home living products, 11 of which are made overseas.
Nine items are manufactured in China and the other two in Europe. The decision to move the mattress overseas means only one product – a work-from-home desk – will be domestically produced, in Victoria.
The company targets younger audiences through social media.Source:Supplied
