But the wake-up call spurred Design Mobel to realize its competitive dream - to design and trademark a unique, 100% sustainable sleep system and launch its own custom-designed retail stores worldwide.

In 2004, Design Mobel owner Dave MacFarlane and Design 360 were preoccupied with planning a long term vision for the successful company he had started in 1988. Meanwhile, local retailers were seduced by cut-price imports over Design Mobel's superior quality bed furniture.

"You need a long-term vision," says Dave. "But the world markets are so dynamic that they can change within weeks. It's important to create an organization that is agile and able to change. And we learnt this."

To future-proof the company, MacFarlane, who had been away for two years, resumed management of the business. As CEO, he gradually re-established Design Mobel's position in the local retail market, and laid foundations for growth. This involved: assembling strong talent to design and develop sustainable new product lines; hiring Bryan Richards to revitalize the Design Mobel brand and launch the unique Bodyfit Sleepfit System; and designing plans to diversify into retail and marketing on a global scale.

"Design works throughout the whole company," says Dave. "All too often people look at design as purely aesthetics. After the audit, some of our processes definitely became more robust. For example, the process of aligning manufacturing, marketing and design so that you have a well resolved product to take to market is important."  

MacFarlane was so inspired by Brian Richards' keynote speech at the first Better by Design Conference in 2005; he hired him on the spot to brand the company and its ground-breaking new product.

The Bodyfit Sleep System was launched locally to critical acclaim in 2005. What makes the design a world-leader is its use of healthy, sustainable products and manufacturing processes. Including a complete waste recycling program - all products are made from materials that are continuously recycled in a closed loop. Mattresses are manufactured from environmentally-friendly natural latex and organic bamboo. The Swiss-inspired slat beds are constructed from a sustainable resource of native rimu - for each Bodyfit system sold, another tree is planted.

Responsible resource management extends to Design Mobel's contractors.

"Every one of our suppliers is audited on an annual basis. If they don't make any improvements regarding sustainability, we put them on notice," says Dave.

In 2007, Design Mobel won the Supreme Award for Sustainable Business in New Zealand. The same year it launched the high concept Okooko stores in Wellington, Hong Kong and Philadelphia. Okooko stores sell Bodyfit Sleep Systems and a range of eco-friendly bedroom products such as linen, duvets and blankets. From 2008, a new shop will open each month. The long term goal is 50 stores in five years, all over the world.

"Okooko is Maori for 'to cradle in arms'. "Obviously it's about sleep, but we like to see it as cradling the world, in terms of sustainability," says Dave. In the future "we want to turn people's rubbish back into furniture and products of value rather than putting them into landfill."