How important are brand name products to you? What if you could ensure you were getting a high quality product, and you could tell if it was organic, non-GMO, or gluten free right off the bat? What if this product were much cheaper because it didn’t waste money on branding or marketing? Would you try it, or would you stick to the brand names you already know and love?
Created by entrepreneurs Tina Sharkey and Ido Leffler, who hope to take advantage of online distribution channels such as Facebook, Twitter, Instagram, and YouTube, Brandless seeks to change the way consumers buy everyday essentials. With their direct-to-consumer business model and $3 price point for every single product on the website, they hope to make trips to the grocery store to stock up on pantry items a thing of the past.
Brandless’ products include a collection of items from various categories, including non-perishable food items, cleaning supplies, health and beauty products, personal care products, and office supplies.
What Does Brandless Offer?
The food category sells everything from canned goods and coffee to snacks and sauces, all priced at just $3 a piece. Some of the housewares available include measuring spoons, can openers, knives, and corkscrews, while cleaning supplies include things like all-purpose cleaner and dish soap. On the beauty and personal care front, they offer items such as toothpaste, body lotion, and hand soap.
Brandless sets itself apart not only by offering products that are, as the name suggests, brandless, but also by carrying a wide range of household essentials and selling them at the same price point. They are able to do this by stripping away what’s known as the “brand tax,” or the costs associated with the traditional consumer packaged goods distribution model, and the company delivers the goods straight to the consumer instead. This is why Brandless can offer their products at, on overage, 40% less than comparable brands.
Another way that Brandless has been able to drastically lower the cost of its products is by reducing how many it offers. The company has narrowed down its list of items carried to just a couple hundred essential items, and carry one of each item rather than several different brands of the same thing, making the shopping experience simpler and more efficient. They still carry a wide range of products, however, so the selection does not feel small.
The packaging is simple, clean, and straightforward, listing important information on the label — organic, fair-trade, non-GMO, kosher, gluten-free, sugar-free, etc — so you know exactly what you are getting.
What Sets Brandless Apart?
One of the biggest differences between Brandless and other major consumer packaged goods (CPG) companies is their business model — rather than selling through traditional retail stores, the company will offer all of its goods online. This will cut distribution, breakage, and sales trade costs, along with many of the other fees that come with retail distribution. Having the consumer come straight to them also creates a strong relationship with the consumer, something the majority of CPG brands lack.
“Most CPG companies don’t have any relationship with consumers,” says Sharkey. “If you think about how products are distributed today, their customers are the stores, not the end consumer.”
Brandless has raised over $50 million over three rounds of funding prior to their launch, meaning it shouldn’t be long before we can begin taking advantage of this exciting new business.
Learn more about this innovative new startup in the video below.
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