This past week the internet was abuzz with news of CPG startup Brandless. Headed by serial entrepreneurs Tina Sharkey and Ido Leffler, Brandless is selling consumer staples like food and healthcare direct to consumers all priced at $3.
“It felt like modern consumption was really broken,” says cofounder and CEO Tina Sharkey. Millennial consumers don’t want to buy their parents’ brands, she argues, and all brands are too expensive, marked up to cover the costs of distribution, warehousing and retail space. By eliminating what she refers to as this “brand tax,” she figured that Brandless could slash the costs of basic packaged consumer goods that people buy regularly, and potentially become a significant player in a $2 trillion market dominated by the likes of P&G and General Mills.
But the biggest difference between Brandless and all the major CPG players is its business model: Rather than sell through traditional retail stores, the company is only offering its goods online. By doing so, the company will have what few of the CPG giants have – a direct relationship with the consumers of its products. It plans to exploit this relationship through a heavy investment in data and by building a sense of community through memberships and philanthropy (with every purchase, the company will donate to Feeding America).
Why It’s Hot
Move over Warby Parker, Casper and the rest. You’re not the only ones willing to take on the big boys.
And rather than relying on product brands, there’s just one brand in this game to promote – and it’s Brandless.