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BUSINESS PROFILE YOU DON’T NEED A NAME TO OFFER THE BEST Brandless Aims to Provide Better Products for Less
Consumers have always wanted more for less, but what about better for less? With so much retail traffic happening online, people have access to more products than ever, and often for less money, but they aren’t always meeting the “better” category. It’s a problem the company Brandless set out to solve. Recognizing some of the changes in consumer behavior and the struggle big brands were having, entrepreneurs Tina Sharkey and Ido Leffler saw an opportunity to offer something that others weren’t. Ever notice how a store- brand item costs much less than the name brand? Sharkey and Leffler did, too. Sharkey says, “Ido was really bothered by the idea that if people really understood what things cost versus what they pay for them, there would be rioting in the streets.” In an effort to provide better products at a lower cost to consumers, the pair began looking at what consumers want. After securing funding from big-name investors, the pair created Brandless, which is essentially an online grocery store. With the motto of ”better everything for everyone,” Sharkey and Leffler are capitalizing on a gap in the market. Now just over one year old, the company has used innovative ideas backed by research to make Brandless a contender in the CPG industry. CUTTING OUT THE MIDDLEMAN By nixing inefficiencies in the distribution system with their business model, Brandless can offer every item for $3 or less, from non-GMO maple syrup to “clean” face wash. The company’s products are high-quality by most standards — all the food on their site is non-GMO, most is organic, and the household products adhere to EPA standards. KNOW YOUR MARKET Brandless started with two people who recognized a problem and sought a solution. Sharkey and Leffler used their initial curiosity and observations of market trends to mold
their business model. They researched what consumers were using most often, where costs were unnecessarily high, and spoke with manufacturers all over the country to find out how they could resolve these inefficiencies. Brandless isn’t the first company to try this approach — Trader Joe’s uses a similar concept of providing quality goods at a lowered cost, just adding their own name to products they buy wholesale. Brandless is capitalizing on the e-commerce portion of this industry that consumers seem happy to jump on. Having your entire shopping list delivered to your door is a tantalizing offer. BEYOND THE SALE Being an online retailer doesn’t keep the company from connecting with consumers offline. Sharkey and Leffler recognize the importance of building a relationship with the people who shop with them. “Direct-to-consumer is not a channel; it means you have a relationship with someone,” Sharkey says. The founders are aware that their audience is part of a community who are conscious of what they consume, and they want to connect with it. Recently, Brandless set up a pop-up shop for two weeks in LA. The multi-day event featured a series of guest speakers, including experts in wellness, social good, beauty, health, and entrepreneurship. As Fast Company writer Elizabeth Segran says, “Startups have realized that physical shopping
needs to be about much more than just transactions.” WHEN IT’S TRULY THE BEST
In their commitment to the best, Brandless has a team of curators who carefully test and select everything they offer. This might sway brand loyalists fearful of straying from their favorite ketchup brand. In a time when we are often exhausted by endless choices, Brandless is making some of them for consumers. Instead of offering, say, 10 different types of shampoo, Brandless sticks to one or two offerings per category. This helps keep their costs down and simplifies the shopping process for a customer. THE VALUE OF TRANSPARENCY If it tastes as good or better, costs less, and is possibly better for you, maybe it’s worth going Brandless. The company may be cultivating its own brand loyalty by attracting customers who appreciate their emphasis on quality and transparency. It’s something the company doesn’t shy away from — they’re trying to redefine the idea of a brand, not reject it. Heavily featured on their website is their commitment to contributing a meal to Feed America for every purchase made. In their first 28 weeks of being open, they’d reached 250,000 meals. By cutting out the middleman, they’re saving money and passing it on to the consumer and the community.
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