Time to Put Aside Brand Loyalty
San Francisco startup 'Brandless' is selling brandless foods and household staples exclusively online. Everything from peanut butter to agave nectar will be priced at $3. Perhaps Brandless will succeed in helping you abandon your brand loyalty.
The business model: Cut out supermarkets and traditional marketing, funneling that money instead toward making products that can compete with pricier, name-brand counterparts.Brandless hopes its simple, one-price-for-every-product proposition will be another draw, much like the Dollar Shave Club, which upended the men’s razor market when it introduced a subscription service costing $3, $6 or $9 a month. In a few cases, $3 buys multiple Brandless items, such as a two-pack of organic macaroni and cheese. Shipping is $9, or free for orders of $72 or more. People who pay a $36-a-year membership fee get free shipping on orders of $48 or more.
How Brandless will plan on establishing its brand is a difficult question to answer. I also don't expect Brandless to overtake Amazon's grocery store business, however, their new approach toward grocery food brands is refreshing.
The trick, industry experts say, will be to convince shoppers that Brandless products are of a high enough quality that shoppers feel like they are getting a deal.“They need to make sure their quality is by far the best in the market for the price they are charging,” said consumer-products consultant Thom Blischok, especially since price-conscious Americans, who comprise nearly three-fourths of the U.S. consumer market, generally aren’t willing to experiment with their household staples.
“The average consumer shops in multiple locations,” he said. “For some people, we’ll be their everyday destination, and for some people we will be their No. 5.”
I'm curious as to what you guys think about this. Would you have any problem buying brandless food and supplies, if it meant it was cheaper and potentially higher quality? What do you think of the future of Brandless?
Personally I feel as if brand loyalty stems from a brand's ability to establish trust with the consumer. If I may be getting a slightly different product every time I purchase from Brandless (as they could switch the product without me knowing), I'm not so sure I could easily adjust to Brandless.
If you go to regular grocery stores (Kroger not Whole Foods) you will find a lot of the store brands are actually a bit cheaper than what's being advertised here. I'm not too keen on paying a membership fee to shop (Costco). I think they're trying to make the Amazon version of a Whole Foods Costco.
I have no qualms buying things like toothpaste online, but I already do that from Amazon like once a year tops, and still like to pick out fruits and meat at an actual store.
Interesting concept though.
They have this in Canada (retail though)
'no name'
https://en.wikipedia.org/wiki/No_Name_(brand)</a">no name
Introduced March 21, 1978 Loblaw Companies
It's called Trader Joe's/Trader Jose's/Trader Guiseppes.
It is not a new business model and in the food industry is called private labeling and has been around...forever. This product however makes me think I am 1 step closer to eating "bachelor chow".
Honestly, Trader Joe's might be cheaper as well. I checked a couple items that were name brand and they were cheaper on Walmart.
First hand knowledge, Trader Joe's is just as cut-throat as Walmart in their buying margins bids. Honestly they have great products, I don't see myself buying an "unbranded" product over even a Trader Joe's brand...because even "unbranded" is a brand.
I think a big differentiator here is that Brandless charges $3 for every item. I can't really think of a good reason as to why they would do this though from a profit maximization standpoint.
It is really a great deal but its future progress is unknown and it can elevate the prices even.
At some point they would need to raise prices from the original $3. I feel as if doing so could cost them many customers.
The only BRAND that matters is SOYLENT!
And St. Venus Theatre
lol they are good quality
Anyone try Soylent? I was thinking about a 3-day cleanse using only their drinks. Basically just going vegan/liquid for 3 days.
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