In order to standout in today’s retail environment, one thing is certain ― you must dare to be different. Cutting-edge retailers pushing the innovation envelope are enjoying success ― while others fear that out-of-the-box thinking is too much disruption for their customer base. Those that are able to find a middle ground will score shoppers wallet-share. One retailer that is breaking the mold is Brandless, a no-name, everyday essentials retailer that launched in July 2017.
The goal for Brandless is simple: sell grocery and household essentials online at a $3 price-point. By removing brand names the retailer is able to save consumers about 40% with no-frills packaging and avoiding the hidden costs of marketing, advertising, and of course, branding.
Traditionally if a consumer runs out of a product, they know which one they are going to purchase to replace it. The majority of brands hang their hat on the reputation of their products from quality to pricing, flavor to environmentally consciousness. So how does Brandless overcome the hurdle of ensuring quality despite the no-name packaging?
The retailer heavily relies on customer sentiment of over-paying for branded items. Additionally, for every purchase made, the retailer donates a meal through Feeding America.
The retailer is still in its infancy, launching just months ago, and will need time to develop a trusted relationship with customers as a recognized, respected retailer. A lesson the retailer is learning, ironically, is the importance of branding and a strong customer base.
Discover more on how Brandless is challenging the traditional retail model at NRF 2018 on Tuesday, January 16 at 2:15 pm. Brandless Co-Founder and CEO Tina Sharkey will share insight during the roundtable discussion at the “On the Eve of Disruption: Four Next-Gen Retailers on the Rise” session.