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Trends14 August 2017

Brandless.com – a shop selling all products for $3 and without a logo, but with a great mission and quality

Social trend

According to the PLMA’s 2016 study sales value of products from own brands only in the United States has increased in recent years by more than 5% (currently a sector worth about $ 120 billion per year). In Poland, the share of own brands in total FMCG sales is around 17% and shows an upward trend. We buy quality products at a good price, we do not always need products that scream at us with well-known logos (though recognizable brands usually produce so-called private labels for chain stores). A great response to this strong consumer trend is the newly launched Brandless.com project, which after several years of preparation started several days ago in the US.

Through the platform, funded by an investor with an amount of 50 million dollars (!), its creators intend to sell only their own brands, in distinctive, minimalist packages, devoid of any trademark, except for Brandless of course. What’s interesting, all the products in the store, and there are about 200 of them now, including beauty, food and home goods, are priced at $ 3 per item. After reading the entire webstore, fledgling blog and social media publications, there is a strong ideology behind the project, expressed in the motto of the brand: who said high quality must be expensive? The best proof of the company’s mission is to ensure that healthy, organic, gluten-free, GMO free products comply with the Fair Trade guidelines. Despite the huge financial support, the company does not intend to advertise in the press or television. The use of social media has only enable savings to be spent on the creation of even better offers for customers.

In the press release we can read that the creators wanted to create something completely new – a shop that was different from everything else. A place where every single product is not only a great price-quality ratio, but also a clear history of production. This, in turn, is a manifestation of the trend, adapted more and more often by a much larger, also global, brands. Brandless is to be (and stay permanently) an uncomplicated platform with a transparent offer that is accessible to everyone. As a modern business directed largely to the younger client group, the company is also developing a charity project with the Feeding America Foundation. Each order placed at the store is a meal for the starving person to whom the foundation has a chance to reach. Take a look at the screen from the shopping cart below – is there a better way to persuade the customer to finalize the purchase? Priceless.

Selling cheaply products of – at least – decent quality. Is it possible? That was my first question when I took a look at the characteristics of this store and its honest approach to customers, suppliers, the environment.It turns out that it is. Brandless minimizes the costs of promotion, protection and maintenance of the brand (in the USA this cost is called BrandTax) – the products in the store are “no name”, and the only cost of promotion is the communication of the brand of the store that distributes it. Brandless on the basis of several years of research proves that we pay up to 40% more for products, just because they have the logo of a well-known brand. The company works in line with the “BrandTax-free” principle, which cuts down on any additional costs that increase the price of a product, while constantly monitoring its quality. How does the BrandTax-free model introduced by Brandless works in comparison to other brands with well known logos?

Brandless’ philosophy can be enjoyed. We like simplicity, more and more often we pay attention to the ethical approach of companies to do business, we are fed up with hidden costs and we like smart shopping – we are pleased to buy good quality products at bargain, decent prices. If we add a transparent mobile platform (in the digital first trend), we are dealing with a project that can quickly reach the tastes of a modern customer looking for fresh, healthy products, preferably locally produced. It has also been repeatedly tested whether the platform will find recognition among customers. This is just one of the experiments conducted.

Small detail when finalizing purchases, making decision easier.

Brandless is, in my opinion, one of the best and most polished startups of recent years. It has a great idea, expressive missions, hits the tastes of a group of customers who for decades will be the majority of sales of goods and services in the world. Everything here is correct and I frankly support this project, thinking about who first in Poland will propose a similar service. I would be the first customer.

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