As explored in Rebranding Budget, part of our Industry Trend The Austerity Opportunity, the market for low-cost everyday goods is rampant, driven by stretched consumers demanding pocket-friendly consumables. With millennials embracing frugal attitudes (see Millennial Mums Feeding Families) and cash-savvy families making the most of their dollars (see Hispanic Families & Food), this level of retail is increasingly relevant and desirable.
Catering to this demand, San Francisco-based retailer Brandless has launched an online supermarket where all of its mainly organic and Fairtrade unbranded products retail at $3 each.
The company, which launched on July 11, keeps the cost of its food, beauty and cleaning products to a minimum by selling its brand-free products directly to the consumer, avoiding the additional costs of branding and design.
Delivery costs a flat fee of $9 or is free for orders over $72. It also offers a membership model costing $36 per month, which reduces the free delivery threshold to $48.
Brandless takes a charitable stance, donating a meal to Feeding America for each order placed and ensuring that it uses a high proportion of waste-free packaging. This sort of approach has become an expectation for ethically conscious consumers, as explored in Culinary Provocateurs.
Brandless' chief merchant Rachael Vegas told US publication USA Today: "We estimate the average person pays at least 40% more for products of comparable quality as ours, sometimes up to 370% more for beauty products like face cream. We're here to eliminate 'BrandTax™' once and for all."