New Startup Could Devastate the TV Advertising Industry

 

For decades, we grew up knowing that brands like Crest toothpaste will better whiten your teeth, and that only true athletes wear Nike gear.  But, if this new startup- Brandless- catches on in the consumer marketplace, this could lead to some potentially grave news in the TV advertising industry. 

Brandless pitches itself as the "Procter & Gamble for millennials", offering a host of essential consumer products for just $3.  That's right, every item on the website is just $3, while some cheaper items are bundled to reach that price.  Brandless sells a variety of consumer products ranging from dish soap and cleaning supplies to gluten free mac & cheese.  Instead of having the packaging decorated with big logos and brand names, Brandless aims to only list the actual attributes of the product on the label...that's it.  Simply put by the founder of Brandless, the idea is to "democratize access to awesome stuff at really fair and affordable pricing", says Tina Sharkey.  In a nutshell Brandless' true aim is simplicity.


What this essentially comes down to is whether or not a new generation of consumers begins to reject big brand names simply for convenience and affordability.  As mentioned in my most recent newsletter, millennials and other demographics value price and convenience more than ever, which could contribute to potential downfall in the TV advertising business.

Obviously this is still a big if at this point.  Consumers love brands because of our immense trust in them and what they actually say about us as individuals.  Personally I don't see the vision of the Brandless brand in the sense that it will crush the advertising world.  However, I am interested to see how this brand penetrates and influences the consumer market in years to come.  I think it's an interesting idea that simplifies the marketplace while catering to consumers demand for affordable and easily accessible goods.  But, its hard for me at this stage, to see it take a big hit to the TV advertising industry.