Disintermediation = Bankruptcy
To much fanfare, Brandless launched this week armed with $35mm in fresh Series B funding. It sells household items for a flat $3 which, according to the company, reflects the elimination of a "brand tax." Nice trick. Seems strikingly similar to other stuff we've seen of late whether its Harry's or Warby Parker, aka consumer product goods that have gone after Gillette and Luxottica's hefty "goodwill" margins. And, yet, STILL have massive brands. Dollar Shave Club basically sold purely because it was a "lifestyle brand." So, it'll be interesting to see whether this works. If it does, though, it could mean more pressure on grocers and, perhaps, dollar stores...? Does disintermediation always mean bankruptcy? We'll see.