Few VC backed startups building consumer goods are focusing on distribution of those products into the larger retail marketplace.
All designed to help retailers make more money selling the consumer products business’ products (and in the case of goods sold in grocery stores to attempt in many cases to be as attractive or more attractive for retailers than those retailer’s house or generic alternatives).
Very tricky stuff – but if companies like Harry’s or The Honest Company really want to scale to take on the consumer goods giants they probably have to master the art of relationships with large retail channels.
It is possible that one or more startups will find a way to reach mass scale via a digital only direct channel – but most likely they will require leveraging the investments in time (and brand) of mass retailers to reach truly mass scale of sales.
From VC backed shaving companies, diapers, soaps, eyeglasses and more there is a new wave of ventured backed consumer products companies that have arisen to prominence in the past few years.
Many of these firms are raising vast amounts and seem to be doing quite well.