Dropps, an eco-friendly cleaning product company, successfully transitioned from DTC to mass retail by launching in Target. The episode highlights their strategy for competing with established brands, emphasizing product efficacy, unique sustainable packaging, and navigating the "green cleaning" category. This is a must-listen for DTC brands aiming to scale into major retail channels.
Key takeaways
To compete in mass retail, DTC brands must first ensure their product efficacy matches or exceeds established market leaders like Tide or Cascade.
Leverage unique, sustainable packaging (e.g., paperboard instead of plastic tubs) as a "billboard on shelf" to differentiate from competitors and attract eco-conscious consumers.
Strategically use online success (subscriber base, Amazon performance) and regional grocery partnerships as "proof points" for larger retail expansion.
Develop exclusive products for new retail partners (e.g., Target-exclusive pods) to incentivize partnerships and cater to specific market demands.
Proactively address consumer misconceptions about 'green' materials (like PVOH) with rigorous certifications and clear communication about biodegradability and biobased origins.
Cleaning company Dropps hit shelves in Target this week, hoping to capture market share in the competitive category by offering a "greener" alternative. And one of the first ways it's hoping to catch shoppers' eyes is with its paperboard, trapezoid-shaped container next to the plastic tubs of laundry and dish pods.
"It is paperboard within a sea of plastic," said CEO Alastair Dorward, "and the unique form and the shape really presents an excellent billboard on shelf."
Dorward joined the Modern Retail Podcast to talk about the company's expansion plans as Dropps made its Target debut online and in stores. The over-30-year-old company makes pods for dish and laundry that are USDA-Certified Biobased, Leaping Bunny Certified and wrapped in a biodegradable film.
The launch also includes a new 4-in-1 Plus Oxi Biobased Power Laundry Detergent Pod that's exclusive to Target and Dropps.com, as the company looks to compete with legacy brands that offer "tiered" pods for different uses.
Dorward said Dropps is looking to find a mass audience after nearly two decades of direct-to-consumer operations. The former CEO of Method, Dorward took the helm at Dropps about two years ago and worked to take the product from its DTC origins to mass retail.
The so-called "green cleaning" category is expected to grow as customers look for more non-toxic ingredients in product purchases. Nielsen IQ found that 45% of consumers want to buy products that have antibacterial properties, non-toxic ingredients and disinfectant abilities, for example.
What does this episode say about retail & omnichannel?
To compete in mass retail, DTC brands must first ensure their product efficacy matches or exceeds established market leaders like Tide or Cascade.
What does this episode say about dtc strategy?
Leverage unique, sustainable packaging (e.g., paperboard instead of plastic tubs) as a "billboard on shelf" to differentiate from competitors and attract eco-conscious consumers.
What does this episode say about product & merchandising?
Strategically use online success (subscriber base, Amazon performance) and regional grocery partnerships as "proof points" for larger retail expansion.
What does this episode say about brand & content?
Develop exclusive products for new retail partners (e.g., Target-exclusive pods) to incentivize partnerships and cater to specific market demands.
What does this episode say about retail & omnichannel?
Proactively address consumer misconceptions about 'green' materials (like PVOH) with rigorous certifications and clear communication about biodegradability and biobased origins.
