Repurpose built a successful brand in the eco-friendly disposable products market by strategically approaching major retailers and leveraging growing consumer demand for sustainable alternatives. This episode offers valuable lessons on how to overcome buyer skepticism and effectively position a premium-priced, purpose-driven brand against established, lower-cost competitors, making it a must-listen for DTC and retail brands aiming for market disruption.
Key takeaways
Initially accept lower margins to gain market share and achieve economies of scale, understanding that increased volume will eventually drive down costs.
Leverage external factors like media attention and public discourse on environmental issues to turn retailer skepticism into inbound interest.
Focus on building a distinct brand identity even in commodity categories to differentiate from traditional, less sustainable alternatives.
Prepare for a long sales cycle and persistent outreach when engaging major retailers, as proving product viability and consumer demand is crucial.
Emphasize the 'better-for-you' aspect of sustainable products to justify a slight price premium over conventional options, educating both retailers and end-consumers on the value.
Most people don't think about the brand behind their disposable plates, but Repurpose is trying to change that.
The company, which is now sold in major retailers like Kroger and Costco, makes eco-friendly disposable products like plates, cups napkins, trash bags and toilet paper. While its prices are competitive, they still are at a slight premium to foam and plastic players.
"It just felt like, why couldn't this be its own little category and brand that represented a whole kind of better-for-you disposable product?" said Repurpose co-founder and CEO Lauren Gropper.
Gropper joined the Modern Retail Podcast and spoke about the 14-year-old company's growth.
While Repurpose is in most major retailers today, it took a lot of work to convince buyers. "Any of the buyers that had any experience with it in the past [were] like, 'This doesn't work -- we've tried it, so don't even bother,' said Gropper.
But after multiple news headlines around plastic disposable products hurting wildlife, more retailers began to seek out better alternatives. "We went from being in the knocking-down-every-door business to the incoming-call business," she said.
Repurpose's growth has helped it figure out a sustainable business model. The idea from the get-go was to make products that could be competitive with the likes of Dixie. While the company had very slim margins at first, volume has helped Repurpose cut down on costs.
"In the early days, we just went in with a lower margin knowing we're going to make this up as time goes on," Gropper said.
Frequently asked about this episode
What does this episode say about dtc strategy?
Initially accept lower margins to gain market share and achieve economies of scale, understanding that increased volume will eventually drive down costs.
What does this episode say about retail & omnichannel?
Leverage external factors like media attention and public discourse on environmental issues to turn retailer skepticism into inbound interest.
What does this episode say about brand & content?
Focus on building a distinct brand identity even in commodity categories to differentiate from traditional, less sustainable alternatives.
What does this episode say about supply chain & operations?
Prepare for a long sales cycle and persistent outreach when engaging major retailers, as proving product viability and consumer demand is crucial.
What does this episode say about dtc strategy?
Emphasize the 'better-for-you' aspect of sustainable products to justify a slight price premium over conventional options, educating both retailers and end-consumers on the value.
