A number of shareholders have been asking about KIND Laundry Products. The common thread is the question of how the brand will be positioned in a competitive landscape.
Most fields are competitive. There is a school of thought that the competitive fields represent the best business opportunities because they reflect high demand. Also, in a competitive field, it is more feasible to find a good niche. We have always been realistic about the existing landscape in this sector. It is dominated by a few mainline brands that are good products, from terrific companies. It has been estimated that Tide represents over 40% of its category in the U.S., although interestingly, it is certainly not the least expensive. Such ranking statistics vary, and are always an approximation. Every single “normal” household, including single person households, has laundry to process in some way.
It is not the objective of Winning Brands to naively go up against existing mainline brands in their established core markets. Instead, we are interested in some very good niches that exist, as well as the supply of such products institutionally. For a currently small firm like Winning Brands, even modest success in some good niches can be attractive. The largest brands do not consider the entrepreneurial experiments of young brands to be their direct competition. The largest suppliers regard their peers as their competitors. The largest firms are not targeting niches below a certain size because of the minimum critical mass required by the largest companies to operate.
There are several niches that we have in mind. It would not be opportune to lay them all out in advance, however a core “value” runs through them; human factor sensitivity. There are many consumers, and businesses (like the hospitality sector) that are increasingly interested in products that are gentle to people, if those products can also do the cleaning job. As recently as Friday, I met with a woman whose father was in an elder care facility. She launders her father’s garments personally, rather than having them handled by the facility, because her father reacts to the ordinary “harsh” materials being used by that facility. There are millions of similar consumers in North America. The “gentle, yet strong” paradox is something that we are comfortable with as a characterization of our products, including KIND Laundry Products. Attached below is a flyer that sums up this approach.
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Institutional variations and packaging for KIND, such as for professional wet cleaning environments, military, etc will of course be made suitable for those settings. We will be hearing more about KIND in 2012 than before, as it is being gradually elevated to more visibility. As a practical matter, we were not previously in a position to hold large predictive inventories of all our core products simultaneously, however that will be changing in 2012.
