According to a 2018 study by Nielsen, 80 percent of new consumer packaged goods companies fail in their first year. And with consumers abandoning traditional brick-and-mortar retail during pandemic loyalty to brands has also seen declining with CPG companies losing market share.
The latest venture from Kim Perell, former tech chief executive officer and top angel investor, and James Brennan, cofounder of Suja Juice and Kopari Beauty, 100.co, aims to tackle these challenges head-on. The artificial intelligence-powered company will reinvent the product creation and go-to-market processes that have become standard in the consumer goods industry — already reporting an accelerated new product development by more than 30 percent.
The company’s overarching mission Perell and Brennan told WWD is to disrupt the CPG market with purpose-driven products, co-created with the world’s most influential founders. “We are now in 2021, yet most CPGs are still using outdated market research, advertising, distribution and selling techniques,” Perell said. “These approaches are slow, and they struggle to keep pace with the digital-first and social media-savvy consumer. Our platform combines powerful data with the right influential partnerships, to give us the recipe to build brands with a purpose that we know consumers want and need today.”
Notably, Perell acknowledged the ongoing changes in consumer behavior amid the pandemic, saying it is “important to pay close attention to online sales reports and social media shopping as consumers are using these platforms to browse brands and make new purchases more than prior to the pandemic.”
“With insights from digital-first consumers and a direct-to-consumer e-commerce distribution, we are building brands that are digitally native, authentic, and meet the needs of today’s consumers,” Perell said. “If we could predict 10 years from now, we would be a successful billion-dollar company that brings the world innovative products, marketed by influential people, and powered by disruptive technology.”
CLAIRE, an AI platform that analyzes tens of thousands of data points and suggests market viability, product attributes and creative decisions before a product investment is made, is at the center of the 100.co. Put simply, Perell and Brennan told WWD, CLAIRE can “help inform the brand development process more precisely and significantly reduce the failure rate of new brands.”
“Even reducing the traditional eighty percent failure rate by 10 percent would yield massive results,” Perell said. “CLAIRE is bringing new brands to life in months versus years. Data can help predict product needs and market viability, as well as influence product attributes and creative decisions even before a product investment is made. If you know what consumers want and where they are going to buy it, you can launch a brand more successfully than relying simply on market research, distribution and selling techniques, which is what most CPGs are still doing today. Additionally, data-driven insights are the best way to keep pace with the digital-first and social media-savvy consumers who are a particularly important demographic for a successful brand launch.”
In working with new brands Perell and Brennan said they work closely with the cofounding celebrities in the innovation process with 100.co in developing products and driving consumer engagement.
“All cofounding celebrities have a purpose-driven mind-set, authentic story to share and a commitment to giving back, which is integrated into the business model from Day One,” Perell said. “CLAIRE then uses AI and big data to predict product-market fit and reduce risk by aggregating social media activity, SKU, which provide movement of inventories, current consumer demand and trends as well as attributes such as accepted pricing for target audiences.”
And by moving from reliance on focus groups and in-market testing to real-time audience insights, Perell and Brennan expect new product development to occur in weeks versus months, while ensuring the beliefs and principles of consumers are considered before a product is created — a process they say is crucial to note as traditional CPG companies usually manage this process in quarters.
Moreover, a key component for 100.co, Perell and Brennan told WWD, will be working with brands that are purpose-driven, leveraging AI and data in the brand creation process but believing strongly that launching a successful brand continues to be a matter of connecting with consumers by telling a powerful story.
“This is so important to me as an investor and most importantly as a mother to my four young children,” Perell said. “I look for brands that genuinely care about something bigger than the products they sell and how they will impact the world in years to come. Purpose and giving back to local and global communities are at the core of 100.co, and these beliefs have been integrated into our business model from Day One. We know it’s a smart business strategy to create brands out of the purpose-driven, authentic lifestyles of our brands’ respective influencers. The world has changed and so have consumers.”
100.co has two upcoming consumer brands launching in 2021 and 2022. The first brand will partner with Winnie Harlow to develop and launch a wellness venture in late 2021.
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