Why is Kazidomi developing its own brand?

 

Why is Kazidomi developing its own brand?

Time changes! 

While some industries have undergone tremendous changes and have seen their landscape evolve at a fast pace, some have kept a somewhat constant outlook over the past years. 

More than a century ago, the first supermarkets opened their doors to the public with a relatively simple concept: clients would come in, shop in different arrays of products, and finally go through a cashier to pay and leave. While some small changes have been happening in the industry (think self-checkout, etc.), the concept is still very much the same about 150 years later. 

 

However, the retail industry is finally at a point of disruption, at the crossroad of eCommerce.

  

Kazidomi is now launching its own brand of products. Why is the membership-based startup going into this new area instead of keeping its focus? 

As opposed to many other companies, Kazidomi is a mission-based platform that was created to make healthy products affordable. This is why Kazidomi launched its membership, to help people access the best products at the lowest prices. The first focus of Kazidomi has been to increase its members base to reach minimum volumes. It grew with a monthly double-digit growth during the two first years following its inception. Now that Kazidomi is reaching a critical mass of customers, other aspects have been key for its development: service, product catalog, logistics processes, etc. As a result, tremendous work was put in in order to incrementally increase the quality of the experience

 

Today, Kazidomi is offering its products all over Europe to thousands of happy customers, therefore accumulating useful data about best sellers and customer preferences while building market knowledge and expertise. The increase in volumes also helped Kazidomi to systematically reduce the prices of its products as it grew. 

 

Kazidomi now faced a new challenge, the prices of some products simply can’t be lowered further because of the many intermediaries in the value chain. There is indeed a clear issue with the value chain in the organic market in Europe today. Producers sell to brands, brands then sell to wholesalers, wholesalers sell to stores and stores finally send to consumers. Just think about it, every step of this value chain is an increase in price for the customers with little value added for them. Kazidomi decided to tackle the issue by avoiding all these intermediaries and work directly with the local producers

 

The first obvious advantage is the lower cost, that enables Kazidomi to offer unrivaled prices on its private label products. The second is the control on the value chain, Kazidomi can not only select the producers it wants to work with (typically small family business, with strong ethical standards and passion for the products) but it can also impact the recipes to increase the product quality. The third consequence is the brand value for Kazidomi of building a more coherent and stronger ecosystem in the organic market than just playing an intermediary role. 

 

The first range was the coconut products: oil, sugar, milk, and flour. It was launched in summer 2018 as a first test that ended up being extremely successful. As a result, Kazidomi has now launched a full range of 11 tomato-based products (sauces and condiments), 6 pestos and tapenades, and 20 different types of pasta

 

This type of development typically takes up to 1 year for a traditional retailer, while Kazidomi was able to develop these in about 6-month time. All these products are now among the best-sellers of Kazidomi. 

 

Moreover, the product design work and the identity Kazidomi developed is of exceptional quality. Inspired by its young and fun identity, it has chosen a simple, yet classy design that includes a funny quote on every product. 

 

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