Why pay for the brand?

Paul Allen Business reporter allenp@jamaicaobserver.com

Sunday, January 22, 2012

With no distinguishing features or telltale signs of activity, the industrial complex that houses No Brand Chemicals, and several other businesses, could easily go unnoticed on along Marcus Garvey Drive.

The entrance is small, opening into a room with an unknown purpose and having the unmistakable scent of something soapy. It leads to an office that also smells like soap, barely masking the scent of a mosquito coil slowly burning in the corner.

"I found that there was a need in Jamaica for a discount model or a discounted brand. But even when you compare them to locally made products they're almost the same quality just that one is so much more expensive," said Jason Dear, the managing director.

It was this focus on quality rather than flashy packaging that influenced the business model that Dear has decided to follow. No Brand Chemicals is the second nominee in the Observer's start-up programme.

He stops occasionally to consult with Gregory Pearce, his business associate, ensuring that he isn't revealing "trade secrets".

"No Brand is supposed to connote a discount brand. You're not paying for a brand's name; you're paying for the quality of a product. The way we keep that model going is to innovate on the packaging, branding and such," he said.

"A lot of our customers will bring others to the brand. We give them samples to try and if it's something that they like we will then deliver to them directly.

"There's too much red tape. Whether it's in doing taxes or registering your business it's too much. The start-up was really difficult but once you get the ball rolling it's a little easier," said Dear.

Large containers of cleaning agents yet to be packaged and labelled are spread throughout a large room adjoining the office. There are piles of already packaged items being loaded for a patiently waiting distributor.

"It has been doing very well. It opened officially in July of last year. We're close to breaking even after six, seven months. We have over 200 customers including distributors."

No Brand has recently expanded its distribution lines to include household bleach and fabric softener in sachets. The bag juice-like packaging retails for between $10 and $15.

The company has already outgrown its current location and is now hoping to be able to move to a larger space. There are also plans to expand the products offered once No Brand "masters where we are now."

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GCT to go down, white rum prices going up

Why pay for the brand?