We believe that the consumer products world is changing. The internet has enabled niche audiences to raise their hands and say “Make something specifically for me.” The rise of ecommerce and contract manufacturing has enabled a generation of entrepreneurs to create custom-tailored products for these enthusiast communities.
Consumer products used to be focus-grouped, manufactured at scale and promoted with mass-market advertising. In the ecommerce age, customers demand products that are in tune with their unique tastes and preferences — and for the first time, brands have the the tools to deliver. Modern consumer products brands are asset-light, iterate quickly and reach their customers with hyper-targeted digital advertising.
The internet has also enabled consumer products brands to build relationships directly with their customers. This includes, but goes far beyond, selling direct-to-consumer online. Customers provide real-time reviews and social media feedback, brands can recommend specific products based on individualized data and both can connect without any retail intermediaries.
While it’s never been easier to start a consumer products brand, it’s also never required such a broad skill set to scale one. A small brand must master a battery of tools — ecommerce, payment processing, Facebook ads, Google Adwords, search engine optimization, social media, Amazon, logistics and shipping, contract manufacturing, and growth financing — to name a few. Many brands get started and scale quickly initially, but soon find that scaling beyond their initial traction requires skills and resources beyond their reach. The grind is tough — founders often get burnt out, bored, need liquidity or simply are ready to move onto something else.
Elements Brands exists as a long-term home for these niche brands. We are a blend between a private equity fund and a consumer products company. We acquire brands with long-term potential and provide the platform and resources they need to grow. Once we buy a brand, we never plan to sell it. We believe we can create enormous value by aggregating and operating small brands with a long-term growth mindset.