TiMiT entered a large and fiercely competitive consumer packaged goods $($CPG$)$ industry

under attack. The low$-$price, private$-$label store brands of retailers appeal to consumers

living in a recessionary environment. Retailers have been squeezing the margins they pay

to $CPG$ companies so they can offer customers the lowest price on national brands. Quirky

startups are appealing to consumers' increasing desire to explore small, niche, Australian

brands. Online retailers, particularly Amazon, are interested heavily to uncover viable digital

distribution channels for national and international brands and are actively testing private$-$

label brands of its own.

Value Proposition

TiMiT produces its own line of products by working directly with dozens of contract

manufacturers to keep costs low and quality high. The founders were particularly motivated

by helping customers shop with their personal values in mind. TiMiT claimed that its

products are made under the highest standards of safety, quality, and social ethics such as

Global Food Safety or Good Manufacturing Practices. At the company's launch, an

assortment of $200$ non$-$perishable food $($e$.$g$.,$ snack & supplement$),$ personal care $($e$.$g$.,$

shampoo$),$ and household goods was available for sale. According to the founder, TiMiT is

about limiting the choice by curating the "just what matters".

By selling direct to consumers and using digital marketing to attract customers, TiMiT hopes

to eliminate two costs faced by national brands: $(1)$ the retailer margins that CPG firms pay

to retailers to stock and sell their products, which could run between $15\%-50\%$ of the retail

price, and $(2)$ the advertising investments CPG firms make to build their brand equity and

drive sales, which could range from $5\%-20\%$ of their net sales. At TiMiT, everything is

"Brand$-$Tax$-$free", which means it has stripped out all excess costs.