D2C eco-homecare subscription startup

Progress Check-in Report

MSIN0091 Retail and Consumer
Entrepreneurship
2023-2024
Early days
Smol was founded in 2018 by ex-Unilever executives Paula Quazi and Nick Green with the
goal of providing customers with a better alternative for their homecare needs.
Something that is sustainable, affordable and effective. (Tucker, 2021).

Key Challenges Why start with D2C?

The founders deduced that customers prioritize
three factors when making a purchasing Smol initially launched themselves as a D2C
decision. Quazi (2020) was Inspired by Allbirds subscription due to their commitment to delivering
whereby there must be a primary focus on convenience.
product performance to ultimately curate a
culture of sustainability. To combat the mundane experience of “wandering
1. Effectiveness – prior to launch, the down soulless supermarket cleaning aisles full of
founders spent two years (while working plastic” (Smol, 2023), Smol was inspired by the
full time jobs) working on formulations and Dollar Shave Club to deliver cleaning products
testing before being third-party verified to through the mailbox (Quazi, 2020).
have better cleaning performance than
existing brands. Another reason is because the market is currently
2. Cost – existing eco-friendly brands were dominated by three big players (Unilever, Procter
more expensive and only target niche and Gamble, and Reckitt Benckiser), and it was
customers important to firstly build trust with consumers that
3. Sustainability – through reworking every lead to word-of-mouth recommendations
step of the production process, Smol (Campbell, 2024).
creates a product that has no plastic, less
chemicals and is carbon cutting (Smol, This strategy is proving effective as Smol now have
2024). over 25,000 five star reviews on Feefo (Smol, 2023)
International strategy
Critique
• Smol is a UK based company, manufacturing out of a rented
u Since Smol is
UK production warehouse in Tonbridge, Kent. Initially, Smol only
offered laundry capsules, and required feedback from early local
adopters to refine the product.
manufactured in the UK,
the additional carbon
emissions incurred in
international shipping
UK, • Smol then entered a partnership with Royal Mail,
which enabled delivery to all the UK as well as
negatively contributes to
its sustainable image.
Guernsey, Channel Islands. The rationale behind this is that Royal
Mail visits most households in the UK everyday This is backed up by
Jersey anyways and reduces carbon emissions. multiple Trustpilot
reviews from Germany
commenting that “it is
UK, Guernsey, • Later expansion into Germany through the
establishment of a local logistics centre and sent from abroad and is
Jersey, entering a relationship with Deutsche Post.
This is to minimise carbon emissions by
taking advantage of existing journeys.
therefore not nearly as
environmentally friendly
Germany (Smol, 2024). as it appears” - Helena
(Trustpilot, 2024)
• As part of their expansion
UK, Guernsey, strategy, Smol is currently actively
hiring for French speaking
Jersey, Germany, employees. This is crucial to their
customer acquisition strategy

France? Netherlands?
which is focused on a two-way
relationship based on trust and
listening.
 Smol offers a subscription service for a range of high-quality sustainable
Core Business model today : cleaning products including laundry, dishwasher, washing up liquid,
fabric conditioner and multi purpose spray.

• Investment and • Product development • Sustainable and eco-friendly • Customer service via • Eco-conscious
guidance from • Manufacturing and cleaning products Zendesk consumers
multiple VCs packaging • Convenient subscription service • Active social media • Busy professionals
• Suranga • Marketing and that personalizes delivery presence (short form • Customers interested
Chandratillake (GP at customer acquisition frequency according to individual media) in convenience and
Balderton Capital) is a • Subscription usage. • Educational content subscription services.
Board Member of management • High performance cleaning products and resources on
Smol, assisting with • Customer service and at similar costs to existing sustainability
technology and support. traditional retail store brands.
marketing efforts.
• Ingredient suppliers
• Logistics and delivery
partners (Royal Mail) • Manufacturing and
• Packaging production facilities • Online website
manufacturers • Intellectual property for • Social media
product formulations marketing
• Sustainability
organizations and • Supply chain for • Partnerships with
influencers. sustainable ingredients online retailers and
and packaging eco-friendly
• Website Marketing businesses
materials

• Manufacturing and packaging • Raw materials • Subscription

• Research and Development • Wages • Partnerships and collaborations
• Marketing and advertising costs • Rent • VC investments
Customer Experience
Customer Journey Awareness Consideration Decision Service Loyalty
Actions Hear from friends or see Compare and evaluate Create account, customize Email for order help Share experience
online ads alternatives order, payment

Touchpoint Word of mouth, Social Smol website, online reviews, Smol website Email contact Word of mouth, social
Media word of mouth powered by Zendesk media

Customer Annoyed- reminded Excited- finally something that Stoked – a convenient Frustrated – ”I don’t Happy – to send feedback
Experience about mundane laundry makes laundry exciting. solution to buying laundry know who to and tell friends about
that just happens to be eco- contact” how laundry is now
friendly exciting

Pain Points Not enough people Customer education on Need to manually create an Only point of Incentivizing the sharing
reached product effectiveness account contact is email, of Smol
around 1 working
day response time.

Solutions/recommen Investment into Clear performance comparison Option to sign-in with Expand support Easy to use affiliate links
dation marketing tables Google, Facebook, Apple team to facilitate for rewards.
accounts etc. calls, live messaging
etc.

Impact of customer feedback (Quazi, 2020)

Initially, Smol laundry pods were delivered in recycled clamshell plastic packaging. Plastic was not the ideal material in terms of sustainability,
but regulations required laundry detergent packaging to be child-impeding, and it was the most sustainable option available.

However, following repeated feedback from early adopters, who mentioned how it felt counterintuitive to be opening a plastic package from an
ostensibly green company. As such, one of the founders spent over a year to develop and innovate the world’s first plastic-free package with
patented child-impeding mechanism. The FSC approved cardboard packaging is still used today.
Past Innovations

Big flashy pods Small concentrated pod

• Existing laundry pods were big and • Concentrated formulation enables similar
unconcentrated to appear more effective cleaning effectiveness at a smaller package
• Separated sections to enable “3in1” slogan (Quazi, 2020) “Household cleaning is a
• All components premixed to minimise impact
great example of a product
category where giant
incumbents have ignored
potential innovation.” -
Suranga Chandratillake, GP
Single-use (virgin) plastic packaging Sustainable Plastic-free packaging at Balderton Capital, board
• Large, virgin plastic packaging is used as raw • Made from cardboard coming from FSC member at Smol.
materials is very cheap and wanted to take up sources
more shelf real-estate for marketing • Patented child-lock technology (developed
• Non-recyclable inhouse)
• Recyclable

Current innovation efforts

• Expansion of product line to include other home care products including hand soap, bathroom cleaners, hand sanitizers, air fresheners, floor
cleaners etc.
• Upgrade of current product offerings to facilitate more personalization choices e.g different scents, different run cycles, etc.
Recommendations
Expand product line to enable Transition to supermarket retail
greater personalization (B2B2C)

u In the laundry detergent market, fragrances/scents play

a key role in the purchasing decision (Puri, 2022).
u There is currently a global megatrend of wellbeing and
“self-care” (Euromonitor, 2022), and scents are an
essential component of this trend. E.g candles and
essential oils.
u Fragrances enable the consumer to personalize the
“chore” of laundry as it instigates an emotional
connection, enabling customers to better reflect their
style (Martin, 2019).
u This view is echoed by customers on Trustpilot, as the
scent of the detergent is a leading cause for subscription
cancellations.
u Smol is recommended to test various scents by offering
customers free “scent booster” capsules before Historically, the vast majority (>80%) of sales in Laundry Care in the UK is sold
integrating scent options in their product line. offline and is not predicted to shift in the foreseeable future(Statista, 2023).
Furthermore, contemporary consumers are prone to suffering from subscription
fatigue, feeling overwhelmed by multiple subscriptions to manage (Fitzgerald,
2023). Smol is recommended to invest in its manufacturing capabilities to prepare
for battle with the current giants.
References
Campbell, N. (2024). Interviewed by Sorcha O’Boyle, 10 Jan, London.
Euromonitor (2022) Top 10 global consumer trends 2022: Euromonitor, Euromonitor International. Available at:
[Link]
image&utm_medium=website&utm_source=homepage (Accessed: 20 February 2024).
Fitzgerald, J. (2023) With subscription fatigue setting in, companies need to think hard about fees, HBS Working Knowledge. Available at:
[Link] (Accessed: 21 February 2024).
Martin, B.D. (2019) Laundry logic: Fueling purchase intent through Fragrance & Lifestyle Trends, Arylessence. Available at:
[Link] (Accessed: 20 February 2024).
Puri, S. (2022) Attribute analysis on scents in automatic laundry detergents..., Euromonitor. Available at:
[Link] (Accessed: 20 February 2024).
Quazi, P. (2020). Interviewed by Sarah Henson, 25 May, London.
Smol (2023) 5 great reasons to start a smol subscription, smol products. Available at: [Link]
reasons-to-start-a-smol-subscription-1 (Accessed: 20 February 2024).
Smol (2024) A Smol Story , Smol Products. Available at: [Link] (Accessed: 19 February 2024).
Smol (2024) Smol in Germany FAQs, smol products. Available at: [Link] (Accessed: 20 February 2024).
Statista (2023) Laundry care - united kingdom: Statista market forecast, Statista. Available at:
[Link] (Accessed: 20 February 2024).
Trustpilot (2024) Smol is rated ‘excellent’ with 4.3 / 5 on Trustpilot, Trustpilot. Available at:
[Link] (Accessed: 20 February 2024).
Tucker, C. (2021) British startup Smol, an Eco Homecare brand, raises €27.9 million to continue expanding in New Markets: EU-Startups, EU-
Startups. Available at: [Link]
expanding-in-new-markets/ (Accessed: 19 February 2024).