Groceryshop 2022: Thrive Market CEO Talks Private Label, Perks of Membership Model
Nick Green, co-founder and CEO of Thrive Market, talked about the online membership-based retailer’s private label growth, its pricing model, sustainability and more during a keynote interview at Groceryshop 2022.
Interviewed by CNBC business reporter Melissa Repko, Green said that Thrive Market’s mission as a company to sell accessible, unique, healthy products translated to a private label strategy when the company became large enough to venture into selling its own brand products.
“We launched about a half dozen products initially, every one of them was 'upleveling,' innovating, doing something different,” he said. “Fast forward to today and we have over 500 Thrive Market branded products on the site. They’re the best selling, most re-ordered products on the site, and last year we did over $100 million in sales just from the Thrive Market brand."
Green added that offering a curated assortment of private label products is important for keeping Thrive's portfolio to a high standard, as well as offering quality prices for members of the retailer. Founded in 2015, Thrive Market’s private label assortment now spans wine, supplements, frozen food, prepared meals, home products and more.
“We start by hyper-curating the catalog. We offer an order of magnitude fewer SKUs than you’d find at a retailer,” he said. “We have a very high bar for letting new products onto the site, but we also work really collaboratively with new brands. About half of the products on Thrive Market, even under the Thrive Market brand, are launching for the first time [on Thrive Market]. We can use our data to look at not only what people are buying right now, but what they want or can’t find, and we’ll launch products or brands that take some risk that other retailers might not be able to take because they don’t have that data."