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Differentiation may be one of Attn: Grace’s largest hurdles and a pain point that investors should take into consideration. For one, even with patents, it is hard to stay defensible in the incontinence market. Many large incumbents in the personal care space, from diapers to tampons, have noticed a shift in market sentiment toward natural products and responded with new product lines or acquisitions. Examples include Pampers Pure and Tampax Pure Cotton.
This market is also crowded with large incumbents that are household names, including Depend and Always. Smaller companies like Rael are also aiming to differentiate with all natural, cotton-based products and reusable incontinence pads. The Honey Pot Company, known for all-natural period products and feminine care, has also released incontinence products.
Attn: Grace’s products do stand out from these natural alternatives. Its products are not cotton based. Attn: Grace’s products are sustainably created with a polyethylene made from sugar cane waste. Management likens this to the difference between wearing a synthetic shirt as opposed to a cotton shirt when exercising, a major distinction in comfortability.
When it comes to price, Attn: Grace falls just above big brand alternatives and just below boutique companies. Attn: Grace sells 14 incontinence briefs for $16.50 or $14.85 with a subscription, with unit prices of $1.18 and $1.06, respectively. A 19-count box of Depend incontinence underwear can be purchased at Walmart for $13.72, coming out to a unit price of $0.72. A 28-count pack of Attn: Grace’s highest-absorption incontinence pad costs $16 without a subscription and $14.40 with one, with unit prices at $0.57 and $0.51. The Honey Pot Company’s highest-absorption pads stand at $11.99 for a pack of 16, with a unit price of $0.75. Rael offers a 30-pack for a one-time charge of $22 or $19.80 with a subscription, making for $0.73 and $0.66 unit prices. These are minor differences in price, making Attn: Grace’s product suite in line with the market overall. That said, the products are not differentiated from a price standpoint, as none of the products are significantly cheaper than either name brand or boutique alternatives.
Investors should note that prices on Attn: Grace’s Amazon storefront are marked up to compensate for Amazon’s selling fees. The $16 pack of the highest-absorption incontinence pads available on the Attn: Grace site goes for $24.97 on Amazon. This pricing puts the products on the higher end of the spectrum, though not by much. Management reports that once products are available in Target and Walmart, prices will reflect what is seen on the Attn: Grace site, not those on Amazon.
Finally, Attn: Grace’s business model of offering discounts through subscriptions is not particularly unique, as most competitors offer discounted subscription models. Overall, Attn: Grace’s product stands out, but its prices don’t.
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