The power once held by the strong supply chain has shifted to the marketers, to the people who tell the stories. Traditional retailers are losing their influence and the reigns are being taken over by independent niche brands.
TORONTO, ONTARIO (PRWEB) May 08, 2017
Hubba, the largest commerce community for the most forward-thinking buyers and creative brands to grow their business, released a whitepaper and infographic that showcases the new opportunities for next-generation of retail.
Recent speculation of the demise of retail misreads the signals of the current shake up in the industry. For every bankruptcy and store closure headline, there are thousands of unique brands, retailers launching their businesses through new business models. Pop-Up stores alone are estimated to have contributed $50 billion to total annual U.S. sales, and subscription boxes are estimated at generating $5 billion in annual revenue, growing at a rate of 200% per year.
“The long tail theory predicted the power of niche consumerism that is reshaping the retail industry,” said Ben Zifkin, CEO founder of Hubba.”The power once held by the strong supply chain has shifted to the marketers, to the people who tell the stories. Traditional retailers are losing their influence and the reigns are being taken over by independent niche brands.”
Hubba’s report, “The Democratization of Retail: How the Power of Community and Connection is Reshaping Commerce,” illustrates how the shift from a traditional and formulaic industry to one whose structure is more akin to an interconnected community, creates new opportunities for companies to grow their business. Just over the last year, we have seen a 50% increase in retailers reaching out to new brands on the Hubba network.
There are more entrants, more people can do business, and there are more business connections and opportunities between independent brands and retailers than ever before. The number of products on Hubba has increased 150% with an average of thousands of new products being listed each month. Just this year there has been a 40% increase in the number of retail buyers specifically searching for niche or unique products from independent brands to stock their shelves.
Community structure in commerce shifts power from traditional heavyweights to small and medium-sized business owners. Telling the story of the product that aligns with the consumer’s values will often result in purchase 55% of the time, and 65% of brands say they find a direct correlation between experiential marketing and increased sales. The need to differentiate and connect with consumer has never been more important.