Today’s technology has transformed the shopping experience.
While most of us enjoy trying out our favorite department store clothes, we
also enjoy the ability to purchase specific and exclusive items through our
smartphones through the e-commerce app.
The nature of retail change has opened up huge opportunities
for small businesses over the last decade. According to new research,
"Charting Growth Journey: Product to Profit Business" GS1 is a
nonprofit, product recognition and standard company in the United States,
developing various strategies for highly successful small business growth. In
particular, small brands that understand the needs of retailers and seek expert
advice and services from outside partners are better equipped to take advantage
of today's "always open" shopping environment.
In today's fast-growing retail landscape, smaller brands are
finding opportunities to grow: they focus on their products, develop a complete
channel strategy, and partner with experts to accelerate success.
Focusing on the
product
Small business owners are driven by the passion to bring
their unique products to the market. According to the survey, 61 percent of
respondents cited consumer demand for personalized services and products as the
top trend. Almost (58 percent) estimate that changing customer habits - such as
where they shop (online or in-store) - will affect their brand growth.
Creating stories, brands and beliefs are critical. If not,
it's an expensive race, “said Steve Lange, co-founder of All Good, a line of
clean personal care products.
It is important to focus on customers and their needs, find
the right balance, and manage different business challenges, such as time and
resource shortages and study is a major concern for many brands.
Building a complete
channel strategy
Small businesses need to look beyond the immediate pressures of starting a small business to determine their location with the proper retail
channels for their products. These can be online marketplaces, national
retailers, local retailers, kiosks, craft fairs or their own stores or
websites. High-growth leaders (25 percent or more last year) know the
importance of channel mixing, pick up 3.1 channels on an average to sell their
products, and backward (who lost revenue in the last 12 months) use only 1.3
channel.
Proving loyalty to retailers is also a big barrier for
smaller brands. The survey found that 5% of leaders had a direct correlation to
the number of products sold on their online listings, such as providing full
product information (such as images, product resources, and more). In addition,
57 percent of these growth leaders say that the use of UPC on their product
list helps consumers find their products online more easily.
"Incomplete product information and UPCs show a lack of
experience with potential retailers. You need to understand that you need your
continuity from retailer to retailer," said Erik Elfstrum, founder and CEO
of Pureloft, an Ari-Natural Caffeine alternative drink.
Partnering with
professionals
Seeking outside business support was also identified as an
important growth factor among small brands. Such partnerships help them build a
more sustainable business model and offer opportunities for expansion. The
study found that more than half (55 percent) of high-growth leaders agree that
partnering with a retail broker or consultant has been critical to growing the
business. Specifically, 83 percent of small brands that leverage online
marketplaces and national retailers say partners (such as barcode services,
software providers, business consultants and more) improve their understanding
of product information and its impact on their business.
For help finding the right partners to support
growth, many small businesses have found credible options through the GS1 US
Solution Partner Program, a network of certified solution providers that
provide guidance and a range of services to support retailer requirements.
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