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How the Power of Community and Connection is Reshaping Commerce

Contributed By Phil Chang, Retail Expert at Hubba, Inc.

As of late, there has been a lot of doom and gloom coverage harkening the death of retail. But every shakeup looks like death and destruction from afar. Hubba has taken a closer look and found that for every bankruptcy headline, there are thousands of unique retail business models being built by the people who are going to reshape the future of retail.

Today’s consumers are looking for unique shopping experiences. This new consumer is not only  changing where they buy but, perhaps more importantly, how they buy. They’re incredibly well informed, consuming information from all forms of media, at times doing hours of research before they buy. It’s never been easier for niche brands and retailers to break into the mainstream, inspiring new business models that are contributing to the growth of retail and fueling the success of commerce.

Long tail theory predicted today’s niche consumerism, and  recent whitepaper and infographic showcases the new opportunities in the next generation of commerce and the role community plays in growing today’s businesses. Millennials and GenZ lead the group of consumers that are changing the marketplace, they look to engage with brands before making purchase decisions and are almost immune to traditional ad format. In fact, 84% of millennials don’t trust traditional ads and 63% of report that online reviews influence what they buy.

All this has lead to a shift in the power dynamics of the retail world, one where independent companies are taking the reigns from heavyweights. As a result, small and medium sized brands and retailers are more empowered than ever to both lead with innovation and sell products based on consumer feedback — consider how non traditional sales methods like subscription boxes are estimated to generate $5 billion in annual sales, and pop-up stores generate $50 billion annually.

Community structure shifts the power to small and medium-sized business owners. The democratization of the retail industry is resulting in new roles for buyers, sellers, manufacturers and distributors. As shopping patterns change, to attract today’s fickle consumer base and stay relevant, retailers need to find new ways to engage and be part of the new retail equation one that considers influencers and brands.

Simply adding more assortment isn’t going to work. While assortment is on the rise, the number of packaged goods more than doubled over the past 10-15 years, shelves are shrinking and consumers are growing unsatisfied with the in-store selection. The most successful retailers today are curating an experience and a story. They are offering unique products, developed by independent brands, in their quest to offer the right product for the right customer at the right time through the right channel.

The need to differentiate and align with consumers values and aesthetics has never been more important. At Hubba, we see thousands of new products launched each month as well as a 50% growth in retailers reaching out to new brands on Hubba’s digital network. Technology gives brands greater flexibility than they had in years past, facilitating retailers ability to shift their buying schedule to one that is more fluid to keep on trend with consumers.

Retail is changing, it is no longer just an industry it is a commerce community, one generating many new business opportunities.

On Hubba this year, we have seen partnership connections increase across the board: 47% of brands sought out other brands to collaborate, co-market or share industry knowledge, 37% of influencers looked to engage with new brands to work with regularly; and, the number that is growing at the fastest pace, the number of retailers seeking new brands with niche products has doubled. Tuning into important stories is the first step to finding relevant business opportunities – telling a product story that fits into the consumer’s story will result in purchases 55% of the time.

Reflecting the values that are most important to the new consumer, and engaging the commerce community at all levels of business are all things retailers can do to stay ahead of the curve and remain relevant through the evolution to the next generation of commerce. The democratization of retail means a shakeup that will most definitely have its winners and losers. Retail will change but it certainly won’t die.

Phil Chang is the Industry Lead and Retail Expert at Hubba and is responsible for uncovering emerging trends and insights that impact businesses in engaged in commerce. He brings 20 years of experience in working with retailers and brands of all sizes across North America. In his role at Hubba, Phil helps both brands and retailers adapt the the new reality of retail and next generation of commerce. Phil is a frequent speaker at industry events in Canada and the US, across multiple verticals, and is a featured writer in trade publications such RetailTouchPoints, PetProductNews, Bikebiz and others.


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