Press Release (ePRNews.com) - CHICAGO - Jun 16, 2017 - Store retail is a traditional practice for B2C companies with non-digital products. However, getting a product in a retail outlet may cause more problems than generating profits and brand awareness, our consultants warn. Most small businesses do not anticipate complexities and costs associated with retail that might, in fact, hinder branding efforts.
Retail should not be considered the only way to scale small businesses. Whether retail is suitable for the product in the modern tech-driven market largely depends on the nature of the product. While an established brand like Pepsi thrives in retail, other brands, like LSTN headphones, have thrived outside the retail stores.
Retail can go seriously wrong when small businesses try to sell their products in ill-suited stores. LSTN, a premium noise-cancelling headphone brand, tried to sell the product at Whole Foods, a retail chain that has never sold headphones before. After failures at Best Buy, an electronics retail chain, and Nordstrom, a luxury store chain, LSTN founders moved the product online. Following partnerships with music brands like Spotify, LSTN finally found its footing.
LSTN is a remarkable example of how to succeed in the modern market. Classic marketing tactics claim that brands find the most success in retail chains. But selling in retail involves various fees, expenses for promotions like displays, costs of print advertising, and so on. In addition, selling in retail stores require spending enormous amounts of time trying to get meetings with corporate bosses. Selling in retail also demands that products be sold in expensive packaging, with more money spent on offline marketing tactics such as showroom exhibitions and direct marketing calls.
Such expenses are too much for many small businesses to bear, especially if the companies are just rolling out a product. It’s simply not financially feasible for newer products to compete with established brands in retail outlets. Retail selling could also mute branding efforts. LSTN, for example, initially wanted its customers to know that each purchase results in providing hearing aids via a charity. This important branding message could not be communicated effectively when selling at retail outlets.
Where brands like LSTN find real success is online. Consumers are willing to consider non-established brands when shopping on websites. Also, digital markets are more lucrative for finding niche audiences than retail outlets. Companies have the benefit of quickly rolling out a focused digital marketing strategy online. There will be no time wasted meeting executives and planning costly print advertising campaigns.
Global Resources consultants, therefore, advise small business brands to recognize that the the currently flailing retail market may not be the best strategy and should consider going digital directly. Companies that want to test online prospects of a product can benefit from Global Resources Reviews (https://twitter.com/gradvisers), which analyze financials, scaling prospects, and future profitability of small and medium-size businesses.
About Global Resources:
Global Resources LLC is a general management consulting firm located in Illinois. We specialize in providing consultation and business development services for small to medium-size businesses in North America. Our consultants help companies grow and scale, maintain positive cash flow, remain productive, and cut back on waste. Businesses can obtain comprehensive reviews from Global Resources to improve in-house practices.
Contact: Global Resources, 800-531-7100