Download - CommerceHub Brand Insights 2017
COMMERCEHUB BRAND INSIGHTSHow Brand growth strategies impact Retailers
Consumers expect to find what they want
when they want it. Anytime. Anywhere.
What about Brands?
“The number of manufacturers
selling directly to consumers
is expected to grow 71% this
year to more than 40% of
all manufacturers.”
Source: Diorio, Stephen, How Leading Brands Are Winning The 'Direct-To-Customer' Conversation,
Forbes Insights, June 7, 2016
CommerceHub surveyed*
our network
of ~10,000 Brands and other suppliers.
TITLES OF RESPONDENTS RESPONSES
Manager 31%
Senior Director or Director 19%
EVP, SVP, VP 18%
C-Suite 17%
Other 15%
*Survey was sent to 17,889 people from approximately 9,900 companies on February 6 – 10, 2017. The survey received 454 responses.
Where Do Brands See
their Biggest Opportunities?
Q: Which of these are your biggest opportunities in the next 12 months?
A: Growing sales from my retailers – 67%; Selling product with new retail partners – 62%
Selling more with current Retail partners
Selling with new Retailer partners67% 62%
34% Selling to consumers on marketplaces
Q: Which of these are your biggest opportunities in the next 12 months? A: Succeeding in selling on marketplaces like Amazon, eBay, Walmart, and Jet.com – 34%
Selling to consumers on their own e-commerce sites 30%
Q: Which of these are your biggest opportunities in the next 12 months? A: Succeeding in selling on my own e-commerce site – 30%
How will Brands increase
sales with Retail partners?
Say increasing product assortment
with their Retail partners
Q: Which of these are your biggest
opportunities in the next 12 months? A:
Growing product assortment with my retailers
– 48%
48%
12%
CommerceHub Retailers
increased sales by…
Source: 2015-2016 CommerceHub internal data
10%For every
increase in unique
products sold
We estimate the average Retailer offers
only ~15% of a Brand’s full product catalog
Source: Based on input from CommerceHub Retail and Brand customers, 2015-2016
What about selling
direct to consumers?
59%
sell direct to consumers
Q: Do you currently sell your products directly to end consumers,
on your own e-commerce website? A: Yes – 59%
Of those who don’t but think they should
WORRY ABOUT
CHANNEL CONFLICT
Q: Why don’t you currently sell your products
directly to end consumers, on your own e-
commerce website?
A: Channel conflict (e.g., with retailers) – 49%
49%
What does this mean for
Retailers & Brands?
1. The top priority for Brands is to grow through their Retail partners
Retailers and Brands want the same thing…
Increased sales. Product assortment drives sales.
2. Brands want to work with new Retail partners
Brands will drive increased product assortment across new Retailers, too.
Creating a flywheel effect.
Increased sales.More Retailers. Greater product assortment.
3. Brands want to better control their presence on marketplaces
Brands will sell on marketplaces to gain control over their brand image and
pricing. The increased exposure will drive increased sales...
But also on their Retail channels.On marketplaces.
Brand strategies for
growth will drive growth
for Retailers, too.
COMMERCEHUB BRAND INSIGHTSHow Brand growth strategies impact Retailers