Everyone’s talking about micro. Micro poodles (cute), micro plastics (bad), and now there’s a new micro in town… the microbrand. There is an upsurge of microbrands on the market due to the value that they bring to the end user. One of the key selling points of microbrands is that they are focused on design and affordability. For the consumer, this means that they get to obtain some of the finest products without paying top dollar for them. Cha-Ching!
Microbrands Causing Macro Disruption
Due to their small size, microbrands businesses are better equipped to deliver customer-focused products and services than the big players. In an article on MedallionRetail, Dona Peters posits that “consumers demand what’s unique and special.” Therefore, one would be right to surmise that these companies achieve stellar success because of their ability to meet customer demand and expectations better than the top organizations. Their success is little surprise given the proven ability of small businesses to provide customers with immediate attention and satisfaction that were previously, only offered by brick and mortar stores.
New Platforms, New Possibilities
This explains the growing interest of entrepreneurs in the microbranding industry. The growth of the internet has created a new industrial revolution of sorts, making it possible for anyone with a good product idea to achieve success. Entrepreneurs have successfully harnessed internet technologies, thanks to sites like Etsy and Kickstarter, which allow businesses to tailor their products and target niche markets directly.
Crowdfunding site Kickstarter lets entrepreneurs tailor online products to the target audience by introducing a product idea to the marketplace. Then they ask the audience to fund the production. Beyond just buying a product, Kickstarter gives consumers a chance to buy-in on a company. These direct interactions between the consumer and retailer serve as a contributing factor to business success.
By pledging a contribution, the consumer gets to establish a relationship is unique and not possible with a big-box retailer. Microbranding companies have used this strategy as a way to take market-share away from the giants in their various industries.
However, as small businesses continue to find success through microbranding, concerns are mounting over the future of this successful business model. An article published by Francis Jacquery on Medium, suggests that the microbranding sector is fast becoming a crowded field. As a result, entrepreneurs who wish to achieve success in future will need to adopt fresh ideas to keep ahead of the competition. Outside of this, microbrand businesses also face challenges such as issues of quality control and lack of credentials, among others.