Retail companies already have a crowd in their consumers and suppliers. Improving the relationship with existing suppliers and testing new suppliers is one reason why retail companies should get their own crowdfunding platform. Furthermore, it is a way to monitor the market and get data on market tendencies within retail.
With a crowdfunding platform retail companies can...
Cultivate the community of investors by allowing them to interact and communicate new projects and opportunities simply and easily.
Strengthen the brand by opening up investment opportunities to a larger (and perhaps international) crowd and by exploiting network effects to create awareness.
Test new suppliers and products by letting the crowd support those suppliers and buy those products they find interesting.
Collect data about market tendencies by getting data on what kind of products consumers are interested in buying
Support entrepreneurs that provide products within retail by letting consumers pre-order products and thereby finance e.g. production costs.
The crowdfunding market for retail institutions
The global crowdfunding market reached 372 billion USD in 2017 and is still growing. Crowdfunding platforms are transforming the accessibility of investments and opening up the market to non-professional investors, thereby enabling more money to be invested into businesses around the globe.
For now, there isn't a lot of crowdfunding platforms owned by retail companies. Coop Crowdfunding is a definite example of how a dedicated crowdfunding platform established by a retail company can support entrepreneurship and innovation but also collect data about market tendicies and establish new partnerships with new suppliers.
Coop is Denmark's largest retailer with over 1,200 stores and 1.7 million members. Their crowdfunding platform, Coop Crowdfunding, allows new as well as established food producers to get funding for their projects.
The platform is a way for Coop to improve the relationship with existing suppliers and test new suppliers and products. For food producers, the platform is not only a way to get funding and marketing, but also a stepping stone into the Coop universe on Coop Mad and in Coop's stores.
HOW IT WORKS
The Smallbrooks service in the cloud contains all the features needed for crowdfunding. We can therefore create new crowdfunding platforms that are tailor-made for each customer while reusing functionality from a common toolbox and without having to reinvent the wheel each time. This makes it fast, easy and affordable for everyone to get their own crowdfunding platform. It's as simple as that!
Want to know more about how it all works?