{"id":7611,"date":"2021-04-27T12:59:52","date_gmt":"2021-04-27T20:59:52","guid":{"rendered":"https:\/\/www.rangeme.com\/blog\/?p=7611"},"modified":"2021-10-06T14:51:25","modified_gmt":"2021-10-06T22:51:25","slug":"e-commerce-ignites-global-growth-for-small-brands","status":"publish","type":"post","link":"https:\/\/www.rangeme.com\/blog\/e-commerce-ignites-global-growth-for-small-brands\/","title":{"rendered":"E-Commerce Ignites Global Growth for Small Brands"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Small brands, you\u2019re in demand \u2013 at home and around the world. E-commerce is amplifying the <a href=\"https:\/\/www.rangeme.com\/blog\/in-retail-small-is-big\/\">Small is Big<\/a> trend, helping small consumer packaged goods (CPG) brands drive revenue growth and influence global consumption. According to IRI, the pandemic propelled U.S. consumers toward smaller CPG manufacturers. As bigger brands struggled to meet demand, many shoppers chose smaller brands, which accounted for about one-third of the 10.3% CPG sales growth in 2020.<span class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_7611_1('footnote_plugin_reference_7611_1_1');\" onkeypress=\"footnote_moveToReference_7611_1('footnote_plugin_reference_7611_1_1');\" ><sup id=\"footnote_plugin_tooltip_7611_1_1\" class=\"footnote_plugin_tooltip_text\">1<\/sup><\/a><span id=\"footnote_plugin_tooltip_text_7611_1_1\" class=\"footnote_tooltip\">&nbsp;De Socio, Mike. Big Food lost $12B in sales to small CPGs and private label in 2020, IRI says. Food Dive. February 4, 2021.<\/span><\/span><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_7611_1_1').tooltip({ tip: '#footnote_plugin_tooltip_text_7611_1_1', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top right', relative: true, offset: [10, 10], });<\/script><\/p>\n\n\n\n<p>The following graph of Nielsen data reinforces U.S. small brands\u2019 momentum in outperforming leading brands in competitive CPG categories.<span class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_7611_1('footnote_plugin_reference_7611_1_2');\" onkeypress=\"footnote_moveToReference_7611_1('footnote_plugin_reference_7611_1_2');\" ><sup id=\"footnote_plugin_tooltip_7611_1_2\" class=\"footnote_plugin_tooltip_text\">2<\/sup><\/a><span id=\"footnote_plugin_tooltip_text_7611_1_2\" class=\"footnote_tooltip\">&nbsp;Kopka, Udo, Eldon Little, Jessica Moulton, Ren\u00e9 Schmutzler, and Patrick Simon. What got us here won\u2019t get us there: A new model for the consumer goods industry. McKinsey &amp; Company. July 30, 2020.<\/span><\/span><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_7611_1_2').tooltip({ tip: '#footnote_plugin_tooltip_text_7611_1_2', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top right', relative: true, offset: [10, 10], });<\/script><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"609\" height=\"260\" src=\"https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Leading-vs.-SMB-growth-rates.-Nielsen-data-in-McKinsey-whitepaper-for-RM-blog-1.png?auto=format%2Ccompress\" alt=\"\" class=\"wp-image-7626\" srcset=\"https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Leading-vs.-SMB-growth-rates.-Nielsen-data-in-McKinsey-whitepaper-for-RM-blog-1.png?w=609 609w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Leading-vs.-SMB-growth-rates.-Nielsen-data-in-McKinsey-whitepaper-for-RM-blog-1.png?w=300 300w\" sizes=\"auto, (max-width: 609px) 100vw, 609px\" \/><\/figure><\/div>\n\n\n\n<p>Amid surging popularity, small brands are embracing e-commerce as their first step to connect with global consumers and retail buyers to fuel growth. E-commerce democratizes retail, which helps brands like yours reach global markets with ease, so you can sell wherever your products are in demand.<br><br>Small brands have an enviable edge in agility and speed-to-market. While larger suppliers often rework their legacy systems to adapt to consumer demand, smaller suppliers like you can pounce on emerging trends and gain a first-mover advantage. Popular global consumer trends include <a href=\"https:\/\/www.rangeme.com\/blog\/sustainability-sparks-retail-sales\/\" target=\"_blank\" rel=\"noreferrer noopener\">sustainability<\/a>, <a href=\"https:\/\/www.rangeme.com\/blog\/purposeledbrands\/\" target=\"_blank\" rel=\"noreferrer noopener\">purpose-led brands<\/a>, and health and wellness, including <a href=\"https:\/\/www.rangeme.com\/blog\/plant-based-meat-goes-mainstream\/\" target=\"_blank\" rel=\"noreferrer noopener\">plant-based foods<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why limit yourself?<\/h2>\n\n\n\n<p>If your products align with these mega-trends, you could be in-demand beyond the domestic border. Selling online could boost your 2021 sales by serving common needs among consumers around the world. For instance, similar to North American shoppers, European consumers crave greater variety, value, and healthy CPG options.<span class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_7611_1('footnote_plugin_reference_7611_1_3');\" onkeypress=\"footnote_moveToReference_7611_1('footnote_plugin_reference_7611_1_3');\" ><sup id=\"footnote_plugin_tooltip_7611_1_3\" class=\"footnote_plugin_tooltip_text\">3<\/sup><\/a><span id=\"footnote_plugin_tooltip_text_7611_1_3\" class=\"footnote_tooltip\"> Spencer-Jolliffe, Natasha. How to predict trends in a pandemic. Speciality Food. April 19, 2021.<\/span><\/span><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_7611_1_3').tooltip({ tip: '#footnote_plugin_tooltip_text_7611_1_3', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top right', relative: true, offset: [10, 10], });<\/script><\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><em>The most agile, customer-centric brands will triumph online<\/em>.<\/p><cite> <\/cite><\/blockquote><\/figure>\n\n\n\n<p>The booming e-commerce space efficiently connects brands with global shoppers. Last year, worldwide retail e-commerce sales grew more than 27%, accounting for $4.28 trillion. Latin America earned nearly 37% e-commerce growth, with Argentina rising a whopping 79%.<span class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_7611_1('footnote_plugin_reference_7611_1_4');\" onkeypress=\"footnote_moveToReference_7611_1('footnote_plugin_reference_7611_1_4');\" ><sup id=\"footnote_plugin_tooltip_7611_1_4\" class=\"footnote_plugin_tooltip_text\">4<\/sup><\/a><span id=\"footnote_plugin_tooltip_text_7611_1_4\" class=\"footnote_tooltip\"> Cramer-Flood, Ethan. Global Ecommerce Update 2021. eMarketer. January 13, 2021.<\/span><\/span><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_7611_1_4').tooltip({ tip: '#footnote_plugin_tooltip_text_7611_1_4', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top right', relative: true, offset: [10, 10], });<\/script> As online shopping rises globally, you could improve your top line by selling next door in Canada and Mexico or further away in New Zealand and Australia. <\/p>\n\n\n\n<p>E-commerce has low barriers to entry, making it easy for small brands to gain limitless reach, given the international nature of the Internet. Also, your merchandise is no longer constrained to only two feet of brick-and-mortar shelf space thanks to the endless aisle of your digital shelf.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Brands&#8217; e-commerce alternatives<\/h2>\n\n\n\n<p>To reach consumers around the world, brands now choose among the following distribution channels.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Direct-to-consumer (DTC):<\/strong> More CPG brands are skipping retailers and selling their products directly to shoppers through their own e-commerce websites. Brands gain control over their merchandising, and pricing, yet distribution and marketing acquisition costs could be steep.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Online marketplaces:<\/strong> Synonymous with e-commerce, <a href=\"https:\/\/www.rangeme.com\/amazon\" target=\"_blank\" rel=\"noreferrer noopener\">Amazon<\/a> has more than 1.9 million small- and medium-sized businesses selling on its third-party marketplace to more than 200 million Prime members worldwide.<span class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_7611_1('footnote_plugin_reference_7611_1_5');\" onkeypress=\"footnote_moveToReference_7611_1('footnote_plugin_reference_7611_1_5');\" ><sup id=\"footnote_plugin_tooltip_7611_1_5\" class=\"footnote_plugin_tooltip_text\">5<\/sup><\/a><span id=\"footnote_plugin_tooltip_text_7611_1_5\" class=\"footnote_tooltip\"> &nbsp;Read Amazon CEO Jeff Bezos\u2019s Letter to Shareholders. The Wall Street Journal. April 15, 2021.<\/span><\/span><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_7611_1_5').tooltip({ tip: '#footnote_plugin_tooltip_text_7611_1_5', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top right', relative: true, offset: [10, 10], });<\/script> Brands can opt to access logistics expertise through Fulfillment by Amazon. Etsyis another marketplace that attracts small brands, especially sellers of one-of-a-kind artisan goods.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Retailers that ship internationally<\/strong>: To align with global omnichannel trends, more retailers partner with logistics experts to ship brands\u2019 products internationally. For instance, <a href=\"https:\/\/www.rangeme.com\/walgreens\" target=\"_blank\" rel=\"noreferrer noopener\">Walgreens<\/a>\u2019 online store uses package forwarding company Planet Express and <a href=\"https:\/\/www.rangeme.com\/sephora\" target=\"_blank\" rel=\"noreferrer noopener\">Sephora<\/a> partners with global e-commerce provider Borderfree.<br><\/li><li><strong>Social media:<\/strong> Platforms like TikTok, <a href=\"https:\/\/www.rangeme.com\/blog\/social-media-marketing-tips-facebook-instagram-and-pinterest\/\" target=\"_blank\" rel=\"noreferrer noopener\">Facebook, Instagram, and Pinterest<\/a> are adding new e-commerce functionality to sell to consumers where they already socialize online. Small brands can showcase their products to global consumers as these platforms evolve.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">E-commerce trends influence business strategies<\/h2>\n\n\n\n<p>As you consider how e-commerce could help you grow, keep in mind the following e<em>&#8211;<\/em>commerce trends affecting brands and retailers.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Online is getting busier:<\/strong> As more consumers and companies migrate to e-commerce, brand rivalry is heating up. Brands need to consider which platforms are best for their business models to maximize online sales. The best practices coming up in the next section recommend ways to compete effectively online.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><em>Small businesses in grocery, health and fitness<\/em> <em>are emerging as e-commerce winners<\/em>.<span class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_7611_1('footnote_plugin_reference_7611_1_6');\" onkeypress=\"footnote_moveToReference_7611_1('footnote_plugin_reference_7611_1_6');\" ><sup id=\"footnote_plugin_tooltip_7611_1_6\" class=\"footnote_plugin_tooltip_text\">6<\/sup><\/a><span id=\"footnote_plugin_tooltip_text_7611_1_6\" class=\"footnote_tooltip\">Halmeri, Amy. When You\u2019re a Small Business, E-Commerce Is Tougher Than It Looks. The New York Times. March 7, 2021.<\/span><\/span><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_7611_1_6').tooltip({ tip: '#footnote_plugin_tooltip_text_7611_1_6', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top right', relative: true, offset: [10, 10], });<\/script><\/p><\/blockquote><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Consumers shape assortments:<\/strong> Brands can captivate consumers and retail buyers by emphasizing how their products are consumer-centric. Distinguish your brand by reflecting shoppers\u2019 values and lifestyles through <a href=\"https:\/\/www.rangeme.com\/blog\/5-key-takeaways-on-the-power-of-certifications\/\" target=\"_blank\" rel=\"noreferrer noopener\">certifications<\/a>, such as organic, vegan, keto and hypoallergenic products. Align with retailers\u2019 corporate social responsibility initiatives like celebrating consumer <a href=\"https:\/\/www.rangeme.com\/blog\/supplier-diversity-fuels-prosperity\/\" target=\"_blank\" rel=\"noreferrer noopener\">diversity<\/a> and innovating with sustainability.&nbsp;<\/li><li><strong>Trust wins sales: <\/strong>Since online shoppers and retail buyers can\u2019t immediately touch, taste, or test your products, use digital content to convey sensory information to inspire consumer confidence in your brand. Sharing accurate product data and images, relevant certifications, reviews, user-generated content and a hassle-free return policy boost credibility. Telling your origin story and showing the people behind your products also demonstrates authenticity and transparency.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">E-commerce best practices boost your brand power<\/h2>\n\n\n\n<p>These proven practices can help your brand prepare for global online growth.<\/p>\n\n\n\n<p><strong>1. Consumer analysis &nbsp; &nbsp;<\/strong> &nbsp;<br>Learn what products your target consumers currently use and compare your goods\u2019 features and benefits. Research different jurisdictions to spot where your products can win by aligning with <a href=\"https:\/\/www.rangeme.com\/blog\/2021-retail-forecast-in-demand-products-and-trends-to-watch\/\" target=\"_blank\" rel=\"noreferrer noopener\">2021\u2019s hottest product trends<\/a>, plus underserved niches. Regional trends can also help localize your marketing to resonate and sell more to consumers.<strong><br><br>2. Competitive analysis<\/strong> &nbsp; &nbsp; &nbsp;<br>E-commerce boosts competition, so know which global rivals need to be on your radar, as their items represent potential substitutes to your products. Study their ranges to know what makes your products unique. Determine how your <a href=\"https:\/\/www.rangeme.com\/blog\/best-practices-for-pricing-products\/\" target=\"_blank\" rel=\"noreferrer noopener\">pricing<\/a> can help you compete as more global consumers search online for <a href=\"https:\/\/www.rangeme.com\/blog\/value-shopping-still-soars-in-strong-economy\/\" target=\"_blank\" rel=\"noreferrer noopener\">value<\/a> and <a href=\"https:\/\/www.rangeme.com\/blog\/affluent-americans-seek-premium-products\/\" target=\"_blank\" rel=\"noreferrer noopener\">premium<\/a> products. Also, plan how you can collaborate with supply chain partners to scale fast if your online sales surge.<strong><br><br>3. <\/strong><a href=\"https:\/\/www.rangeme.com\/blog\/digital-marketing-5-steps-to-get-you-started\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Digital marketing<\/strong><\/a> &nbsp; &nbsp; <strong><br><\/strong>Online marketing and communities have stretched consumer trends across borders. Stand out by aligning your marketing with global product trends like vegan and hypoallergenic. Emphasize how your company is unique, such as woman-owned, ethnic minority-owned or veteran-owned. Share timely data and high-quality images on product description pages, keywords and ad campaigns. Whatever e-commerce platform you choose, understand how its algorithm affects your online visibility and brand reach.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Boldly go where no brand has gone before<\/h2>\n\n\n\n<p>To seize upon small brands\u2019 popularity, consider e-commerce as your best first step to connect your products with consumers and retailers around the world. E-commerce levels the playing field for brands of all sizes to sell to global markets and grow in 2021. Instead of wondering why you should sell your products to eager shoppers in Dublin, Vancouver, or Sydney, the question is now, \u201cWhy not?\u201d<br><br>Stay tuned for an upcoming post on 2021 global CPG trends sparking small brands\u2019 success.<\/p>\n<div class=\"speaker-mute footnotes_reference_container\"> <div class=\"footnote_container_prepare\"><p><span role=\"button\" tabindex=\"0\" class=\"footnote_reference_container_label pointer\" onclick=\"footnote_expand_collapse_reference_container_7611_1();\">&#x202F;<\/span><span role=\"button\" tabindex=\"0\" class=\"footnote_reference_container_collapse_button\" style=\"\" onclick=\"footnote_expand_collapse_reference_container_7611_1();\">[<a id=\"footnote_reference_container_collapse_button_7611_1\">+<\/a>]<\/span><\/p><\/div> <div id=\"footnote_references_container_7611_1\" style=\"display: none;\"><table class=\"footnotes_table footnote-reference-container\"><caption class=\"accessibility\">References<\/caption> <tbody> \r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" class=\"footnote_plugin_index_combi pointer\"  onclick=\"footnote_moveToAnchor_7611_1('footnote_plugin_tooltip_7611_1_1');\"><a id=\"footnote_plugin_reference_7611_1_1\" class=\"footnote_backlink\"><span class=\"footnote_index_arrow\">&#8593;<\/span>1<\/a><\/th> <td class=\"footnote_plugin_text\">&nbsp;De Socio, Mike. Big Food lost $12B in sales to small CPGs and private label in 2020, IRI says. Food Dive. February 4, 2021.<\/td><\/tr>\r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" class=\"footnote_plugin_index_combi pointer\"  onclick=\"footnote_moveToAnchor_7611_1('footnote_plugin_tooltip_7611_1_2');\"><a id=\"footnote_plugin_reference_7611_1_2\" class=\"footnote_backlink\"><span class=\"footnote_index_arrow\">&#8593;<\/span>2<\/a><\/th> <td class=\"footnote_plugin_text\">&nbsp;Kopka, Udo, Eldon Little, Jessica Moulton, Ren\u00e9 Schmutzler, and Patrick Simon. What got us here won\u2019t get us there: A new model for the consumer goods industry. McKinsey &amp; Company. July 30, 2020.<\/td><\/tr>\r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" class=\"footnote_plugin_index_combi pointer\"  onclick=\"footnote_moveToAnchor_7611_1('footnote_plugin_tooltip_7611_1_3');\"><a id=\"footnote_plugin_reference_7611_1_3\" class=\"footnote_backlink\"><span class=\"footnote_index_arrow\">&#8593;<\/span>3<\/a><\/th> <td class=\"footnote_plugin_text\"> Spencer-Jolliffe, Natasha. How to predict trends in a pandemic. Speciality Food. April 19, 2021.<\/td><\/tr>\r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" class=\"footnote_plugin_index_combi pointer\"  onclick=\"footnote_moveToAnchor_7611_1('footnote_plugin_tooltip_7611_1_4');\"><a id=\"footnote_plugin_reference_7611_1_4\" class=\"footnote_backlink\"><span class=\"footnote_index_arrow\">&#8593;<\/span>4<\/a><\/th> <td class=\"footnote_plugin_text\"> Cramer-Flood, Ethan. Global Ecommerce Update 2021. eMarketer. January 13, 2021.<\/td><\/tr>\r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" class=\"footnote_plugin_index_combi pointer\"  onclick=\"footnote_moveToAnchor_7611_1('footnote_plugin_tooltip_7611_1_5');\"><a id=\"footnote_plugin_reference_7611_1_5\" class=\"footnote_backlink\"><span class=\"footnote_index_arrow\">&#8593;<\/span>5<\/a><\/th> <td class=\"footnote_plugin_text\"> &nbsp;Read Amazon CEO Jeff Bezos\u2019s Letter to Shareholders. The Wall Street Journal. April 15, 2021.<\/td><\/tr>\r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" class=\"footnote_plugin_index_combi pointer\"  onclick=\"footnote_moveToAnchor_7611_1('footnote_plugin_tooltip_7611_1_6');\"><a id=\"footnote_plugin_reference_7611_1_6\" class=\"footnote_backlink\"><span class=\"footnote_index_arrow\">&#8593;<\/span>6<\/a><\/th> <td class=\"footnote_plugin_text\">Halmeri, Amy. When You\u2019re a Small Business, E-Commerce Is Tougher Than It Looks. The New York Times. 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