What a year 2020 was! Like most people, I have put 2020 in the rearview mirror and really focused on making 2021 a year to remember! Birthdays, school graduations, weddings, and other major life events have all been affected some way or another this year thanks to COVID-19. This was also no exception to the annual DATG “Day After Thanksgiving” sales event. As a former Sears and OfficeMax buyer, I have seen my fair share of DATG sales events to last a lifetime. However, at last year’s’ DATG sales event, I noticed a trend emerging.
Instead of retailers listing the hot price on a 4K television, I saw promos on chess sets and other board games. Why? As many states instituted stay-at-home orders in the Fall, consumers were looking for products to “play at home”. Retailers also promoted products in these trending categories as well:
In addition, many retailers chose to push their blockbuster sales items online versus having to deal with crowds in stores during the Thanksgiving holiday weekend. Most offered sales on their website throughout the month of November. One major retailer launched one hot DATG sales item on their website every day in November while another major retailer offered a 10% discount when the consumer would purchase the item online but picked it up curbside outside the store.
First, consumers are discovering new products almost exclusively online. Potential customers are no longer browsing shelves or taking trips to the local shopping mall. Rather, they are being targeted on Facebook and Google by both manufacturers and digital ad agencies.
Second, consumers are validating purchases with online product reviews. Manufacturers who develop strong reviews online run the market. At Retailbound, we have clients that have thousands of verified 4 and 5-star reviews on their items at Amazon. Since demand exists online, retail buyers at brick-and-mortar stores are no longer feeling that they are taking the risk on in-store placement for small brands.
Consumer product startups are well-positioned to take advantage of this new retail paradigm. Here are a few ways a startup can best adapt:
Hopefully this blog post inspires you to continue your dream of getting your products sold into major retailers someday. While retail is tough, it’s not impossible. I look forward in seeing your product in retail very soon. Good luck and good selling!