TORONTO--(BUSINESS WIRE)--Hubba, global B2B commerce network powering the new retail economy, today released a white paper exploring the next generation of retail and the new leading role of small and independently owned companies. “The Curated Future: Why less selection, not more, will be the defining retail trend in 2018” is based on in-depth interviews with 595 small businesses across the US in the commerce sector. It looks at how those retailers who don’t currently benefit from the same economies of scale as Walmart and Amazon will seek to consolidate their power and improve their economies of scale while increasing their products’ speed and efficiency to shelf.
The study found that consumers’ buying habits are broken down into two major groups - “savers” who’s habits lead them to commodity products and “selectionists,” in search of unique and higher quality products. The study concludes that In 2018, the battleground will fall to winning over “selectionsts” and their high margin purchases.
With an influx of new brands crowding the market, consumers and retailers alike are facing a paradox of choice, and consumers are struggling to navigate this over-saturated market. Trust has become a key differentiating factor and as a result, retail buyers responsible for stocking stores are beginning to demand better tools to facilitate B2B (business to business) buying.
“90% of brands surveyed are actively trying to grow distribution and the next generation of successful retailers will rely on the ability to curate a relevant assortment of products for their consumers,” says Ben Zifkin, CEO Founder, Hubba. “Retailers will begin to demand better tools to facilitate B2B buying, a trillion dollar market currently divided between 1.2 million retailers.”
75% of methods buyers use to source new products currently involve no digital technology whatsoever, yet over 40% of those interviewed expressed interest in a B2B rating system and digital solution to identify the right products for their specific customers. If 2017 was the year that retail shook off its dead weight, 2018 will be the year that a new world of retail starts to take shape.
The following key themes emerged from the research and are detailed in the white paper:
- Quality, not quantity, will become the defining trend as consumers turn towards businesses that can offer a curated retail experience, rather than those that simply offer the most product. - 70 percent of interviewed Buyers said that they wished they could better predict what products to carry, making it clear to see that, like consumers, they aren’t sure exactly whose claims to trust.
- Independent retailers will consolidate their power and improve their economies of scale while increasing their products’ speed and efficiency to shelf. - Combined small businesses represent a $1 Trillion market, a buying force that outstrips many of their big name competitors
- Service-led companies like Yoga studios and restaurants will make selling products to captive audience key to their business model.
- Retailers are reconsidering size in favor of productivity, measured by profit per square foot. - 70 percent of interviewed Buyers said that they wished they could better predict what products to carry
- Retailers are beginning to seek out digital services like Hubba that they can trust to cut through the thousands of products - Small brands with annual sales of less than $1 billion are outperforming the competition in 18 of the top 25 categories.
To view the white paper in full, visit [LINK]
Hubba is the leading commerce network designed to empower independent companies to connect on business opportunities to grow their business. Using a combination of machine learning and personal curation Hubba matches brands with buyers. Buyers use Hubba to discover new products to meet their customer demands; and, Brands get increased distribution for their products. Hubba currently powers over 75,000 small-medium businesses.