Color Long Tail Clip,72Pcs Long Tail Clip,Stationery Dovetail Clip,Sculpture Modeling Stylus Zhoushan Shenglan Trade Co., Ltd.  , https://www.seamiart.com
Outdoor products brand test water "crowdfunding" can bring what benefits
April 6, 2015, 10:57 AM
What Are the Benefits of Outdoor Product Brand Testing Through Crowdfunding?
Recently, two outdoor-related products underwent a "water test" — a term used in China to describe early-stage product testing. One was Yao Ji Poker, a brand that recently ventured into sports and outdoor products, and the other was a leader in domestic outdoor brands. Both have sufficient funding and resources. So why did they choose crowdfunding? Let’s explore the advantages of this innovative approach.
**Reduced Product Costs**
Crowdfunding allows consumers to pay for a product before it's even manufactured. If the campaign is successful and the development and production go smoothly, this significantly reduces financial risk and costs. It also helps businesses avoid overproduction and better align with real demand.
**Effective Advertising**
A successful crowdfunding campaign serves as free advertising. The number of backers and the total funds raised act as social proof, which can generate significant buzz. Platforms like Taobao and JD.com offer great visibility, helping to attract attention from a large audience.
**Free Market Research**
Since the money comes directly from consumers, their support reflects real interest in the product. This provides valuable feedback and insight into market potential, acting as a form of pre-launch market research.
Both outdoor brands involved in the test had strong backing, but they placed more emphasis on the latter two benefits — market validation and exposure. In practice, crowdfunding is particularly beneficial for small startups and individuals who want to leverage the internet’s reach to showcase their creativity, gain public attention, and secure the necessary funding. Unlike traditional financing, crowdfunding is more open and accessible. As long as your project resonates with the public, you can secure initial funding, often at a smaller scale. For creative entrepreneurs, this opens up endless possibilities.
However, there are challenges to consider if you're a small business or an individual looking to launch a product through crowdfunding:
**Production Pressure**
Once a campaign is funded, you’re obligated to deliver the product on time. Most platforms require fulfillment within a set timeframe, so managing production efficiently becomes critical.
**Lack of Investor Expertise**
While crowdfunding can quickly raise capital, it doesn’t guarantee ongoing support. Unlike venture capital, where investors often provide guidance and future funding, crowdfunding backers may lose interest after the initial campaign.
**Limited Entrepreneurial Support**
Traditional VCs not only invest money but also offer experience, industry connections, and strategic advice. Crowdfunding supporters, while enthusiastic, may not provide the same level of constructive feedback or long-term support.
In conclusion, crowdfunding offers a powerful way for outdoor brands and startups to test ideas, gather support, and reduce financial risk. But it also requires careful planning, clear communication, and strong execution. Whether you're a big brand or a small entrepreneur, understanding these benefits and challenges can help you make the most of this modern funding model.