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Outdoor products brand test water "crowdfunding" can bring what benefits
**What Are the Benefits of Outdoor Product Brand Testing Through Crowdfunding?**
*Date: April 6, 2015, 10:57 AM*
Recently, two outdoor-related products were tested through a crowdfunding campaign. One was from Yao Ji Poker, a brand that had just entered the sports and outdoor product market, and the other was led by a well-known domestic outdoor brand. Both companies have sufficient funding. So why did they choose to go this route? Let’s explore the advantages of crowdfunding.
**Reduced Product Costs**
One of the main benefits of crowdfunding is that it allows consumers to pay for a product before it's even manufactured. If the campaign is successful, and the development and production process goes smoothly, it significantly reduces both financial risk and production costs. This model helps brands test the market without heavy upfront investment.
**Effective Advertising**
A successful crowdfunding campaign serves as a powerful form of advertising. The amount of money raised and the number of participants act as a strong endorsement. Moreover, platforms like Taobao and JD.com can generate massive visibility, helping brands reach a wider audience.
**Free Market Research**
Since the funds come directly from consumers, their support and feedback are essentially a real-time market survey. This gives brands valuable insights into how their product might perform when launched on a larger scale.
The backgrounds of these two outdoor brands are quite prominent, but they seem to place more emphasis on the latter two benefits—market validation and exposure. In practice, crowdfunding is particularly beneficial for small startups and individual creators who want to leverage the internet’s communication power. It allows them to showcase their creativity, gain public attention, and secure the financial support they need.
Compared to traditional financing methods, crowdfunding is more open and accessible. As long as the project resonates with the public, you can secure initial funding, even if the amount isn’t huge. For those with big ideas, the possibilities are endless.
However, there are some important considerations for small businesses or individuals looking to use crowdfunding to bring their creative visions to life:
**Production Pressure**
Crowdfunding creates a sense of urgency. Most platforms require you to deliver your product within a set timeframe. Failure to meet your commitments could damage your reputation and trust with backers.
**Lack of Investor Expertise**
While crowdfunding can help raise funds quickly, it doesn't guarantee long-term financial stability. Unlike venture capital, which often provides ongoing support and guidance, crowdfunding supporters may lose interest after the initial campaign.
**Limited Entrepreneurial Guidance**
Traditional VCs usually have extensive experience and industry connections. They can help you avoid common pitfalls, especially during product promotion. Crowdfunding supporters, on the other hand, typically don’t offer structured or strategic advice.
In conclusion, while crowdfunding offers many advantages for outdoor brands and independent creators, it also comes with its own set of challenges. Understanding these pros and cons is essential for anyone considering this approach.