CommerceHub Brand Insights 2017

COMMERCEHUB BRAND INSIGHTSHow Brand growth strategies impact Retailers

Consumers expect to find what they want

when they want it. Anytime. Anywhere.

What about Brands?

“The number of manufacturers

selling directly to consumers

is expected to grow 71% this

year to more than 40% of

all manufacturers.”

Source: Diorio, Stephen, How Leading Brands Are Winning The 'Direct-To-Customer' Conversation,

Forbes Insights, June 7, 2016

CommerceHub surveyed*

our network

of ~10,000 Brands and other suppliers.

TITLES OF RESPONDENTS RESPONSES

Manager 31%

Senior Director or Director 19%

EVP, SVP, VP 18%

C-Suite 17%

Other 15%

*Survey was sent to 17,889 people from approximately 9,900 companies on February 6 – 10, 2017. The survey received 454 responses.

Where Do Brands See

their Biggest Opportunities?

Q: Which of these are your biggest opportunities in the next 12 months?

A: Growing sales from my retailers – 67%; Selling product with new retail partners – 62%

Selling more with current Retail partners

Selling with new Retailer partners67% 62%

34% Selling to consumers on marketplaces

Q: Which of these are your biggest opportunities in the next 12 months? A: Succeeding in selling on marketplaces like Amazon, eBay, Walmart, and Jet.com – 34%

Selling to consumers on their own e-commerce sites 30%

Q: Which of these are your biggest opportunities in the next 12 months? A: Succeeding in selling on my own e-commerce site – 30%

How will Brands increase

sales with Retail partners?

Say increasing product assortment

with their Retail partners

Q: Which of these are your biggest

opportunities in the next 12 months? A:

Growing product assortment with my retailers

– 48%

48%

12%

CommerceHub Retailers

increased sales by…

Source: 2015-2016 CommerceHub internal data

10%For every

increase in unique

products sold

We estimate the average Retailer offers

only ~15% of a Brand’s full product catalog

Source: Based on input from CommerceHub Retail and Brand customers, 2015-2016

What about selling

direct to consumers?

59%

sell direct to consumers

Q: Do you currently sell your products directly to end consumers,

on your own e-commerce website? A: Yes – 59%

Of those who don’t but think they should

WORRY ABOUT

CHANNEL CONFLICT

Q: Why don’t you currently sell your products

directly to end consumers, on your own e-

commerce website?

A: Channel conflict (e.g., with retailers) – 49%

49%

What does this mean for

Retailers & Brands?

1. The top priority for Brands is to grow through their Retail partners

Retailers and Brands want the same thing…

Increased sales. Product assortment drives sales.

2. Brands want to work with new Retail partners

Brands will drive increased product assortment across new Retailers, too.

Creating a flywheel effect.

Increased sales.More Retailers. Greater product assortment.

3. Brands want to better control their presence on marketplaces

Brands will sell on marketplaces to gain control over their brand image and

pricing. The increased exposure will drive increased sales...

But also on their Retail channels.On marketplaces.

Brand strategies for

growth will drive growth

for Retailers, too.

COMMERCEHUB BRAND INSIGHTSHow Brand growth strategies impact Retailers