Crowdfunding: The Future Of Retail?
By Hannah Ash, contributing writer
Crowdfunding is taking to the runway, thanks to new e-commerce platform Crowdemand. The platform launched this month with the support of fashion designers including Cynthia Rowley, Meskita, and WHIT. Designers use the platform to unveil Crowdemand-exclusive designs, giving Crowdemand’s users a chance to place pre-orders for garments by paying 50 percent upfront. When a design reaches its pre-order goal, users are charged the remaining 50 percent and the garments are manufactured.
For designers, Crowdemand offers a foolproof way to launch new designs without worrying about whether it will sell or not; for shoppers, Crowdemand creates an interactive way to contribute to the world of fashion. Designs produced via the website will fit into one of the following categories: Backed by Popular Demand, Celebrity Spotting, and New Demand. Designs will be rendered for consideration will be by request, from the past or based on current celebrity styles. Co-CEO of Crowdemand, Yaniv Reeis, comments, “what we're trying to do here is let the market dictate what consumers really want." A total of 20 designers have currently signed on to showcase designs on the platform.
According to Liat Cohen, VP of Business Development, “this retail model is the future; it bridges the gap between consumer and designer, bringing unparalleled benefits to both parties which are unavailable within traditional retail models.” From raising funds for civic projects to crowdfunding real estate, crowdfunding has come a long way since the rise of platforms such as Kickstarter and Indiegogo. Last week, plans for the Hard Rock Hotel Palm Springs were announced on crowdfunding platform Realty Mogul; accredited investors will enjoy perks from profit sharing to room discounts. As crowdfunding continues to expand beyond helping small businesses launch, platforms like Crowdemand are poised to increase customer engagement with brands by turning customers into investors and decision makers.
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