What problem is discoverdd solving?
The digital age has made launching a new consumer goods products much easier. As competition for consumer’s attention and digital ad placement has increased, it’s harder and cost more to get the eyeballs needed to grow. Physical retail is the old, new way to get found. Over the last 5+ years we’ve seen digital native brands move into physical stores through popups, store-in-stores, and the larger brands opening their own standalone stores, all to support customer acquisition and sales growth.
Discoveredd addresses the eyeball issue for digital native brands by providing them with a nationwide retail footprint at a lower cost than opening their own store.
Amazon is seen as an almost essential strategic move to address the eyeballs issue but it comes aat a steep cost to the brand. Shopify is the premier partner for building branded experience for online shopping but it does not address the eyeballs issue.
Discoveredd addresses the eyeball issue with it’s own marketplace to encourage the online discovery of digital native brands and products. It addresses the negative brand experience of Amazon by leveraging a hybrid model with online store-in-store branded experiences and centralized checkout. These operations are backed by a ship from store fulfillment model which will reduce shipping costs.
Research Points
Becoming Known and acquiring customers is challenge #1
Starting a new consumer goods brand often faces the challenge of building brand recognition and trust. New brands need to differentiate themselves in a crowded market, requiring significant marketing efforts to connect with consumers. Additionally, securing funding for product development, manufacturing, and distribution can be difficult without a proven track record. Managing supply chains, ensuring product quality, and navigating regulatory requirements also present hurdles. Ultimately, understanding and meeting consumer needs while achieving profitability is a complex and multifaceted challenge for new consumer goods brands.
Online advertising costs are skyrocketing.
Over the last five years, the cost of online advertising has seen significant increases across various platforms. This increase is evident in the Cost Per Click (CPC) rates across multiple advertising platforms. For example, the CPC rate on Amazon Ads saw a notable rise from $0.56 in 2018 to $1.2 in 2024, indicating a more than doubling of the cost per click in this period. This trend of increasing advertising costs is not limited to Amazon but is reflected across the digital advertising landscape.
The rising costs can be attributed to several factors, including the increased demand for digital ads as companies continue to prioritize online over traditional media, changes in ad targeting and privacy policies by big players like Apple that have made it more expensive to reach audiences on social platforms, and significant price volatility on newer platforms like TikTok due to increasing demand without established benchmark pricing.
Moreover, the digital advertising industry has witnessed a broad increase in prices across major players such as Meta, Google, Amazon, and TikTok. For example, Meta’s cost per thousand (CPM) increased by 61% year-over-year, while TikTok’s CPM surged by 185% year-over-year. Google also saw its programmatic display CPMs rise by 75% year-over-year, and its search ad CPCs were up by 14% year-over-year.
These increases highlight a broader trend in the digital advertising market, where costs are escalating across virtually all platforms. Online brands launching today need another option to grow and I believe that reimagined retail should be part of the marketing mix.
Clicks-to-Bricks | More established brands are going into retail.
“Clicks to bricks” refers to the strategy adopted by online-only (digitally native) brands to open physical retail stores. This trend signifies a shift from pure e-commerce operations to incorporating traditional brick-and-mortar locations, allowing these brands to expand their customer reach, enhance physical customer experience, and increase brand visibility beyond the digital realm.
As of 2018, more than 600 stores across the U.S. were operated by digitally native brands, according to real estate research firm Green Street Advisors. This trend, known as “clicks-to-bricks,” includes prominent names like Amazon Books and Casper as well as lesser-known startups. These brands initially embraced online platforms but are increasingly opening physical locations to enhance brand visibility, customer experience, and long-term growth.
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Lifestyle centers are becoming increasingly popular across the United States, offering a blend of retail, dining, entertainment, and often residential spaces in an open-air setting. These centers cater to the growing consumer demand for experiences and convenience, integrating shopping with leisure activities in aesthetically pleasing environments.
As of the most current information available, the International Council of Shopping Centers (ICSC) estimates that there are 412 lifestyle centers open in the United States. This number represents a little under 2% of the total number of shopping centers in the country.
One notable example of a successful lifestyle center is Easton Town Center in Columbus, Ohio, managed by Steiner + Associates. The center has seen a significant increase in sales and remains fully occupied, demonstrating the strong demand for experiential spending on dining and entertainment. Similarly, Brookfield Properties’ Shops at La Cantera in San Antonio, Texas, has surpassed pre-pandemic foot traffic levels, adding to its roster of tenants such as Nike Live, Alo Yoga, and David Yurman, showcasing the appeal of lifestyle centers to both consumers and retailers.
These developments often feature high-quality dining options with both indoor and outdoor seating, fitness boutiques, spas, and health-focused retailers, aligning with consumer preferences for wellness and quality of life. The architecture and design of lifestyle centers prioritize outdoor spaces, greenery, and walkability, creating an inviting atmosphere that encourages longer visits and increased spending.
Lifestyle centers are not merely about shopping; they aim to serve as the modern “town squares,” offering a community-oriented space where people can gather, socialize, and enjoy a variety of activities. This trend reflects a broader shift in retail, moving away from traditional enclosed malls to mixed-use developments that better meet the desires of today’s consumers for authentic, engaging experiences.
For more detailed insights into the evolution of lifestyle centers and specific examples across the country, visiting the websites of the International Council of Shopping Centers (ICSC), REBusinessOnline, and The New Republic can provide further information.
Top 35 Metropolitan Cities in the USA
- New York City, New York
- Los Angeles, California
- Chicago, Illinois
- Houston, Texas
- Phoenix, Arizona
- Philadelphia, Pennsylvania
- San Antonio, Texas
- San Diego, California
- Dallas, Texas
- San Jose, California
- Austin, Texas
- Jacksonville, Florida
- Fort Worth, Texas
- Columbus, Ohio
- Charlotte, North Carolina
- Indianapolis, Indiana
- San Francisco, California
- Seattle, Washington
- Denver, Colorado
- Nashville, Tennessee
- Washington, D.C.
- Oklahoma City, Oklahoma
- Boston, Massachusetts
- El Paso, Texas
- Portland, Oregon