CommerceHub surveyed our 10,000+ strong network of Brands and suppliers to understand how they plan to take on the sea changes reshaping omnichannel retail. Here are findings from our Brand Insights Study.

1. COMMERCEHUB BRAND INSIGHTS
How Brand growth strategies impact Retailers

2. Consumers expect to find what they want
when they want it. Anytime. Anywhere.

3. What about Brands?

4. “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

5. 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%
*Surveywas sent to 17,889 people from approximately 9,900companieson February6 – 10, 2017.The surveyreceived454 responses.

6. Where Do Brands See
their Biggest Opportunities?

7. Q:Whichof theseareyourbiggestopportunitiesin thenext12 months?
A: Growingsales frommyretailers –67%;Selling productwith new retailpartners– 62%
Selling more with
current Retail partners
Selling with new
Retailer partners67% 62%

8. 34% Selling to consumers on marketplaces
Q:Whichof theseare your biggestopportunities in thenext 12 months?A: Succeedingin selling on marketplaceslikeAmazon,eBay,Walmart,and Jet.com– 34%

9. Selling to consumers on their own e-commerce sites
30%
Q:Whichof theseare your biggestopportunities in thenext 12 months?A: Succeedingin selling on my own e-commercesite – 30%

10. How will Brands increase
sales with Retail partners?

11. Say increasing product assortment
with their Retail partners
Q:Whichof theseare your biggest
opportunities in the next 12 months?A:
Growing product assortmentwith myretailers
– 48%
48%

12. 12%
CommerceHub Retailers
increased sales by…
Source:2015-2016 CommerceHubinternaldata
10%For every
increase in unique
products sold

13. We estimate the average Retailer offers
only ~15%of a Brand’s full product catalog
Source:Basedon input fromCommerceHubRetailand Brandcustomers,2015-2016

14. What about selling
direct to consumers?

15. 59%
sell direct to consumers
Q:Do youcurrentlysellyour productsdirectlyto endconsumers,
on your own e-commercewebsite?A:Yes– 59%

16. Of those who don’t but think they should
WORRY ABOUT
CHANNEL CONFLICT
Q:Whydon’tyoucurrentlysell yourproducts
directlyto end consumers,onyourowne-
commercewebsite?
A: Channelconflict(e.g.,with retailers)– 49%
49%

17. What does this mean for
Retailers & Brands?

18. 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.

19. 2. Brands want to work with new Retail partners
Brands will drive increased product assortment across new Retailers, too.
Creating a flywheel effect.
Increasedsales.More Retailers.Greaterproduct assortment.

20. 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 theirRetailchannels.On marketplaces.

21. Brand strategies for
growth will drive growth
for Retailers, too.

22. COMMERCEHUB BRAND INSIGHTS
How Brand growth strategies impact Retailers