We have some exciting news at Hubbub! We have partnered with Tesco to create their crowdfunding platform Tesco Backit.
Crowdfunding for good causes has been at the core of Hubbub since 2011, primarily in the non-profit and education space. Working with Tesco, we have seized the opportunity to bring the democratic power of crowdfunding, into the FMCG sector.
Tesco Backit allows suppliers to showcase food and drink products to customers online. These products may be from independent suppliers who need to market demand before being stocked or need to test a new product on a wide consumer base. With crowdfunding, people can support products they actually want to see in big stores. Crowdfunding lets the masses play a new and innovative part in deciding which products retailers sell.
Hubbub’s CEO & Founder, Jonathan May, explains more:
Can you describe what BackIt is 1-2 sentences?
Why did Hubbub decide to partner with Tesco?
We think it’s awesome that a big company is looking to disrupt their buying chain to improve their relationship with suppliers, get access to really cool stuff and build a great brand around it.
Gathering data about customer interests and using this to inform buying decisions seems like such a good use of crowdfunding, integrated into core business purpose, and gives great opportunities to suppliers to to test/market new ideas.
Prosecco mixers that can be drizzled onto desert (Drunken Berries),Triple distilled gin (Sibling Distillery), ready to drink ancient green tea (Tg Green Teas): these are just a few of the exciting products being showcased on Tesco BackIt. Tesco can see which products are drawing in the most support from consumers, which is invaluable information about the products people have a real appetite for.
What can crowdfunding do for the future of online retailers and FMCGs?
The same logic can be applied to any FMCG space, where a large company has access to a large customer base, but struggles to work out how to leverage its expertise in distribution, delivery or shelf space in the face of constant product innovation. So this is obviously highly robust across fashion too, and potentially electronics. Expect to see people doing this in these spaces soon.
How does partnering with a corporate business fit into Hubbub’s mission of digital giving for good causes?
The real winners here are those with a consumer idea and a passion to deliver it. We believe in creating and powering democratic opportunities for funding, and this project meets all of our tests of high impact.
Back It delivers value to the supplier by allowing exposure to a wide consumer base, delivers value to a consumer by allowing early access to great new products, and delivers value to Tesco by improving their supplier relations and better informing their buying decisions so they can better fit customer needs.
We’re about integrating crowdfunding into the DNA of any organisation, and we’re very much doing this with Tesco.
Do you think crowdfunding will help businesses to get more products consumers actually care about on the market?
Yes, and it will shorten the time to market of many products too. It’s very easy for big companies to rule out things that look or feel a bit risky.
Take the example of Jessie Smith’s line of bitters, Five by Five tonics which started off as a crowdfunding campaign before then being sold by major drinks retailers. 229 backers pledged $9,942 which was over $6,000 above Smith’s original goal.
If online retailers can see unexpected support for a product via a crowdfunding campaign on their own platform, they can fast-stream that product to be stocked in their store far quicker than typical routes. We’re very excited about the future of crowdfunding to power innovative in retail, fashion and any other FMCG sectors struggling to embrace the vast quantity of quality independent content or products.
See here if you’re an online retailer looking for more information about how Hubbub can integrate crowdfunding into your organization.