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Here’s Why Start-Ups Shouldn’t Ignore The Potential Of Physical Products

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Here’s Why Start-Ups Shouldn’t Ignore The Potential Of Physical Products

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Across the UK’s retail market, many companies are noticing a drop in physical sales, as consumers increasingly turn towards online stores when searching for everything from makeup to clothes and beyond.

As a result, many businesses are choosing to establish themselves online, and create innovative new ways to provide products and services digitally.

From replacing physical books with e-books, to streaming becoming the new DVD, there’s a digital solution for almost every product out there, but that doesn’t mean that start-ups should dismiss physical products altogether.

These are just a selection of some of the reasons why physical products are still a worthy investment for innovative start-ups.

Some Products Simply Can’t Be Digitalised

Whilst there are a great many solutions that can be digitalised, other simply cannot be. Everyone is still going to need physical food, and drinks, meaning that they’ll also need everything that comes alongside them, such as packaging and utensils. Additionally, physical infrastructure such as cars, buildings and computer equipment will always be required, meaning that these markets have a long way to go before they’re digitalised, if they ever are. Savvy businesses can make a big name for themselves in these markets.

Physical Products Increase Brand Awareness

Digital products are usually only seen and noticed by the individual using them, which means that you have to advertise them in order to showcase how they can benefit potential users. Physical products, however, exist in the real world, and can be seen not only by their user but also by those around them, in many cases. If they’re sold in stores, then they can also be noticed by shoppers, even if they’re not currently buying the product. This means that they help to increase your brand awareness and give you, essentially, free advertising.

Packing Also Offer Unique Opportunities For Advertising

Alongside the brand awareness the item’s existence provides, the packing for a physical product is also a great space for additional advertising. Physical products, such as drinks and food, come in packaging which requires labels, which offer a unique opportunity to advertise additional products or solutions. Work with an experienced label manufacturer like to create quality labels that will get your brand’s message out there, as well as share vital information about the products you’re offering.

There Are Now Cost-Effective Ways To Manufacture Physical Products

When you think of creating physical products, you probably imagine being forced to order by the hundred, and then find a place to store and a means to transport all of these products. However, the digital revolution has made ordering on a small scale easier, and many manufacturers now offer you the chance to quickly and easily create small batches of product. This means that you can easily use digital solutions to make the process of creating and selling physical products quicker, easier and more cost-effective.

Many Consumers Prefer Physical Products

Digital solutions aren’t for everyone, which is why the physical products market remains lucrative for many businesses. Some consumers still want physical versions of products that can be digitalised, even though they know that digital solutions could be more effective and efficient. This means that if you’re offering a digital solution, such as e-books or online notepad software, then you should consider offering a physical version as well. This could boost your sales and allow you to target a completely different market segment.

You Can Charge A Premium For Physical Products

Consumers who want physical products are usually prepared to pay a premium to get them, which means that you can easily make more profit on a physical product than you would be able to on a digital one. The expectation among consumers is generally that physical products take more effort and skill to create than digital ones, even though that’s not necessarily the case. You can use this to your advantage by charging extra for a physical version of a product than its digital counterpart.

Physical Products Often Come Back Into Fashion

In many cases, physical products are replaced by a digital solution, but then come back into fashion later. One classic example of this is resurgence of vinyl record buying that started in around 2018 and still shows little sign of slowing down. In 2019, vinyl even outsold its predecessor, the CD, for the first time in 40 years. This proves that trends in buying aren’t driven exclusively by convenience, and that many consumers follow fashion as much as they do digital trends. For businesses offering physical products, you’ll need to stay ahead of the latest market developments in order to profit from such a trend, but this hard work could potentially prove incredibly lucrative.

Physical products might seem outdated, but they’ll always be a market for certain solutions. As such, start-ups should be aware of the options they have and work to provide their customers with both the physical and digital solutions that they expect.

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