Crowdfunding è il nuovo modello di shopping.

PRETAILWhy consumers now love to SHOP for products and services at concept stage.
trendwatching.com’s free monthly Trend Briefing May /June 2013
trendwatching.com/trends/pretail
* PRE-TAIL is a registered trademark of The Integer Group. Used with kind permission.

PRETAILwww.trendwatching.com 2
Definition
A mode of consumption that sees
consumers treat crowdfunding platforms as
the new shopping malls. Why? Because
that’s where current consumer demand for
more innovative, exciting and unique
products and services is being served better
than anywhere else, by an army of
entrepreneurs and start-ups.
In our Trend Briefing on PRESUMERS, we highlighted
how many consumers are clamoring to support, be
involved with, and fund products and services pre-launch,
fueling a burgeoning crowdfunding movement.
Now make way for a little less consumer involvement,
and more straightforward shopping in the pre-launch
arena, i.e. PRETAIL.

Data from market-leader Kickstarter
confirms the incredible growth and
global scale of crowdfunding:
In 2012, donations & reward-based
crowdfunding (of which PRETAIL is
a part), grew 85% to USD 1.4 billion
(Massolution, April 2013)

1. THE EXPANDING GLOBAL BRAIN
Here’s what is fueling PRETAIL, in more detail:
Crowdfunding has unleashed the GLOBAL BRAIN (the collective creativity,
entrepreneurialism and intelligence of thousands of individuals and start-ups around
the world) on consumerism.
And via the mechanism of funding pre-realization, those platforms mean that anyone
with an idea can present that idea to consumers, who can then PREchase it.
For the first time ever, then, the diversity, inventiveness, and sheer number of
innovations on offer in the consumer arena can actually match the imaginings
of consumers. That’s a crucial new equality of supply and demand: one that did not
exist when consumption happened in traditional offline/online stores.
Next? That would of course be consumers pro-actively suggesting to the
GLOBAL BRAIN what it is they would like to see introduced/built. And then
some of them may try it to do themselves, resulting in the ultimate convergence
of by and for. Just look at MakeThatThing.com below. And if that reminds you of
co-creation, or CUSTOMER-MADE, you’re right, but keep in mind co-creation was
always more about brands seeking ideas/help from consumers, while this time it
will truly be about consumers demanding what they want from entrepreneurs/ the
GLOBAL BRAIN.

2. PERFECT MARKET FIT
Consumers indulging in PRETAIL are driven by the thrill of being early, mixed with
the thrill of finding a truly exciting or useful or relevant product, especially if it’s
something quirky or so niche that it would have never made it down a traditional
brand’s production line.
And because the aforementioned GLOBAL BRAIN can present an endless array of
innovations to consumers, at near zero cost and zero risk, the PRETAIL market is
near infinite.
Furthermore, as consumers will only PREchase the innovations they want – and so
ensure those ideas are realized* – and ignore those they don’t want, it’s as close to
a perfect market as economists can imagine.
* Also, the instant feedback from eager PRESUMERS helps innovators see very
rapidly whether or not their product idea is serving the desires of consumers. This
feedback helps them tweak their product idea, and can help ensure that even
initially-wide-of-the-mark products are a perfect fit when they are realized.
Pictured: Magic Cooking Gloves, successfully funded in January 2013.

3. INSTANT TRUST
The trust barriers that would once have stopped consumers from embracing
PRETAIL are fast being eroded to nothing.
In a consumer arena made transparent by online connectivity, there is no hiding
place for creators who fail to meet their promises. Consumers know this, and they
know that creators know.
That means consumers can have FUTURE FAITH* that most creators will deliver
the products/services they are promising. Yes, that leaves room for some risk. But
consumers will accept the tiny risk of all-out loss as a part of PRETAIL. Even if
an innovator does disappear with their money, the abandoned PRETAILERS find
themselves part of a ready-made community committed to the funding of a particular
product: they can simply find another entrepreneur to serve their pre-built demand.
(And the community is bound to go after the original (non)-creator, too ;-)
* See our Trend Briefing on CLEAN SLATE BRANDS for more on FUTURE FAITH.
Pictured: France-based Overade’s folding bicycle helmet, successfully funded in
February 2013 on Ulule.

4. FROM PRETAIL TO ETAIL TO RETAIL
The next (and final) step for successful PRETAIL products: becoming absorbed by
traditional, mainstream retail.
In fact, the new breed of PRETAIL sites (such as Christie Street and Crowd
Supply featured below) are already blurring the boundaries between PRETAIL and
retail by making it easy for customers to buy successful projects, even long after
they’ve reached their funding targets (by comparison Kickstarter doesn’t offer any
e-commerce facilities, requiring customers to track the products down elsewhere).
And we’re already seeing products make the leap from crowdfunding platforms all
the way to physical retail, on a global scale too: witness the Dim Sum Warriors
comic book below, launched on Kickstarter, now available in Singaporean book
stores.
So watch out for the first true PRETAIL smash hit, bought (instantly) by millions
of consumers, from ‘normal’ stores, with most not knowing, or indeed even caring
about its backstory.
Pictured: The tsaiclip, which following a successful Kickstarter campaign in 2011, is
now stocked by retailers in the US, France and Hong Kong.

While there are PRETAIL products succeeding
in SCA (witness the Motriz bike shelf example
below), this remains a niche trend in the
region for two main reasons. First, many
(less-experienced) consumers still find thrills
in buying new products the traditional way,
as they haven’t been deeply immersed in
years of hyperconsumption. Second, thanks
to SCA’s strong collective social culture, the
crowdfunding arena is more focused on projects
that benefit society, rather than being a
significant PRETAIL destination. Yet ;-)
Many Asian consumers, especially in China,
don’t have high levels of confidence in
e-commerce transactions. Which is why
one of leading Chinese payment provider
Alipay’s key innovations was the practice of
holding funds in escrow until both parties
are satisfied. Overcoming these fears, and
convincing often-skeptical customers to
PREchase products – that haven’t even
perhaps been manufactured yet – will be key
for any aspiring Asian PRETAILER.
PRETAIL in South & Central
America (SCA)
PRETAIL in Asia Pacific
PRETAIL AROUND THE GLOBE

Launched in March 2013, Crowd Supply partners
with product creators, offering advice on a suitable
funding target and production logistics, and allowing
site users to PREchase ideas. Meanwhile, creators
who have already crowdfunded their products – on
Crowd Supply or elsewhere – can make their product
available for pre-order or conventional purchase. In
April 2013, Pakems Foldable Boots, a lightweight
boot designed to be easy to carry while skiing, were
available to buy from USD 60.
Crowd Supply: A PRETAIL
platform and an etail store
Launched in December 2012, Christie Street is a
product-focused crowdfunding platform which aims
to make PREchasing near risk-free. Creators who
submit an idea to the site are audited to ensure they
are legitimate, and their idea feasible. Meanwhile,
funds are released to creators in stages, ensuring
project supporters can receive a partial refund if a
funded product fails to materialize. As of April 2013
the DoorBot, a wifi-enabled doorbell that streams
video to a smartphone or tablet, had received funding
of USD 395,660 (against a target of USD 250,000),
and is due for delivery in July 2013.
Christie Street: Crowdfunded
hardware platform that aims to
help inventors
Examples //
PRETAIL PLATFORMS
When in September 2012 Kickstarter tried to move away from becoming a PRETAIL destination with its
‘Kickstarter is not a store’ blog post (which announced tightening listing rules to protect buyers from
unfinished and unrealistic projects), other sites quickly stepped in and positioned themselves as PRETAIL
facilitators and shopping destinations:

Founded in 2009, but worth revisiting for this briefing,
Quirky was a pioneer of what it terms ‘socially
developed products’. Product creators submit their
idea to the Quirky user community, who can suggest
changes. Next, users vote on the best product ideas,
and – based on these votes and other factors – Quirky
staff choose a number of products to go into production.
Stem, a device that allows the user to spay juice
straight out of a citrus fruit, retails on Quirky for USD
4.99.
Quirky: Store for “socially
developed products”
Wrappled (launched February 2013), Outgrow.me,
and Tiny Light Bulbs are online storefronts for products
that have reached their funding target on crowdfunding
sites such as Kickstarter, Indiegogo and others. By
aggregating successfully funded products, these
sites inhabit the space where PRETAIL merges with
conventional etail. The NanoLeaf LED lightbulb – which
makers claim is the most energy efficient lightbulb in
the world – had raised over USD 270,000 on Kickstarter
by March 2013 (against a target of USD 20,000), and is
now available to pre-order via Outgrow.me.
Outgrow.me,Wrappled&Tiny
LightBulbs:One-stopshopsfor
successfullycrowdfundedproducts
PRETAIL PLATFORMS

Make That Thing, launched in February 2013 by
TopatoCo, a web comic merchandise etailer, aims to
help creatives handle the fulfillment side of successful
crowdfunding initiatives. One of the first service’s projects
was a print version of The Tomorrow Girl: Dresden
Codak (a popular web comic) that raised over USD
530,000 from 7,565 backers.
Make That Thing:
Production agency for
crowdfunded projects
PRETAIL PLATFORMS
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In November 2012, Singapore-based digital comic
book Dim Sum Warriors successfully raised over
USD 18,600 on Kickstarter, allowing the team to
publish its first print graphic novel. The books are now
available in both US and Singaporean bookstores and
comic shops.
Dim Sum Warriors: Kickstarter
project available in Singapore
bookstores
During December 2012, a total of 5,622 Kickstarter
backers pledged USD 419,472 – far surpassing the
initial goal of USD 50,000 – for a WakaWaka Power,
a pocket-sized solar powered station capable of
charging smart phones and tablet devices after one
day of sunlight. WakaWaka plan to manufacture
the charger parts in earthquake-hit Haiti, donating
one WakaWaka solar powered lamp to the local
community for every power station purchased.
WakaWakaPower:Solarpowered
chargerandLEDlight
Examples //
PRETAIL PRODUCTS
Now, clearly there are many thousands of PRETAIL products currently (or soon to be) available to buy
online if not in stores. So here’s just a small selection of some that have been delighting customers:

The Good Night Lamp is a family of wifi-connected
lamps where, when the larger model is turned on
and off, the companion lights also turn on and off
in unison, wherever in the world they are located.
Despite the Good Night Lamp failing to reach its
financial target on Kickstarter in January 2013,
the product attracted enough attention to proceed
to production. Orders are scheduled to ship in
September 2013.
Good Night Lamp: Wifi-connected
lamp turns on and off companion
lamps in unison, no matter where
they are located
Developed to promote responsible drink driving in
the US, the Breathometer transforms smartphones
into breathalyzers. The portable plug-in device fits
into any smartphone’s headphone socket and, when
blown into, alerts the user to their blood alcohol
concentration through the app. To the end of March
2013 over 3,000 consumers had pre-ordered the
Breathometer on Indiegogo, with shipping due to
begin in July 2013.
Breathometer: A smartphone
breathalyzer
PRETAIL PRODUCTS

SOCCKET, a portable generator that doubles up
as a soccer ball, attracted over 1,094 backers and
exceeded its USD 75,000 funding goal on Kickstarter
during March 2013. During play, the ball captures
and stores kinetic energy, that can be used to power
the included single-bulb LED lamp. SOCCKET is
currently available for pre-order through the brand’s
website.
SOCCKET:
Soccer ball generates power as
it’s played with
January 2013 saw Календарь «Новое слово
каждый день» (Calendar: A New Word Every
Day) successfully achieve its funding goal on
Boomstarter, a Russian version of Kickstarter.
Created to help preserve the Russian language, the
calendar aims to educate buyers on the etymology
and meaning of Russian words.
A New Word Every Day:
Calendar celebrates Russian
language
PRETAIL PRODUCTS

During March 2013, customizable electronic guitar
brand IG Guitars was successfully crowdfunded
via Kickstarter. 40 backers pledged more than USD
350 each to create personalized instruments with
interchangeable magnetic panels (saving a third on
the retail price) and receive official certificates and
bonus merchandise. The guitars are scheduled to
ship in July 2013.
IG Guitars: Customizable
designer guitars
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PRETAIL PRODUCTS

Fashion designer and Project Runway finalist Alicia
Hardesty collaborated with a quantum physicist and
a neuroscientist on Project X Squared, a versatile
capsule clothing collection that includes a lightweight
lab coat designed to be worn outside the laboratory.
As of mid April 2013 the project had attracted over
285 backers, with shipping estimated for July 2013.
Project X Squared:
Project X designs lab coats for
everyday wear
Karma Chakhs were successfully funded on German
crowdfunding platform StartNext in January 2013. Le
Van Bo-Mentzel, a Laotian-German furniture designer,
started the project as a result of his disappointment
at Nike’s purchase of Converse, as now the brand’s
iconic Chuck Tailor sneakers are produced by a
large multinational with ‘bad karma’. Instead, Karma
Chakhs will be produced by Fair Trade-certified
manufacturers. Nearly 400 people PREchased the
shoes (at cost price only), enabling production to
start. The shoes are due for delivery in July 2013.
Karma Chakhs: Ethical
‘alternative’ to Converse
produced by Laotian-German
furniture designer
PRETAIL PRODUCTS

In Taiwan, many families own a traditional funeral
ritual book, which documents and records the highly
ritualistic practice of mourning the deceased. Many
current versions do not follow the traditions accurately,
which inspired Taiwanese professor Xu Fu Quan to
create a correct version. In June 2012, his project –
an updated edition of Taiwanese customary funeral
rites, written for modern audiences – was successfully
funded on ZecZec (a Taiwanese crowdfunding site).
Family Rituals: A traditional
funeral ritual manual, updated
for modern Taiwanese families
Two Brazilian cycling enthusiasts created Motriz, a
shelf that doubles as a wall-mounted bike rack, that
successfully reached its funding goal on Brazilian
crowdfunding site Catarse.me in January 2013.
Motriz: Design-inspired shelf
that doubles as a bike display
PRETAIL PRODUCTS

IMPLICATIONS and OPPORTUNITIES
Anything that delights (jaded, saturated, blasé) consumers needs to be on your radar.
And PRETAIL definitely touches a few buttons. So how can any (your?) brand become a
PRETAILER?
• Give up on secrecy. No, you don’t want to share everything with the world and thus your
competitors, but why not open up your R&D, and let consumers PREchase ideas that are
in the pipeline. Worried about competitors running with your inventions? Then just make
sure you have so many of them that they will never be able to keep up.
• And yes, get consumers to present you with the ideas they want to be able to PREchase.
PRETAIL initiatives will also support your traditional sales channels. Building a community
of enthusiastic supporters will only help whip up excitement among other, more
mainstream consumers too.
• Partner with an existing creator/inventor/start-up to co-present a concept for PREchase.
Or set up your own branded platform, where creators can post their own ideas in a
particular niche (read: you and your customers’ niche).
• Look at the traditional retail landscape, and think how this will be mimicked in the
PRETAIL arena: there’s likely to be a Walmart or Amazon-style mega-mall (that
aggregates all the ideas being peddled on the hundreds of crowdfunding platforms
worldwide), as well as destination stores (who’s going to create the first luxury
PRETAILER, the first curated homeware PRETAILER, and on and on?).
Oh, and while you dive into PRETAIL and embrace the GLOBAL BRAIN and concepting
and more, we’ll be hard at work PREparing our next Trend Briefing. If you’re not subscribed
yet, please do so here »

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