Report: Product Drop Strategy

Placing brands at the center of culture, commerce and community, the drop has established itself as an effective branding tool in IRL and digital environments. As brands consider today’s retail landscape, where omnichannel and cross-global shopping have become common behaviors, the role of drop has taken on new importance in helping not only to differentiate experiences brand, but also to establish a continuous exchange of value with consumers.

To cultivate community, inspire loyalty and respond to this new value proposition, innovative brands and retailers are repositioning drop as a multi-pronged touchpoint, leveraging the model as a method to continuously reward consumers for their engagement. . For brands and retailers, this comes to life through dedicated channels that combine live drop-in events and daily programming, services and tools that provide 1:1 support for purchasing limited-edition items. on behalf of consumers, and virtual deposits and tokens that carry both digital value and tradable physical goods and services.

In this report, PSFK researchers identified six strategies that retailers and brands can leverage when developing their own services, platforms, and tools to support next-generation drop experiences. Drawing on the best examples of innovation in the market, understand how leaders are leveraging cross-channel activations to engage consumers, sell products, and ultimately build loyalty.

Featured Trends

Falling products around the world

In an effort to generate excitement around newly launched or limited-edition products while simultaneously expanding access to a wider audience, companies are replicating the experience of dropping off products in the virtual world. As part of these activations, connected shoppers have the opportunity to be the first to discover and purchase exclusive digital and physical products, as well as socialize with other fans, influencers and brand representatives. In addition to driving sales, this approach has the added benefit of driving increased engagement and interest in metaverse brand experiences.

Dedicated deposit channels

Rather than taking a one-off approach to product deliveries, retailers and brands are creating dedicated platforms and channels to host parties, events and social occasions on an ongoing basis. Moving the drop experience beyond a microsite or pop-up activation, these spaces, where drops can be spaced out and promise a continuously updated selection, allow brands to connect with their fans and consumers via livestreams, invite consumers to join events, and feature limited-edition additional content or benefits for those who tune in at a specific time.

The Gout Concierge

By combining the kind of 1:1 support typical of luxury retailers with the drop-in experience, brands and solution providers are developing tools and services that can act on behalf of consumers. From dedicated stylists to payment infrastructure providers and bot creators, consumers are embracing a new kind of service provider – both human and digital – to source hard-to-find items, conduct transactions and offer more convenient overall experience.

James T. Quintero