Artists and their businesses are becoming more entrepreneurial through the democratization of the internet. Some aspire to follow in the mogul footsteps of Rihanna and her Fenty lifestyle brand or Jessica Alba and the Honest Company.
Multiple intermediary companies have recently exploded by taking internet personalities and launching consumer product brands via e-commerce or brick and mortar on their behalf, such as Brandable.
Even with surging growth, e-commerce still only accounts for ~10% of retail sales, and is predicted to still be under 15% by 2021. In 2017, Amazon had 44% of the total e-commerce pie (still only 4% of retail sales).
With limited shelf space and immense hurdles in selling a brand vision and corresponding products to brick and mortar retailers, most artist driven businesses will only be able to tap into 10-15% of the retail market (via e-commerce) – That’s not to say the potential is much higher because most of these artist-driven businesses would not do very well in brick and mortar.
Many ideas (fragrance, cosmetics, etc.) are becoming saturated quickly – Artists and their teams get to be more savvy and innovative in the differentiation of their product offerings to create value for the fans, their customers.
The most important thing an artist can do is cater to its 1000 core fans, but if you want to generate success at the level of the companies listed above, then you have to find a way into the hearts and lives of more people.
As all size artists and their teams consider revenue generation potential on product based businesses, this graphic posted by Moe Shalizi yesterday is a reminder of what it takes to generate $1,000,000 or add zeros to extrapolate what’s possible…