Brick-and-mortar retailers are in trouble. Stores like Sears, Kmart, Subway, Bon-Ton, Toys R Us, and Foot Locker have announced that they will be closing down some of its stores in 2018. That said, E-commerce is growing at a rapid pace and the trend is set to continue for the coming years. It’s projected to account for 17% of retail sales in 2022, according Forrester Research Inc.
Amazon’s revenues grew to approximately $51 billion during the first quarter of 2018. According to recode, Amazon was nearly half of the U.S. e-commerce sales in 2017. However new players are entering the market. For example, Shopify, offers an e-commerce platform that allows anyone to sell easily online. The company projects it will reach $1 billion in revenues this year. As of August 2017, it had over 600,000 merchants. Not too shabby when you consider its been in business for less than 15 years.
Enhancements in technology have made it easier for businesses to build a brand. For example, platforms like Amazon and Shopify create marketplaces for businesses to sell. While platforms like Instagram, Facebook, and YouTube allow them to get the word out to millions of people.
With the right platform, logistics and distribution become a breeze. Crowdfunding platforms like Indiegogo and Kickstarter are eliminating corporate politics, allowing consumers to decide if a product is worthy of the marketplace.
Kickstarter has raised more than $3.7 billion for its users since 2009, according to the company website. It just goes to show that consumers are willing to support up-and-coming companies if its products and innovations are better. No longer are we relying on corporate executives to decide if a product is “suitable” to hit the shelves… consumers are putting the power back in their hands.
Brand loyalty is taking second fiddle to innovation. Amazon knows this all too well, the company sells more than 70 of its own private-label brands.
The next big thing in this space will pleasantly surprise you. As the evolution of e-commerce is about to reach a whole new level.
Xspand Products Lab, Inc (NASDAQ: XSPL)
The company has developed a platform that allows inventors to take an idea and help put it into production seamlessly. It gives consumers what they want, the best and brightest products right to their doorstep, fast and easy.
Xspand has an experienced in-house team of product developers. In addition, it has manufacturing facilities in both the U.S. & China. It even works with inventors to find the best sourcing and competitive prices. With access to warehouse space nationwide and a full-time logistics team Xspand is fully capable of handling fulfillments. Now, no matter how good a product is, it needs to be marketed and sold in order to reach a high level of success. That’s why its in-house sales and marketing team works closely with inventors to make sure everything goes right. Xspand is leaving nothing to chance.
This allows innovators to be introduced to buyers that they normally wouldn’t have met. A win-win situation for both parties. Xspand’s team analyzes and validates intellectual property from around the world.
Xspand Products Lab, Inc (NASDAQ: XSPL) Teams Up With Edison Nation, LLC
On February 26, 2018, Xspand entered into a strategic partnership agreement with Edison Nation, LLC, a consumer product development consulting firm that helps entrepreneurs commercialize ideas and inventions. Edison provides independent inventors both turnkey invention development solutions and access to an online innovation marketplace.
Through the Edison Partnership, the company receives around 47 idea submissions daily, according to the firm’s April 2018 Investor Presentation.
Edison Nation is behind some of the hottest As Seen On TV products over the last couple of years. It has done over $200 million in sales worldwide, according to Edison’s website. The company has worked with and established relationships with Bed Bath & Beyond, Amazon, Rite Aid, Proctor and Gamble, Home Shopping Network, Walmart, Pet Smart, The Home Depot, Target and more.
Some of its best selling products include: Eggies, Party in the Tub, Mister Steamy, Perfect Bacon Bowl, Hot Huez, Emery Cat, and the Gyro Bowl.
Xspand Products Lab, Inc (NASDAQ: XSPL) — New Company With A Rich History
Xspand was incorporated in 2017, however its businesses have over 50 years of development, manufacturing, and logistics experience. They include two wholly-owned subsidiaries: S.R.M. Entertainment Limited (SRM) and Ferguson Containers, Inc.
SRM was incorporated in Hong Kong in 1981, and acts as Xspand’s entertainment products division. It creates exclusive products for amusement parks. In addition, it develops and distributes party-related and crafts-related items to retailers across the globe. SRM also develops product strategies that allow product concepts to come to market.
Through SRM, Xspand intends to acquire and develop small brands. The company’s goal is to acquire ten or more small brands per year for the next three years, starting in the second half of 2018.
SRM’s customers include:
Ferguson Containers, Inc acts as Xspand’s packaging division. Xspand leases a packaging and logistics center in New Jersey, where it manufactures and sells custom packaging. Ferguson was incorporated in 1966, and its leadership brings more than 100 years of experience to the table.
This part of Xspand’s business could be a key driver for its future revenue growth. Demand for packaging for e-commerce products is projected to grow to $1.1 billion by 2020, according to AICC.
Xspand Products Lab, Inc (NASDAQ: XSPL) — Synergy A Key Driver
Xspand is positioned to take full advantage of the boom in e-commerce. The company intends to package SRM’s products at Ferguson’s facility. Ferguson’s ability to create unique and custom packaging will give SRM products greater awareness, leading to potentially higher revenues. The strategic partnership agreement with Edison compliments Xspand’s business model.
To date, Xspand has been able to show gross profits, per it’s filings to the SEC.
Xspand has revenue relationships with Fortune 1000 clients like Disney, Universal and Sanofi. The company believes it can leverage its expertise into the crowd funding space, which is set to grow to $18.9 billion in 2021.
Xspand Products Lab, Inc (NASDAQ: XSPL) — Seeks Low Risk Ventures That Have Large Upside
By acting as either an agent or a principal, the firm takes on potentially small risk with large upside. As an agent, Xspand will license ideas to partners, collecting a 50% licensing fee. As a principal, it will employ its resources and capital, in return participate in profits sharing.
Xspand uses a proprietary algorithm to analyze opportunities in e-commerce. That means it doesn’t have to employ huge amounts of capital to validate an idea and show proof of concept. In addition, its able to filter data to match opportunities that best leverage its existing resources.
Xspand Products Lab, Inc (NASDAQ: XSPL) — Primed For The E-Commerce Surge
Xspand has the ability to manufacture more than 20 million units per year. It is extremely efficient by offering lower warehouse costs and less waste. The company has access to factories in China which allow them to keep product and development costs down. Not to mention, its proprietary algorithm helps increase its chances on finding a successful product or brand.
The company has an award-winning product development team, with over 50 years of success designing, manufacturing and selling cutting edge products. It utilizes the latest 3-D printing technology to create prototypes in a cost efficient manner. It’s no surprise that it has designed thousands of new products, taking a simply idea and transforming it into a product that you might see online or a retail shelf.
If you give people an opportunity to succeed and prosper they will take it. Businesses like Kickstarter, Shopify, and Amazon have grown to be industry giants. This shift in thinking has been going on for years now.
This leaves the door open for Xspand Products Lab (NASDAQ: XSPL), as it offers a unique opportunity to innovators. Potentially carving itself with a new niche in the marketplace.
Make sure to do you own due diligence before investing and please read the full disclaimer below.
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