In tightly packed e-commerce niche markets, many Direct to Consumer brands find it taxing to market and sell their products. Unable to move and expand their business, they end up stagnating. The more profitable the world of e-commerce becomes, the more ruthless it turns out to be for such brands. Eventually, in these instances, brands find themselves gasping for breath to establish a foothold on the market.
The odds are slim for the D2Cs to gather funds when they are looking out for support, but if they search deeper, they are sure to find brand aggregators. Aggregators like Ergode seek to give these D2Cs a platform in the e-commerce industry through brand aggregation. When brands find a marketplace environment challenging to survive, Ergode picks them up!
Based out of Texas, Ergode is a brand aggregator that takes brands under its wings and helps them thrive. In its current capacity alone, the company has grown brands from fashion, digital homes, artifacts, sports apparel, and the polypropylene industry overseas. It knows that these visionary brands face disappointments due to a lack of advanced opportunities. As an aid, Ergode provides them with the potential resources and opportunities to perform.
The Way Aggregators Prop Up Brands
Ergode's founder and CEO, Rupesh Sanghavi, introduced the aggregation model after identifying the potential of this nascent industry. In a year, over 305 million startups are created, but not all are successful at scaling up. The aggregators help the startups refine their operational structure and place them successfully on an e-commerce platform. The aggregators work on multiple parameters, such as branding, technology upgrades, finance, resources, et al.
The very first aspect they take notice of is brand positioning. When new brands enter the market, their brand image lacks discernibility. Acknowledging this, the aggregators head towards positioning the brand in the target market, thereby establishing a foothold in the marketplace. Then they spearhead filling up the process efficiency gaps through AI-powered technology. By leveraging their efficient tools, the best aggregators streamline processes, make sales forecasts, introduce martech, and engage the target audience. They know that robust technology can improve a brand tenfold and give life to its operations. The second a firm gets off to a great start in the market, an aggregator intends to relieve the brand owner from scaling up all alone in the presence of financial constraints. An SMB who gets on board often ends up expanding its financial capability in the market.
Brands exist to connect consumers to products and services. Somehow, aggregators (such as Ergode) too carry the same vision of "Providing convenience to our customers by converging global skills, technology, and products." Ultimately, the vision gets aligned when the two work together to serve one goal. In the quest to achieve the shared goal, aggregators work fingers to the bone, striving to remain ahead of the curve. Their role is more of a brand fashionist, anticipating the coming trends and ensuring they're on top of everything. But this doesn't come easy! To be the most eligible ones, the big names in the aggregation industry have to bulk up in many ways, one of which is being financially sound. Thankfully, most of the time they are backed by a series of fundings. To date, aggregators have raised $12 Billion, creating a massive pipeline for future deals. Assuredly, when brands and the market witness such a swift growth of the aggregation model, they become sure of it being the future of the e-commerce industry. Something that Rupesh foresaw years ago!
Today online players like Ergode are not only popular for elevating SMBs but also for enveloping D2C and e-tailers in the same way. The intent is to infuse aggregation strategies into all areas of e-commerce. Such a wholesome eco-system is preferred by every millennial brand and GenZ consumer.