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Crowdsourcing & Crowdfunding in Retail

Social media has completely changed how we shop, and now, thanks to crowdsourcing and crowdfunding, it's also changing how products are made and sold. These two concepts might sound alien, but you’ve seen them in action — whether it’s a viral design contest or a Kickstarter for the next “must-have” fashion item. But is this shift helping us as consumers, or are we just getting pulled into another social media shopping trap?

 

Have you ever scrolled through Instagram and seen a brand asking people to vote on their next product design? That’s crowdsourcing in action. Companies like Fashion Nova and Shein constantly pull ideas from their customers, whether it's through polls, comments, or influencer feedback. This can be a great thing, it means brands are actually making what people want.  


But here’s the catch: crowdsourcing can also lead to lower-quality products and overproduction. Fast fashion brands use this strategy to crank out trends at lightning speed, but that often comes at the cost of poor materials, bad working conditions, and, let’s be honest, clothes that fall apart after two washes. There’s also the issue of brands blatantly stealing ideas from independent designers.  


So, while it’s cool to have a say in what brands create, it’s important to remember that faster isn’t always better. If something seems too cheap or trendy to last, it probably is.  


Crowdfunding is another social media game-changer. Instead of big companies deciding what gets made, platforms like Kickstarter and Indiegogo let regular people fund the products they want. If enough people back a project, the creator gets the money to make it happen.  


In the fashion world, this has led to some amazing brands taking off—like Pangaia, which started as a sustainable clothing company funded through social hype. Even influencers are getting in on it, launching their fashion lines by asking fans to “invest” before a single item is even made.  


Why do people fund these projects? Sometimes it’s because they truly believe in the product. Other times, they just want to be part of something exclusive before it blows up. 


But crowdfunding isn’t always a win. Some projects never deliver on their promises, leaving backers with nothing. And let’s be honest, some of these influencer brands just put a new logo on a basic hoodie and call it innovation.  


Social media has given us more power over what gets made, but it’s also made us more impulsive. Crowdsourcing and crowdfunding can create awesome opportunities, but they also have their downsides. Before jumping on the latest trend, take a second to ask: Is this worth my money, or am I getting caught up in what's trending? 


It’s up to us to shop smart. Let’s make sure we’re backing brands that actually deliver, not just ones that look good in an ad.

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