Cultivating relationships with small businesses and limiting e-commerce sales has proven successful for Dime Bags Storage.
Colorado Springs, Colorado, July 29, 2015 (Newswire.com) - In the digital age, it’s hard to find a brand that can’t be bought at a myriad of locations on the web. In fact, web based sales seem to have become a critical component of most business models with studies indicating that by 2017, web sales will account for 60% of all US retail sales[1]. For Dime Bags Storage, quite the opposite is true.
The brand, started in 2007 as a response to low quality hemp bags flooding an emerging market, focuses much of their business model on building relationships with brick and mortar retailers who choose to carry their bags rather than developing a large web presence. In other words, you won’t find the signature hempster bags available on internet retail giants like Amazon and E-Bay.
Strong local economies lead to a strong national economy
Tim Morrissey, CEO, Owner
“We want end consumers to go into their local brink and mortar retail location for our products” CEO Tim Morrissey stated. And with the bags located in 1000's of stores across the country and abroad, finding a shop close by shouldn’t be a problem. “When an end consumer goes into their local shops they don't just buy our products, they buy a pack of papers, a shirt, or other cool products. In turn, they are supporting their local economy."
Strengthening local economies is just one component of their brick and mortar model. Studies show that there is still a preference for shopping in store among “high touch and feel categories” such as apparel and accessories, even when the product is discovered online[2]. Further compounding the success of Dime Bags strategy, is its confrontation of the idea of the overwhelmed online consumer who becomes so exasperated by the multitude of channels to buy a product that they ultimately give up on buying the item all together.
Dime Bags Storage is on to something with their model. From the cultivation of relationships with brick and mortar locations to the confrontation of the overwhelmed online consumer, the brand has developed a business model that has not only led to it becoming a powerhouse in the hemp and alternative smoking industries but one that has provided the critical foundation for a lasting company.
[1] “U.S. Cross-Channel Retail Forecast, 2012 To 2017.”; Forrester Research, Inc.; October 29, 2013
[2] “On Solid Ground: Brick-and-Mortar Retailing is Foundation of Omnichannel Retailing”; A.T. Kearney Inc; 2014
[1] “U.S. Cross-Channel Retail Forecast, 2012 To 2017.”; Forrester Research, Inc.; October 29, 2013
[2] “On Solid Ground: Brick-and-Mortar Retailing is Foundation of Omnichannel Retailing”; A.T. Kearney Inc; 2014
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