Should Quirky open retail stores ?

An article in Forbes (May 27,2013) features “Quirky” (http://www.quirky.com/) – an online new product development company that uses crowdsourcing to take product suggestions to develop and manufacture products for sale at retailers. Quirky starts with ideas from inventors, then chooses those to focus on, then uses the community of designers to improve the product, then launch the product and market the product to retailers. The inventor is given 42% of the royalty (which is 10% of revenue), the remaining is shared by the community that helped create the product. But the rate of new products being developed is three a week and the retail pipeline cannot handle this output. So the company is planning to launch retail stores to bring products to market. Is this foray into retail an appropriate supply chain initiative for Quirky, or should the company slow down its product development to match market needs ? Given the push model of product development without a market evaluation of volume and pricing, are products that are “cool” more likely to be developed than products that have a market need ? Or is this the future of product development ?

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About aviyer2010

Professor
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