COVID-19 Vs Crowdfunding

2020 was a difficult time for everyone, with businesses constantly reacting and battling to stay agile in the wake of many challenges. At Draco Studios, crowdfunding is a large part of our strategy and the pandemic has changed how industries that rely on crowdfunding operate. We have learnt many lessons in 2020 as a result of COVID-19 and we will take these forward into 2021.

  • Distribution. The international trade network has been seriously affected and due to the reduction of flights, there is an over demand for air transport. We have found that this can make it difficult to get the products to the final players, causing delays. To mitigate this, we have improved our planning strategy and created alliances with local distribution companies.

  • Increased shipping costs. As distribution became more difficult, increased demand led to shipping costs rising. Particularly with regards to air freight. Increased costs either mean a reduced margin or a higher cost for your customer, with neither being ideal. We are learning to adjust our shipping plans or reroute the goods in order to reduce the effect of these unexpected costs to the business.

  • Manufacturing backlogs. Although manufacturing companies have started to reopen, many of them, especially in China, have a backlog in their production that can translate into delays in delivery. This means its particularly important to foster good relationships with your suppliers. You need constant and open communication in order to manage expectations; and find the most effective solution for your company.

Last year we really learnt that communication with your backers is key. It doesn’t matter if your Kickstarter campaign is already live, is about to launch or has already ended, constant communication with your backers is essential. We believe in being transparent and really think it’s important to announce any problems that have arisen that will affect delivery times. Proactively keeping your community informed will help with continued trust and lead to future investment in the company.

We know that we have more lessons to learn, particularly with the ambitious plans we have. 2021 is going to be a very exciting year for Draco Studios, and we are sure it will be full of learning and challenges to overcome. In the meantime, stay safe and keep playing.

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