Think you’ve got a top-notch product but struggling to distribute it in the correct channels? Here, BD talks to some of the country’s top beauty experts about the steps for scoring superior distribution for your brand.
Getting distribution in a major retailer
There are four major steps for getting your brand distributed in a major retailer:
First step - knowledge is power. “Take the time to understand the retailer and their customer needs; you need to illustrate why their customer group is going to purchase your product and why it is beneficial for them to work with you,” says Biccari Holdings managing director Amanda Miller, Australian distributor of Carmex lip balm.
Second step - be prepared. “Think about things from a retailer’s perspective and provide them exactly what they need to know. Retailers see hundreds of suppliers so it is important in your pitch and meetings to be direct and to the point, showcasing exactly what they need to know rather than trying to ‘sell the dream’,” explains Miller. Alpha-H PR/marketing coordinator Keri Benvin adds, “Establishing a relationship with the retailer is paramount. Allow them to know who you are and what you can offer them.” Alpha-H recently invested in a professional brand portfolio to ensure their brand is accurately showcased.
Third step - persistence is key. “Deals take time to negotiate. There will always be some wins and losses along the way, but it is essential to believe in your product and continue to liaise with retailers, even if you are knocked back the first time,” reveals Miller.
Fourth step - be supportive. “Show [the retailer] support and build a positive and long-lasting relationship with them. Show your commitment through above the line and below the line marketing as this makes their job easier and paints you in a positive light,” says Miller. An example of this is listing your retailers in advertising or supporting their sales initiatives on your social media platforms. “Generally, at the end of the day, if you’re supporting them, they’ll support you,” explains Miller.
Identifying the right retailer or distribution channel
First and foremost, brands need to understand their target market. “Many factors will contribute to a distribution strategy. These include: What sort of product is it and who is it for? Is the product something that would be suitable to purchase in a convenience store? Is it a prestigious brand that would work well in a higher end department store? Is some level of advice or trial going to benefit? Are there any specific regulatory requirements for the product and brand?” says Ego Pharmaceuticals marketing services manager Stephanie Clayton. A brand should also make sure it has the resources available to cater for the scale of demand for a major retailer.
When it comes to looking for a retailer or distributor, understanding your brand’s business objectives should be the guiding light. Having a clearly defined brand and product strategy is essential to the success and growth of any product. “You need to understand your target customer - what makes them tick, where they like to shop, their purchasing behaviours, what they need from products similar to yours - before you determine your distribution and retail strategies. Once you have a solid understanding of your target market, you can then look at what distribution channels correlate with their behaviours and begin plotting who you would like to be your primary and secondary retailers,” explains Miller.
With a few major companies dominating the Australian retail market, finding the ‘ideal’ retailer may not always be possible. It is important to look at the opportunities and challenges within each retailer, according to Miller. For example, the category in which your brand falls may be heavily saturated within a particular retailer so may not be the best distribution channel for you. On the flipside, an opportunity may present itself if a retailer doesn’t already offer a category that fits your product.
How to gain further distribution in Australia
It’s all about networking, networking, networking. “Approaching retailers and making the time to actually sit down to discuss the success of your brand and the multiple opportunities for them is crucial when growing your distribution network. It is important to really highlight and showcase marketing plans and strategies, initiatives you’re working on and most importantly, the ROI from successful promotional and marketing campaigns, current real retail sales data and sales forecasts for the next season or period,” reveals Miller.
Relationships with consumers and healthcare professionals can also help with gaining further distribution. Because Ego is strongly aligned with healthcare professionals such as dermatologists and general practitioners, it is often approached to distribute some of its products in clinics. The company has many key account representatives that work with pharmacies to ensure Ego meets each retailer’s key needs.
Alpha-H has found that as awareness about the brand increases, so does the number of enquiries from distributors. TV networks are central to the brand’s distribution as they have allowed for maximum exposure on a national/international scale. Alpha-H is distributed through TVSN in Australia. The brand has also recently entered into a distribution partnership with major Australian distributor BLC. BLC will nurture and invest in the profitable and personal growth of Alpha-H, leading to further distribution opportunities in Australia.
Making the approach
There are different ways for brands to get in front of distributors. For Carmex, Miller likes to take the personal approach. “I think it is important to have a personable relationship with your current and prospective retailers, however, this isn’t for everyone. There are many ways to market and increase your business; a secondary approach to this is using reputable brokerages to assist,” reveals Miller.
At Priceline Pharmacy, brands and suppliers adopt different methods to get in front of the distributor. “There are a number of ways potential suppliers can make contact to get their brand distributed within Priceline Pharmacy. Email and mail are still common ways for suppliers to make contact with our buyers. Some people ring our customer service centre, and it’s becoming more common for potential suppliers to make contact with our buyers via LinkedIn,” says Priceline Pharmacies communications manager Gabrielle Tully.
Having been in the industry for 27 years, Lee Fran Beauty Imports [LFBI] is no stranger to getting brand distribution enquiries. While their website brings in a lot of requests, having a good relationship with the trade commissions from the countries it imports from has seen the commissions passing on all relevant enquiries to LFBI.
Being head-hunted
While it’s definitely a good idea for brands to be proactive in gaining further distribution, there are instances where distributors flip the coin and instead approach the brand. At Priceline Pharmacy, new brands are sourced in a number of ways including trend trips overseas, industry websites, news channels, social media, internet research and even from customers’ enquiring about products they’ve seen that are then investigated and sometimes stocked.
“Our buyers are always on the lookout for the latest and greatest to satisfy our changing customer needs. It’s important that we stay relevant and on trend. Priceline Pharmacy buyers do a lot of research on trends and subsequently search for brands that suit that trend. Many of our buyers travel to fairs to search for new product opportunities and often we work collaboratively with suppliers to bring products to Australian market first,” explains Tully.
LFBI attends expos around the world and if something fits in with the company brief, LFBI will set up a meeting. “Some of our current ‘best’ relationships have come from this approach,” reveals LFBI director Lee Blackett.
At Myer, the department store’s buying team are constantly looking around Australia and the world for new brands and designers. They use a range of channels and methods to gain new brands including working closely with existing suppliers.
