Online retail in Australia continues to go from strength-to-strength. In the year to January 2015, National Australia Bank’s Online Retail Sales Index found Australians spent a record $16.6 billion online. What’s more, Roy Morgan Research found 7,630,000 Australians aged 14+ (almost 40 per cent of the population) bought one or more products via the internet in an average four weeks.
As a result, there’s little surprise beauty brands are all vying for a piece of the digital e-store pie - be this via their own channels or through an established beauty online store (or both). But with so much competition out there, trying to gain distribution in a beauty online retailer can be incredibly hard. Much like with bricks and mortar stores, online beauty retailers have strict guidelines in place on what brands they distribute.
To discover more on how to get an online beauty retailer to consider distributing your brand, we sat down with the directors of two of Australia’s biggest e-stores - Adore Beauty founder and director Kate Morris and RY CEO and director James Patten...
What do you look for in a brand?
Morris: High quality packaging and design are just as important as product quality. We look for brands that sit well within our stable of prestige, high performance/professional, niche and cult brands. We also regularly survey our customers as to what brands they would like us to stock, so it helps if your brand has built up some consumer demand.
Patten: In 2016, RY are focusing on niche brands that have the potential to be the next best thing: think organic, ethical, on trend. If the brand is trying to break through a crowded market, we like to see a unique offering.
How do you source brands?
Morris: We take brand submissions at any time of year, and ask brands to send in their product samples and marketing materials for consideration. We also reach out to brands directly when we become aware of a brand that would be a great fit, either via PR/social media or via customer request.
Patten: We are constantly watching beauty bloggers, big social influencers and the media. A brand can just explode out of nowhere now and our platform offers a great opportunity to reach a large group of targeted consumers.
What are the five top tips for a brand wanting to get distribution at your company?
Morris:
1. Don't spend all your money on product formulation and then skimp on the packaging. Every part of the brand needs to be of the same quality.
2. Don't send sachet samples or decant into a sample jar. We need to see the finished product!
3. An email to follow up is fine, but calling three times a day is probably not constructive. We will definitely be in touch if your brand is a good fit.
4. Have a clear point of difference and brand identity.
5. Show us how you're currently marketing/promoting the brand and what your future plans are.
Patten:
1. Don't offer me the same specials as my competitor - keeping it fresh for us keeps things fresh for the customer.
2. Make sure there is enough margin that we can support your brand with marketing and content.
3. Tell us the story of your brand. Be personal. Don't just send samples and a price list. We are invested in the brands we stock and we want to hear their unique stories. We built our business from the ground up so we want to support people that are also on the same journey.
4. We want to work with you as a partner, so offer an opportunity to be exclusive partners online.
5. Keep knocking on the door. Because we said ‘no’ in December doesn't mean we will say ‘no’ forever.