Question

Topic: Other

How Do Consumer Brands Sell To Retailers

Posted by Harry Hallman on 1200 Points
I am conducting a research project for a software company and had a couple of questions I think you could help me with. I appreciate any input you have.

In the apparel industry brands mostly sell their seasonal designs at tradeshows. They have sales reps as well, but most business is done at the various tradeshows. My questions revolve around how several other industry brands sell to retailers.

What methods for selling and marketing do the following consumer market segments use to sell to retails? Which is the most prominent method and why do they choose to sell that way.

Sporting Goods

Gift, Novelty, & Souvenir

Beauty and Hair Care

Thank you for your help.
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RESPONSES

  • Posted by Frank Hurtte on Accepted
    For the high end Beauty and Hair Care uses distributors and stocking reps. They provide a local pick up points and delivery to the local salons who retail their product to consumers.
  • Posted by Harry Hallman on Author
    Frank. Thanks for the input. It really helps, as I am researching 5 segments and I only have personal experience in the apparel business.

    Harry Hallman
  • Posted by CarolBlaha on Accepted
    I think most industries are a mix. There are trade shows that are buying shows-- such as furniture and accessories, but not all retailers go to market. Even the apparel industry buying shows-- the reps are there to get the sale, and keep the customer buying thru the year. There is a lot of preselling and the deal is cut often before the show. People don't just show up at a show, see what they like and buy from an unknown on the spot.

    I also own a rep agency and before each major show we are out preselling. Buyers are asked by every vendor at the show to come by-- you have to be in there before hand to convince the buyer what you are offering will fit their mix. If you don't presell, they probably won't even stop by. You'll catch a few, but you'll sell a lot more by preselling. Work that show before, during and after.

    I read a statistic from the trade show org that 87% of trade show leads are not followed up on.

    I have sold the big boxes, and in all cases, the work was done at corporate and the individual stores. I have an associate who owns a sporting goods manufacturer, he does the same combo of shows and reps. The big accounts are almost all rep driven. I have a friend who's the big box manager in a home furnishing line, and they will buy-- the deal consumated before the show.

    This is a great topic for a white paper -- thanks for the idea! Feel free to email me directly with any questions.

    Carol
    Sell Well and Prosper tm
  • Posted by Harry Hallman on Author
    Carol:

    I appreciate your insight on this topic. It is helpful to get information from folks like you and Frank ( and hopefully others) who have a different prospective then mine which is retail stores (apparel business).

    Thanks again and send me that white paper if you write it.

    Harry
  • Posted by Harry Hallman on Author
    Carol:
    Anyone one else who wants to answer.

    One more question for you. How helpful would it be for sales reps to have their products (clothing, gifts, shoes etc) available as on online line sheet where you can place the order for the retailer or perhaps they could place their own orders?

    Is this being done now for the smaller brands?
  • Posted by CarolBlaha on Accepted
    In my agency, even the smaller retailers place their own orders, direct from the factory. They want to use their own PO's and my factories actually dissuade me from placing the order for them, because of the possibility of error.

    Some gift lines though, once you put get the initial order, the rep is in just for fillers. Some small retailers just want a multi form to sign. So, an online form would be helpful, but only if they can bring and fill that form at the retailer. You fill the form, get the sig, transmit and out the door. If the rep has to take one form and reenter on another-- you know how reps are -- like herding cats on that one.

    Carol
    Sell Well and Prosper tm
  • Posted by CarolBlaha on Accepted
    I re-read your question and I think I mis read it the first time.

    If you are creating an online order form for retailers to place their order direct-- make sure your reps still understand the responsibility of getting that order is theirs. Even if your reps are independent, create the process to "inspect what you expect", so that reps don't just assume the retailer will place their orders.

    Sales people are hunters and caretakers-- and they usually shine in one area and either scared or bored by the other. Fritolay uses hunters to get the order, and caretakers for route sales. Hunters love the chase, but can be bored by caretaking-- give them a tool like an online system-- but keep them on their toes.

    Carol
    Sell Well and Prosper tm
  • Posted on Accepted
    Harry,

    Many manufacturers outsource their sales to established reps. You can find some help at https://www.manaonline.org/. https://www.outsourcingcentral.com/provider/main.asp.
    https://www.housewares.org/industry/mftrrepresentative/default.asp

    Another source would be to look at the websites of the competition, where they often post a list of their sales reps for all to see.

    Hope this helps,

    Myron
  • Posted by Harry Hallman on Author
    Thanks L81. I'll look into it.
  • Posted by Harry Hallman on Author
    Thank you all for you help. I appreciate the input.

    Harry

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