2. RETAIL
It’s the sector where image is everything. But as numerous pressure points continue to cut into the bottom line of brick-and-mortar stores, the landscape has been unrecognizable. Fortunately, looks can be deceiving.
Just ask Kimberly Suchy, marketing and account manager for Royal, Brooklyn Park, Minn. While she acknowledged recent market disruption, Suchy doesn’t believe the retail bubble has burst. “Technology and online shopping have definitely changed and consolidated the retail industry,” she admitted. “Marketing budgets are often being shifted away from traditional print products and more toward online, e-commerce or social networking platforms. I do believe there are still opportunities for distributors in this market, especially those who can provide complete online and print marketing packages.”
And Suchy should know, as her company has been serving the industry since 1977. Royal started out producing traditional forms and sheets for the retail market, and over the years, expanded its technology and products by introducing flexo, digital, variable data, jumbo roll and coated-web stock capabilities. To date, flexo items have been the company’s fastest-growing product line for retail customers.
“End-use retail applications of flexo products include prime labels, stickers, product labels, price tags, shelf talkers, decals, thermal labels, laminated cards and static-cling products,” Suchy said. “Retail applications of our more traditional form and sheet products include order forms, return forms, flyers, coupons, brochures and signs. These products are used in many retail environments in conjunction with point-of- purchase marketing.”
The Issues
As Suchy mentioned, end-users in this market often require complete marketing and branding packages, along with on-demand print services combined with e-commerce platforms, which can result in longer, more challenging sales cycles. But once clients are locked into your platform, it’s difficult for them to make
a change.
“I think the benefit that distributors bring to the retail market is that they have access to a vast network of providers and can be a single source to manage and measure in-store, print and online marketing efforts for retail companies,” Suchy remarked. “They can provide the tools for developing and managing marketing campaigns and, most importantly, can create brand consistency in both print and electronic communications.
“On the print side, they can provide online ordering platforms for common products and also can provide warehousing, kitting or distributing to multiple retail locations,” she continued.
Labels are another growth area. Suchy said she expects to see this product line migrate toward the distributor supply chain and away from the direct supply chain. Royal just worked with a distributor on a unique label that was going to be applied to a bottle. The label, Suchy explained, featured a matte stock with a gloss pattern overlay. “The order had been produced by a different vendor, but the ink started chipping off the bottles once the label was applied,” she recalled. “The original vendor remade the labels with their proposed solution, and it was supposed to be better, but had the same disappointing result. The distributor reached out to us, and after a couple of meetings, we had a detailed analysis of the label and a proposed solution to the problem.”
Royal produced samples (at no charge) that the distributor could take to the client. “The end result was a much more durable label achieving the same design at a very competitive price point, but, most importantly, it solved their problem,” Suchy pointed out. “The end-client placed an order with this new alternative and, in the words of our distributor: ‘Thanks to Royal, I feel confidence has been restored.’”
Suchy did caution distributors to prepare for quick-turn digital projects. She referenced a sign project that Royal currently is working on with a distributor. To provide perspective, the end-user will send art files on a given morning and the supply-chain partners then must deliver product to the client’s stores by end of day.
The Selling Process
No single business is alike, so be mindful of differing purchasing processes. What works for the mom-and-pop model probably won’t fly for a major chain. “At a small, local store, you may deal directly with the owner,” Suchy said. “At a large chain store, you may be working with both a marketing person and a purchasing person at the corporate level.”
Peak times may differ, as well. In terms of in-store marketing and product sales, it’s no surprise that November and December are high-volume months for many retail stores; but for office supply stores, think back-to-school season.
Company type aside, the best way to land your first order is to be a problem-solver. That includes anticipating future obstacles. “Distributors should be asking their retail clients what they want their business to look like in the future, and what new products, services or changes they anticipate making,” Suchy instructed. “This gives the distributor insight into what ideas they can provide to fit into their client’s long-term strategic plan. [Distributors] should be prepared to answer questions about trends they are seeing in the market and how those trends can fit into their client’s business.”
She also encouraged distributors to lean on their supply-chain partners. From technology investments to new process developments, Royal actively seeks ways to help the independent print market, living up to its tagline: “Your success is our business.”
“As an example, we worked closely with a distributor for over a year to help them land a new piece of business,” Suchy said. “During the sales process, we collaborated closely with the distributor by providing a joint plant tour, making an investment in some new equipment, providing free test runs and saving the end-client money by suggesting an alternative paper stock.”