Getting Into Retail: Frequently Asked Questions
Launching into retail is both exciting for your brand and a huge operation. As a small business, there will be many plates to spin, not to mention brand new retailer relationships to navigate. Matt Hopkins, founder of IND!E POP-UP, explained what it takes to launch your product into stores in our masterclass, Getting Ready For Retail. Here are some of the FAQs we covered in the session.
Is it better to tell buyers that your product caters to ‘everyone’?
Though it might seem retailers will be more likely to stock your product if you target a wider audience, Matt says it is actually essential to demonstrate the niche your product fits into. Your ideal customer profile should be the bedrock of your business anyway, and stockists will want to know about your target customer’s interests, purchasing habits, and consumer needs in order to assess how fruitful your listing will be.
Knowing your customer will also enable you to:
target the right retailers in the first place (because there’s no point pursuing Tesco if your audience shops at Wholefoods)
keep improving your product based on feedback, benefitting both you and your stockist
stand out strongly amongst your competitors on the shelf
run relevant offers and campaigns
Do you need to conduct market research?
Market research is invaluable for ensuring the product you’re targeting at retailers keeps its relevance and appeal. Matt suggests surveying your existing customers about their experiences with your brand as well as their other consumer habits and interests.
“Look at tools that enable you to get quantitative data back,” Matt says. “This becomes more powerful the more data you actually have.” Avoid vague or leading questions as these won’t give you useful answers: ask for specific insights to inform the direction of your product.
Send out feedback forms online and speak in-person with your customer as much as possible. Matt recommends pop-ups as a great way to do this, as you can observe their engagement with your product in the process.
It’s also essential to keep up-to-date with trend cycles to understand how the market is changing. Retailers will expect your product and marketing strategy to be adaptable to innovations.
Should you target bigger retailers first?
Not necessarily: Matt says there’s value in listing with independent stores before going after bigger retailers.
Firstly, you can test your operational capacity for wholesale through smaller order quantities. Secondly, you can treat the listing as market research, testing the look and feel of your brand on the shelf and observing the customer response. “Going after the right independent retailers will help you finesse your product and marketing before you get on the shelves of the majors,” Matt says.
What are retailers looking for?
Retailers are looking for products that will resonate specifically with the people who shop with them. For example, when it comes to industries like skincare, gifting and luxury, Matt says that consumers are increasingly shopping with more mindful intention - investing in higher quality that will last. This means that these kinds of brands should now seek to paint buyers a picture of elevated quality and thoughtfulness, as opposed to selling points like convenience or price.
Retailers are also looking for a degree of personalisation, meaning an alignment with your customer’s needs and core values. Having a robust ideal customer profile is fundamental for demonstrating this sense of personalisation.
Finally, Matt highlights retailer interest in experiential elements, exclusivity, and a strong point of difference in your product or story.
How do you approach a retailer?
Buyers at your target retailer will most likely be on LinkedIn, so message them and ask for an email address. Don’t be put off if you don’t get a response, though: they are notoriously busy juggling a range of listings.
For this reason, Matt recommends being innovative with your approach. For example, one of the benefits of launching a pop-up shop before entering permanent retail is that you can collect footage of sales, customer interactions and product merchandising. Use this footage to bolster your initial outreach and convey your brand in more than words.
Even if the buyer you’re in touch with isn’t the level of interest you’d like, remember to be polite and humble in your exchanges - let the greatness of your product speak for itself.
How should you price your products for wholesale?
Matt recommends a 70% margin, excluding VAT, which allows for a major retailer’s margin expectation. While, as a small business, you may not be at the stage of negotiating more favourable terms with your supplier or manufacturer, the unique sales proposition (USP) of your product should empower you to command a higher RRP.
What can you expect once you’ve launched your product into store?
“Once you’ve broken in, then you’ve got to perform”, says Matt. It’s vital to work with the retailer to make sure you’re both doing the best by your product. Regular check-ins will ensure you can keep making improvements to your listing, responding to feedback and pursuing marketing opportunities.
The buyer got you into store, and now the merchandising team will help you thrive there: according to Matt, the merchandisers oversee store space, the in-store marketing calendar and your listing targets, so make the most of your relationship with them to help your product go further.
