CGTA RETAILERS’ SATISFACTION WITH NEW PRODUCTS PLUMMET…vendors offering new collections rewarded.

The recent CGTA annual report ominously warned, “Buyers who were very satisfied with new product introductions fell … to 26 per cent.”

Basically 75% of retailers are unhappy with the main reason you are a wholesaler..to bring them new products they can sell.   

And as we noted here, retailers rank wholesalers as a bigger problem than big-box retailers.    

The report sadly added,  “Research conducted with attendees… demonstrated that the number one reason retailers attend gift shows is to find new products.  However, this is the one area buyers continue to find disappointing.    Approximately 85 per cent of buyers that attend the gift shows agree they want to see more new product introductions.

In this post we’ll show you how one wholesaler,  after several years of flat sales, re-vitalized their business by focusing on new product development.  And as an added bonus they were also able to reduce their overall inventory levels as well.

More products and lower inventories…now that’s how you compete!

SALES STRATEGY: LEAVE THE CROWD BEHIND

What is your sales strategy? 

Does your sales strategy start with:

• a product launch at a trade show?
• followed by a motivational speech to your reps to get on the road to sell that great new collection you have?
• and finally some discount-promotions to boost your flat sales?

You probably answered yes to each of these.  That’s almost every CGTA vendor’s sales strategy.  

In this post we'll show you how some vendors are taking a new approach...and tripling their same-store sales.  Read on...

HOW CGTA WHOLESALERS ARE LIKE WINE EXPERTS

 Wine experts make predictions about vintages in much the same way CGTA wholesalers judge a product collection.  

Wine buyers will purchase a wine today even though the wine itself will take several years to mature.  Consequently, wine tasters are employed to taste the wine today and then assess how well it will mature.  The buyers will then rely on this assessment of the future to price the wine.

CGTA wholesalers ship the bulk of their collection immediately following a trade show.  Because they are importers they need to place their production runs 4 to 6 months in advance of the trade show.

So much like the wine industry, CGTA employs product developers, think of them as wine-tasters of the industry, to select products they believe will sell based on their experience.

Now predicting the future is always a difficult task.  But those who can do it well are rewarded handsomely.  So let’s take a look at how some in the wine industry and in the CGTA have made prediction easier.

CGTA RETAILERS RANK WHOLESALERS AS A BIGGER THREAT THAN BIG BOX STORES!

CLICK TO ENLARGE

A recent survey by the CGTA identified increased costs from wholesalers as one of the top problems faced by CGTA retailers.  

How big a concern is this?  Retailers ranked it as a bigger threat than competition from big box stores!

Now if you are a supplier think about this:  Your own customers view you as a bigger menace than their actual competitors!