Arindam Paul’s Post

While scaling offline distribution in GT/MT, founders should never forget the interdependence of demand and supply A brand irrespective of how good it is, won't sell if consumers don't find it at their preferred point of purchase And irrespective of how strong its distribution is and how widely available it is, consumers won't buy it if the product- price-brand proposition isn't strong enough It takes both demand and supply to fire at the same time to achieve sales There are 2 problems that can happen if brands aren't able to maintain the balance and why sales don't scale up a) Poor Distribution: While the product proposition is strong and the brand creates demand, the product wasn't available and visible in places where consumers were buying the category. This renders marketing spends useless. Distribution and visibility problems will have to be solved by sales and trade marketing teams b) Poor Demand/Pull: This is the more common and bigger problem for new brands. The products are available and visible in stores, but the product price brand proposition isn't great (could be lack of PPCMF or brand awareness problem) and offtakes are low. This triggers vicious cycle. Retailers hate slow moving items with poor stock turnover. So brands that don't sell much lose shelf space and even gets delisted from the shop. In this sales, field sales team can't do much to influence or increase numbers. Demand problems have to be solved by product and brand marketing teams So, any brand looking to scale offline in General Trade or Modern Trade have to balance supply and demand and ensure both grow in tandem. Second chances also don't come easy here And that is what makes it very difficult. The consumer tech equivalent of this is the difficulty in scaling 2 sided marketplaces

📢 Digital Commerce Global has launched its second annual Amazon Benchmark for brand manufacturers. 🏆 Its 2023 Amazon Benchmark saw L'Oréal named the most admired brand manufacturer selling on Amazon among over 45 global manufacturers surveyed, with the LEGO Group, Unilever, Purina Mills, LLC and Procter & Gamble, rounding out the top five. 💡 This year's Benchmark also aims to gain insight on the latest dynamics when it comes to selling on Amazon, including: - Profitability - Vendor negotiations - Retail Media budgets - Amazon AI tools adoption Every participant will receive a free copy of the industrywide report. More information on the the Benchmark and how to access it are available in the story. Link below: 👇 https://lnkd.in/erSH2Mwc

The offline distribution space is seemingly a complex one. For new brands it can even be intimidating. However, if you work towards simplifying it, it can turn out to be quite a rewarding one ! A couple of decades back a brand's biggest challenge may have been the simple act of ensuring that it's products reached as many towns as possible. Infrastructure and logistics invariably played spoilsport. Not so these days. Reaching out to stores is no longer a challenge. However of late, I have been hearing quite a few stories of how brands, particularly the newer ones, have not been able find success in offline stores, even though the product has found favour on marketplaces or by going directly to consumers. A story which gets repeated is that of such brands which want to go offline, or expand their availability there, hiring some sales people, asking them to find distributors, and then going about placing the brand across stores. This continues for a few months, and then the the castle of cards collapses... Why does it have go so horribly wrong in the offline world ? The more I interact with brands, the stronger I feel that brands tend to forget the basics (listing here some which I feel are relevant, though in no way exhaustive) - # What does your brand solve for, and who's the target consumer ? Brands do a wonderful job of this when selling directly, but tend to forget this basic premise when going offline. # The offline world is humungous, to say the least. All the adjectives that you may have learnt in school, will fall short of describing the type of stores that you will encounter here. Each store that exists, has figured a way to survive being relevant to the set of shoppers that enters it. And that's how they tend to create a distinct identity for themselves. You will get some products at some stores, but not all products at all stores. # Figure out with some degree of confidence (either using data or your gut, but filter it with honesty) where your target consumer shops. This will narrow down your potential list of stores to sell to, dramatically !! # To reach out and 'sell' to them you will need distributors and sales people. Getting them maybe the easier part, but getting them to understand your purpose and how to execute it will be the difficult part. These folks are going to be your bridge to success - hence, spend time and effort in enlisting them fully, in mind and spirit. Neither of them wants to fail. However, as a brand we set them up for failure, by not equipping them for success (convoluted, but do give it a thought). # Bring all your knowledge of marketing (remember the classical marketing funnel ?) and adapt it to the shoppers at such stores where your product has been successfully placed - you need to demonstrate what success means, to the retailer also :) Who said it was going to be easy – but, it sure will be interesting ! #retail #offline #gtmstrategy

This is really important for small brands looking to grow their offline distribution and sales.

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Let's talk Amazon and DTC strategy. There are two main pathways brands typically follow: 1. DTC to Retail and Amazon: Start as a DTC brand, then expand into retail and Amazon. 2. Amazon to DTC: Launch on Amazon first and then build a DTC presence. For DTC brands venturing into Amazon and retail: -Treat Each Channel Uniquely: Recognize that DTC, Amazon, retail, and other channels like TikTok Shop each have distinct dynamics. They should be managed individually but looked at holistically. -Consistent Pricing: Maintain price parity across all channels to avoid cannibalization. Amazon's policies now require consistent pricing, preventing customers from choosing Amazon solely for lower prices. -Sales Channel Integration: View each channel as a separate sales avenue. While there will be some crossover, treating them as unique channels helps in better strategizing and measuring their impact. Brands that begin on Amazon face unique challenges: -Control and Data Limitations: Amazon controls the data and the customer relationship, limiting your ability to market directly. -Competition with Amazon Basics: You risk Amazon launching competing products, potentially pulling the rug out from under you. -Dependency on One Platform: Relying solely on Amazon means having all your eggs in one basket. Many brands have achieved significant success on Amazon. But to sustain long-term growth and gain customer insights, brands need to develop a DTC strategy. Owning your customer data allows for better marketing and a complete view of the customer journey, enhancing your ability to engage and retain customers. TLDR: Amazon can be a powerful platform, but balancing it with a solid DTC strategy is essential for long-term success. That being said, I know what you're thinking... measuring Amazon, DTC, and retail is a CHALLENGE. There are brands that are doing it successfully. Stay tuned...

Leveraging Multi-Channel E-commerce for Entertainment Brands: YES or NO? Recently, I’ve had a couple of conversations with the entertainment brands on the right ecom channel strategy. The key question: Does adding channels like Amazon and Walmart marketplaces harm brand perception? The answer, if executed properly, is a resounding NO! 🚀 Differentiating product offerings is crucial. The official store can feature premium, limited drops, while additional channels showcase simpler, evergreen designs. Benefits include: - Efficient Design Resource Allocation: Transfer old collections to supporting channels, focusing the official store on new, trendy items. - Optimized Inventory Management: Move bulk items to supporting channels when they’re no longer relevant for the official store. - Widening Audiences: Cater to diverse audiences - different generations use different channels. - Testing Strategies: Experiment with marketing and pricing strategies tailored to loyal fans and the general audience. At Printful x Snow Commerce, Inc we manage diverse selling channels daily, and the data is clear – going multi-channel is the right answer! According to our experience, revenue grows at least by a third during Year 1📈

From Stanley 1913 to Snoop and the Solo Stove, it's all about staying ahead and taking big shots in 2024. How can brands embrace a "let's do it" mindset, the power of change (and Amazon) this year? Advantage Unified Commerce's Victor Lee details in our blog: https://bit.ly/3uJ8CmZ #Retail #ECommerce #ConsumerTrends #SocialStrategy #Marketing

Looking back, I realized holding on to digital DTC for too long was a significant mistake. Expanding to an omni-channel approach was the key to creating an economic asset worth acquiring. Here are 3 mistakes, 3 lessons and 3 questions to consider if you’re thinking through your ideal sales channel breakdown. Mistake 1: We must “own the transaction” I used to think it was essential that we ‘owned the transaction’, got that email address or phone number, and, most importantly (at the time), could attribute purchases to our direct response ads. Lesson: Yes, maybe we get a little bit more data compared to selling in channels we don’t ‘own’, but I learned it drove us into a way of thinking that kept us small. Namely, that the only way to grow in this new world of retail was to have the tightest feedback loop between meta ads performance and our ecom store Question to consider: Could there be assumptions you're making where you’re limiting your brand's overall impact on the world because of the 'need' for certain types of data? Mistake 2: “If customers want to buy from us, they’ll come to our website directly” Lesson: I just had to do the math. Only 16% of retail sales happen online. Of online sales, amazon and the other biggies own over 50%. To be allocating 100% of our marketing dollars to where only 7% retail sales are happening no longer made sense Simultaneously, I had to develop a little bit of humility that even if someone really loves your brand, the reality is they're busy living their own life To expect 100% of your purchasers to have to enter our url in their browser in order to shop our brand is a super high bar to require, creating unnecessary friction Question to consider: Are you putting unnecessary friction on the road to your brand becoming the hugely impactful, meaningful brand that you envision? Mistake 3: Thinking channel expansion would weaken our brand We thought we needed to own every single touchpoint in the consumer brand journey. So therefore, as it relates to wholesale partners, it made sense that we'd think, "We can't just show up on a rack in some clothing store" We thought putting the brand in someone else's hands would be suicide Then, as we thought about Amazon in the early days, we didn't want to show up next to all the lower priced copycats, or didn't want amazon to duplicate our product if we saw success Lesson: If we had done a good enough job at building a strong brand, people would see chubbies and purchase chubbies. We were just providing more opportunities to buy. Retail partners are actually experts in selling stuff whether it be in the physical realm with wholesale partners, or in ecommerce with amazon. Finally, just by being in more places, we have more opportunities for the consumer to see our product, which also strengthens the brand. Question to consider: Have you built so much brand equity that you just need to put your product more places to see the next level of growth?

Choosing between online and offline distribution is a critical decision that can significantly impact a business's success. Both online and offline distribution channels offer unique advantages and disadvantages, making it essential for businesses to carefully consider which option aligns best with their goals and target market. Online distribution has become increasingly popular in recent years, thanks to the rise of e-commerce platforms and digital marketing. One of the primary advantages of online distribution is the ability to reach a global audience with minimal overhead costs. By selling products or services online, businesses can bypass the need for physical storefronts and expand their reach beyond their local market. Additionally, online distribution offers greater flexibility in terms of marketing strategies, allowing businesses to target specific audiences through social media, search engine optimization, and email campaigns. On the other hand, offline distribution still holds value for many businesses, especially those operating in industries where in-person interactions are crucial. Offline distribution channels, such as brick-and-mortar stores, trade shows, and direct sales representatives, provide an opportunity for businesses to build personal connections with customers and establish a physical presence in the community. This can be particularly advantageous for businesses selling high-end or luxury products, where the in-person shopping experience plays a significant role in the purchasing decision. When choosing between online and offline distribution, businesses should consider a variety of factors, including their target market, industry regulations, competition, and budget. Conducting market research and analyzing consumer behavior can help businesses determine which distribution channels are most likely to resonate with their target audience. Additionally, businesses should consider the scalability and long-term sustainability of their chosen distribution model, ensuring that it can adapt to changing market conditions and consumer preferences. Ultimately, the decision between online and offline distribution will depend on the unique needs and goals of each individual business. Some businesses may find success by combining both online and offline distribution channels to create a comprehensive omnichannel strategy that maximizes their reach and engagement with customers. By carefully evaluating the advantages and disadvantages of each distribution option, businesses can make an informed decision that sets them up for success in the competitive marketplace.