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How suppliers to retail are changing their models thanks to Covid

Suppliers, like retailers, have had to adjust their businesses in response to the challenges of Covid. Smart suppliers have engaged early, and cleverly.

With close contact the core challenge for infection, reducing contact in-store has been key. This means less desire for reps in-store, which makes sense. Thoughtful suppliers understand this, they have put in place alternative opportunities representing products.

Zoom and other tools are proving to be useful in connecting retailers and suppliers. Easy to navigate websites are key too, with more supplier business being done online. The beauty of Zoom and similar is that meetings can be recorded and made available for others in the business to see.

This is where the banner groups can play a role and are playing a role. I know the newsXpress the daily Zoom sessions which have been running since March have been helpful in getting more suppliers in front of more retailers – pitching product, providing back stories and helping to better target customers.

Retailers benefit from not having supplier reps in-store because there is less emotional purchasing. It is hard to say no to someone face to face. Indeed, several retailers have mentioned exactly this to me, that they find it easier to say no to an email or in a phone call than face to face. I suspect some suppliers know this and thereby preference in-store rep visits – for emotional selling.

A good website is key for suppliers keen to replace rep visits. Too many suppliers to our channel do not have a good online presence.

I suspect that post-Covid we will not go back to where we were when it comes to rep visits. Personally, that’s what I hope for as too many rep visits do not deliver the necessary commercial benefits. They are inefficient and facilitate an inconsistent supplier pitch.

The other change smart suppliers are embracing is through product range. For example, some suppliers have embraced the categories doing particularly well and making easy to purchase packages available. On top of this, we are seeing suppliers pitch products not usually pitched to our channel, which is good.

Change is the name of the game. Suppliers embracing change are more likely to be the winners from this year.

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