It is challenging seeing a supplier you have supported for years go out with a direct to consumer pitch. I didn’t plan to write about Collins Debden today. An email from them this morning caught my attention.
This is a Collins Debden direct to consumer pitch.
They added me to their marketing database, without my permission. Their email includes a compelling offer:
They end with a offer of social media connection. If only they were this engaged with small business retailers of their products.
I am surprised that they are promoting direct to consumers when they are so far behind with shipping to retailers. Their fulfilment processes are strained and unable to get product to shops on time. Why would an individual feel they could fulfil a single order on time, unless Collins Debden is prioritising their direct to consumer orders. I have no idea whether that is the case tho.
I am tired of suppliers going direct after years and decades of support from retailers like us to drive brand awareness and engagement. They could not go direct as they have if we had not supported as we have.
A supplier going direct demonstrates disrespect for their retail partners. Them doing this while they are party to delays in supply to retailers is appalling. It is a failure of social responsibility on their part.
Thinking about this issue of a supplier going direct more generally …
There are ethical considerations to consider when a long-term supplier decides to go direct-to-consumer.
- Fairness and Trust: The supplier’s decision may impact local retail businesses, potentially leading to lost sales or revenue. A good supplier will be on the front foot and engage in open communication on how to mitigate any negative effects. A bad supplier will make the move and not discuss it with retailers.
- Customer Relationships: Customers may be confused or disappointed by the change. We need to be transparent and communicate clearly with them to maintain trust and loyalty to our business. We need to tell them what has been done to us.
- Competition: The supplier is likely now a direct competitor, impacting your market position. Consider how you can differentiate your business and offer unique value to your customers. Look for alternative products that will serve your customers.
Ultimately, the ethical approach involves maintaining open communication, acting with integrity, and prioritising the needs of your customers.
Mark,
I read this about Collins Debden with great interest. You no doubt remember last years issues for payments of other newsXpress member debts with Collins Debden which resulted in diary delivery’s delayed 4 to 6 weeks (this destroyed my sales s as on time arrival is essential with diaries). Thankfully you got an extra month in the payment process. My unsold diaries were among the higher end of what I have seen. The 4 to 6 week delay was responsible for the poor sales.
This year statements from GNS and other advice revealed GNS was refused delivery. Diaries are still to arrive at Newsagents. Apparently Collins Debden refused to provide traditional credit terms for Diaries. Is this also the case with newsXpress ?
I ran a check with Office works on line as the full range of Kingsgrove (Collins Debden) are available now at what I would consider to be good healthy mark up prices. I wold assume if whole sale price was about as expected then one should be able under cut OF by say 1 or 2 dollars a line.
Of all the reps I dealt with the Collins Debden was the among the most determined to call and contact me. This level of attention did make me wonder at the time..
I believe you are right about what they are doing and Newsagents are now discarded customers who no longer enter there sales and distribution plans.
Diaries were among the best yearly sales performers I ever had especially the Collins Debden Kingsgrove’s.
Commenting to clear up any market misconceptions from a GNS perspective: the delays to newsagents receiving Collins Debden CY25 stock via GNS are wholly and solely caused by CDA’s 3PL provider being unable to service in a timely way GNS’s (normal) seasonal demands of the diary category: we would normally receive the bulk of our stock in July/August. I can assure you GNS is as frustrated as our customers and I have been in regular discussions with senior CDA management. Nonetheless I apologise profusely for the delays to the season. I am pleased to say that we have started to receive stock this week and will be fulfilling newsagents as fast as possible.
Mark, on your wider point re. newsagency suppliers engaging directly with consumers. GNS’ position is that this activity is unhelpful for the channel and counts against a brand/vendor in our consideration of how we range/represent/promote/supply.
Paul Yardley
CEO, GNS Wholesale
Thanks for commenting Paul. I have found the responses from Collins Debden management to be bland, lacking detail and lacking accountability. Reading their words you’d think they made the changes at the root of the supply problems because customers asked for them. I am yet to find any customer who asked for them.
The other interesting point that I did not realize the time is the email you used to get the above graphics was received by myself and the prices offered were Retail slightly dearer that retail at OFW. That said it all
Peter R