Advice

[Akra]

Hi,

I hope everybody is doing great.
My name is Shamma, I recently secured an exclusive contract with an overseas company that manufactures FMCG with a good reputation in East Asia and distributes their products to different region of the world like, Australia, India, china, Middle East, parts of Europe.
I manage to get a letter of authorization from them to distribute their products in the Uk.

Here is my question: would I be able to get their products to big retailers such as asda, Tesco, sainsbury assuming the products quality is superior or comparable to the one that is already in the market ?

Any help would be really appreciated.

Thanks

 

[fisicx]

Hi @Akra and welcome to UKBF.

Everything is possible. But getting these products into the big chains is going to be a long hard and probably expensive process.

All you can do is write to them and arrange a meeting.

 

[Akra]

Everything is possible. But getting these products into the big chains is going to be a long hard and probably expensive process.

All you can do is write to them and arrange a meeting.

Thanks for the reply I really appreciate it. I am being honest here with myself know it does and my lack of knowledge of how the Uk market is working or how to deal with them is adding to that.
Is there any marketing agencies here that can get me through their connections to one the buyers?

Thanks again

 

[Ozzy]

Is there any marketing agencies here that can get me through their connections to one the buyers?

There are marketing agencies that may say they can help, but based on your own admission of lack if experience in this area you may be better served to hire someone (or a consultant) who specialises in retailer sourcing.

 

[Mark T Jones]

There are marketing agencies that may say they can help, but based on your own admission of lack if experience in this area you may be better served to hire someone (or a consultant) who specialises in retailer sourcing.

This.

Getting in to chains is one thing. Managing the account is another - they are extremely prescriptive on terms. Consider:

• Payment terms - 60/90 days (as long as you comply with their systems.
• Stock-holding & distribution clauses.
• Automatic deductions for 'marketing', breakages, shrinkage etc.
• SOR.

We once described it as 'the dream order that kills your business'.

 

[Paul Kelly ICHYB]

assuming the products quality is superior or comparable

You also need to consider:
Branding
Packaging
Compliance
Availability
Price

You need to understand what the costs of the products are - calculate the cost to warehouse in the UK. Understand the costs of logistics and, importantly, what Mark indicated above.

Something that costs a few cents at source can be inflated to pounds when it lands in the UK or is delivered to customers.

 

[MOIC]

Supermarkets will find and go to the source.

 

[Paul Kelly ICHYB]

Supermarkets will find and go to the source.

Depends on the product and branding (if any) OEM/own brand, definitely!

 

[Akra]

Thank you guys for the valuable inputs I really appreciate it.

I am sure about my source as I already signed a contact of exclusivity with them to be their main distributor in the Uk. And even if someone go to the source they will ask him to go though my company. This company has more than 5 catalogs of products, confectionery,FMCG, liqueurs. And as @Ozzy said I would need to hire a consultant or retail specialist who has connections to retailers.
Would you guys suggest me any specialist or retail consultant that could help in this matter?

Thanks you for your responses

 

[NickGrogan]

Why has the company given you a contract for exclusivity for 5 catalogs of products for the whole country when you have no knowledge or experience?

Unless this is a family company I suspect that "contract" is completely worthless.

I suggest asking a friend to contact them, pretending to be a customer and see how they respond.

 

[Akra]

Why has the company given you a contract for exclusivity for 5 catalogs of products for the whole country when you have no knowledge or experience?

Unless this is a family company I suspect that "contract" is completely worthless.

I suggest asking a friend to contact them, pretending to be a customer and see how they respond.

Fair question, they didn’t just give to m. I know the owner’s son and he is doing me a favor nothing more nothing less. I already received the samples from them but i don’t know where to go next.
As for question a customer has already done that and my friend informed me immediately that some guy in the Uk approach them and they shut him off.

 

[fisicx]

Also @Akra - why would Tesco want to stock an unknown Asian product? If there is demand for something they will already have a supplier. And that after exhaustive research and consumer testing.

 

[Akra]

Also @Akra - why would Tesco want to stock an unknown Asian product? If there is demand for something they will already have a supplier. And that after exhaustive research and consumer testing.

That’s a fair question also,
I don’t know to be honest it’s a try. Also the company itself has existence in Australia, china, India , Middle East, most of East Asian countries and part of Europe and I think it should be comparable to the quality of goods here in the Uk in the same category.
And that’s basically my question, do you guys think it’s doable or not given the quality and the price is comparable to the goods that’s already in the uk market?

Thank you for your feedback.

 

[NickGrogan]

Fair question, they didn’t just give to m. I know the owner’s son and he is doing me a favor nothing more nothing less. I already received the samples from them but i don’t know where to go next.
As for question a customer has already done that and my friend informed me immediately that some guy in the Uk approach them and they shut him off.

OK, that makes more sense.

So first step, forget all about the big supermarkets, you're unlikely to get an order from them, and more importantly you don't want an order from them. It will cost you far more than you'll make and give you all kinds of problems.

Assuming the products are targeted at East Asian customers, look for the small wholesalers that specialise in that market, the small chain retailers (5 or 10 stores, not supermarkets), and the online specialists. Speak to them and try to get some smaller orders. Start small, make cheap mistakes and grow the brand.

The time to talk to supermarkets is when they call you, not the other way round.

What marketing support is the company giving you? Financial and collateral

 

[NickGrogan]

That’s a fair question also,
I don’t know to be honest it’s a try. Also the company itself has existence in Australia, china, India , Middle East, most of East Asian countries and part of Europe and I think it should be comparable to the quality of goods here in the Uk in the same category.
And that’s basically my question, do you guys think it’s doable or not given the quality and the price is comparable to the goods that’s already in the uk market?

Thank you for your feedback.

Quality and price are subjective but you're unlikely to win on either.

If you target price, the existing big players will undercut you until you quit - unless you have enough marketing support to beat them, which is unlikely.

 

[fisicx]

@Akra what is the most popular product in the catalogue? Have you seen this product in the UK? If so, how much shelf space does it take up?

If you could find a buyer, can you ship in huge quantities each week?

 

[Akra]

Wafers internationally and locally but local have more products like the toothbrush

Yes, the products have been seen from online e-commerce stores such as Amazon and some smaller dcommerce websites but most of them says it’s out of stock.

Ship in each week ? That’s impossible. It takes around 1 week to be shipped by the sea. Did you mean monthly? If yes then we are able to ship in large quantities. Our factory is a large factory and we are able to accommodate large quantities.

How much quantity are you thinking of?

If you want I can send catalogs over to you.

 

[fisicx]

I don’t want anything. I’m just making suggestions as to the research you need to do. Don’t look online, you need to start visiting shops looking for similar products. You would need to show buyers there is demand.

 

[MarkOnline]

There are some big buyers who arent the "Big 4" retailers who will give you a appointment with one of their buyers, if your relationship with your friends company is as strong as you say it is then I would ring to book an appointment, get my ducks in a row and go see them. Do your market research with similar products in the marketplace. Good luck

 

[Paul Kelly ICHYB]

Akra,

You really need to do a lot of research onto competitor suppliers, brands and.products.

You also need to understand logistics more and the market a lot more or you will be eaten alive and lose money.

You said 1week to ship - is that to load onto vessel or ship? If coming from Asia, I think you will find shipping more like 3 weeks!

 

[Akra]

@Paul Kelly ICHYB
Thank you for your input. You’re totally right and the only reason I approached you guys is to get more clear picture from experts like yourself. I’ve done the market anaylsis and it looks promising and I approached a couple of wholesalers in Birmingham, Sheffield and Manchester with the samples that I have and it looks promising. I just need to expand my horizon a bit over those I already know.

Thanks again to everyone.

 

[Akra]

@Paul Kelly ICHYB
Thank you for your input. You’re totally right and the only reason I approached you guys is to get more clear picture from experts like yourself. I’ve done the market anaylsis and it looks promising and I approached a couple of wholesalers in Birmingham, Sheffield and Manchester with the samples that I have and it looks promising. I just need to expand my horizon a bit over those I already know.

Thanks again to everyone.

And regarding the shipment from Asia to the Uk it’s going to take more than 3 weeks with all that’s happening currently in the Red Sea.

 

[NickGrogan]

@Paul Kelly ICHYB
Thank you for your input. You’re totally right and the only reason I approached you guys is to get more clear picture from experts like yourself. I’ve done the market anaylsis and it looks promising and I approached a couple of wholesalers in Birmingham, Sheffield and Manchester with the samples that I have and it looks promising. I just need to expand my horizon a bit over those I already know.

Thanks again to everyone.

You dont need to expand your horizons yet.

Get a few actual orders, make the deliveries get paid and have no issues.

Do that a few times.

Then start to look for more.

 

[MOIC]

You have to know your products inside out.

Buyers are savvy, if they feel you don't know EVERYTHING about the product, logistics, product certification, import regulations, they will take one step back.

Rule number 1: Know your products and the likely questions you will be asked at the first meeting.

 

[Paul Kelly ICHYB]

they will take one step back.

Or take advantage!