Great Christmas Seasonal Innovation in the UK

Private Label products always play a key role in retailers’ Christmas Seasonal ranges.

2023 is no exception and, across Europe, we are seeing some super new products across the key retailers.

Arguably, the UK leads the way with a considerable amount of shelf space dedicated to showcase the amazing ranges offered.

In this presentation, our UK Partner, Paul Stainton, summarises some of the most innovative and exciting Private Label launches for this Christmas in the UK.

For further information, or to discuss Private Label developments and opportunities in the UK, please contact Paul at pstainton@iplc-europe.com

For the full presentation click here

It’s not just Price that will Win you more Business

By Koen de Jong and Paul Stainton

Gone are the days when the cheapest price will win a tender for Private Label business.

The most successful players in the European Private Label industry are capable of creating added value on top of the physical product. Although this is difficult to measure, it can be of significant importance in the consideration by a retailer to award a contract to a new supplier or to remain with the existing one. It boils down to the skill to compete on elements other than price alone.

Those manufacturers capable of building and maintaining successful partnerships with the retail trade achieve an invaluable competitive advantage. In some cases, they succeed in adding so much extra value to the product that the retailer is prepared to pay a small premium for this, or will decide not to switch suppliers. Strong account management skills, a proactive attitude in solving problems for the retailer before they can arise, and a good performance in the field of collaborative replenishment and stock control are the most highly valued.

Private label suppliers should be more than manufacturers, they should also be able to provide value as analysts, designers, business consultants and innovators. It is about achieving operational excellence and building sustainable partnerships.

Here are just two examples of how value can be added to the physical product – there are many more.

Sense of urgency

Retailers are faced with the challenge of keeping shelves stocked with a wide range of items every day. A large part of this is fresh or chilled convenience. Supply chain management, in order to guarantee a complete assortment on the shelves with no out-of-stocks, is an immense operation.

Therefore, it makes sense that retailers are demanding and not interested in problems and complexity from the side of the manufacturer. The last thing they need are suppliers that are difficult to contact or with communication that is slow and inefficient. The extent to which a company is proactive and capable of preventing problems of any nature for the retailer is of major importance. This and how they manage to overcome difficulties promptly and effectively, determines the trust the retailer has in the supplier. A relationship with few issues and high supply and service levels will lead to a satisfactory, and hopefully long-term, working relationship.

The speed at which a manufacturer can communicate externally with their counterparts at the retail-end strongly depends upon the degree of internal communication within their own organisation. That is why all departments within the organisation of a Private Label manufacturer must have a highly developed sense of urgency. This also has major consequences for the organisation structure of a Private Label manufacturer which tends to be flat with short communication lines.

 Market knowledge

It is commonly known that buyers and category managers have too little time to even visit their own stores, let alone competing stores. For this reason, it is important that account managers of dedicated Private Label manufacturers pay frequent visits to stores. This will allow them to quickly detect new developments within the category. The careful monitoring of changes such as retail price movement of branded and Private Label products, product introductions and delistings, packaging changes, features and sizes, form part of the basic duties of the account manager.

Furthermore, small-scale consumer research and data analysis can support the gained insights. Current and sound market knowledge, but above all the willingness to share unique information based upon own research and insight, is highly appreciated by the category manager.

Consequently, the account manager becomes a ‘category consultant’, making it easier for them to arrange a meeting with the retailer. After all, the retailer knows they will be much the wiser discussing issues with an account manager who can be relied on to provide great up-to-date category insight, likely resulting in the retailer sharing more from their side. In this way, the account manager can pick up crucial information that can be translated into business opportunities or threats. Based on these insights, new product development and adequate commercial action can be initiated.

If you need support to improve your organisation’s skills ‘to compete on other elements than price alone’, contact us to find more about our dedicated Private Label approach at info@iplc-europe.com

This is 5th newsletter in a series of 12 that we will publish in the coming months. In the next newsletter we will send out in March we will discuss ‘The ultimate preparation for your customer meetings’

The topics of the previous newsletters were:

  • How to become a Private label supplier of choice
  • Being the best Private Label Operator
  • The Art of Negotiation for Private Label Contracts
  • Supercharge your business for your next trade show

 

All newsletters can be found on the IPLC website To read more

The Art of Private Label Negotiations

Investing in negotiation skills is a top priortiy right now

By Malachy O’Connor, Partner IPLC

We are so busy dealing with current challenges at the moment that it’s easy to forget just how much change we have seen in the last three years. Brexit, the global pandemic, war in Ukraine and the consequent inflation crisis mean that all private label manufacturers are negotiating cost increases with buyers who have only experienced cost deflation over the last decade. They are doing this in markets where limited range discounters have redefined their model and are leading a revolution in private label perceptions and penetration. And they are dealing with retailers who have a corporate memory loss on how to manage an inflationary cycle.

At IPLC we have seen the balance of power shifting back and forth between manufacturers and retailers. Eighteen months ago, some manufacturers could foresee the emerging inflation cycle and were requesting cost price increases.  Buyers deployed the inevitable delay tactics but, following the invasion of Ukraine, these inflationary pressures only heightened. Between Spring and Summer 2022, retailers were forced to accept unprecedented cost increases – there was no other option if they wanted to maintain on-shelf availability. But the retailers didn’t like it, and since then they have been actively working on ways to find cost savings and improve their margins.

Negotiation Skills

During this time IPLC has hosted several webinars, attended by hundreds of private label suppliers, and has completed extensive research. We discovered that many national account managers, with significant budget responsibilities, had never benefited from formal negotiation skills training and therefore did not perceive themselves as strong negotiators. We found that the future commercial sustainability of many manufacturers was being placed on the shoulders of the sales team, largely over-looking the role that can be played by training the procurement teams and developing sharper buying strategies. And we found that the vast majority of the sales team remain convinced that they need their customers more than their customers need them. Consequently, many teams are carrying significant stress and anxiety and many manufactures find themselves under severe financial strain.

Investing in negotiation skills is a top priority right now and at IPLC we can support private label commercial teams with impactful training that will deliver significant returns. We train on the core negotiation aspects of preparation, strategy planning and tactics but we also understand that these skills can be greatly enhanced when matched with training on positive mindset, confidence, negotiation culture and managing stress & anxiety. To give you a flavour, here are three things you can do today to dramatically improve your negotiation outcomes.

  1. 360-SWOT: Only 14% of sellers have strong confidence in their sense of leverage. This means that there is a little voice in their head that says, “I need them more than they need me”. One core reason for this is that many salespeople struggle to describe their Unique Selling Points (USPs). And if you can’t confidently describe how your proposition is unique, better or superior to your competitors than how can you expect the buyer to treat you as anything more than a commodity. The key is to do a 360o SWOT analysis. Bring a cross-functional team together, SWOT your business as well as your key customers and competitors. IPLC facilitates these kinds of sessions frequently and we never fail to unearth some really unique strengths that the team did not have full visibility of. Their body language changes before our eyes! They stand taller, shoulders back, chest out and chins up! It’s incredible to witness how their confidence shifts.
  2. Stressbusting: 50% of sellers admit to finding negotiations quite stressful, it’s true even for more experienced negotiators. And stress will destroy your negotiation results because when we get stressed, our bodies release hormones to get us ready for ‘fight or flight’. These are defensive mechanisms, but the problem is that when we are feeling defensive, our brains find it almost impossible to think with creativity and empathy. We all know that collaborative negotiations yield better results, but these are underpinned by our ability to ask great questions, to listen to the answers and to do creative problem solving – precisely the things we cannot do when we’re stressed! So, next time you start to feel light-headed, tingling hands, sweaty brow or that unmistakeable ache in the pit of your stomach – just remember to breath. Specifically, breath in deeply for three seconds, hold it for two and then breath out for five seconds. Do this for a few cycles and you’ll quickly get back into equilibrium, it could be just the thing that’s needed to give you clarity on how to proceed in the negotiation.
  3. Continuous Learning: We’ve all been on a training course where we’ve left it uninspired, wondering what we’ve gained, without immediately actionable take-outs. On our courses we teach a simple technique that becomes a key part of your negotiation habits. It’s as simple as this. You need to keep a notebook or diary to track your negotiations. After every negotiation you scribble down a brief summary: Who was my opponent? What were my objectives? What did I achieve? What worked well? What could I do differently to get an even better result? This short, sharp summary creates a feedback loop from all your negotiations. You give yourself some praise for what you’re doing well, and you make a note to do something differently next time. It’s so simple but so powerful!

You might be thinking that the inflation cycle has peaked and that the worst has passed. But remember that as soon as the buyers see any evidence of deflation, they will be contacting you to secure cost decreases. You will need sharp negotiation skills to manage this part of the cycle too, so contact us if you’d like to find out more about Private Label Negotiation Skills Training for you and your team on info@iplc-europe.com

In the next newsletter we will send out in December we will discuss ‘How to supercharge your business for your next trade show’.

This is 3rd newsletter in a series of 12 that we will publish in the coming months. The previous newsletters ‘How to become a private label supplier of choice’ and ‘Being the best Private Label Operator’ can be found on our website. To read more

How to become a Private Label supplier of choice

Suppliers must help retailers with new private label initiatives that respond to topical issues

By Koen de Jong and Paul Stainton

Retailers seek to deal with technically efficient and innovative private label manufacturers. For the largest categories, retailers pass on the responsibility for quality control, procurement, storage and distribution to their key suppliers.

At the other end of the spectrum we see small, creative and agile suppliers playing an increasingly important role in driving innovation. Among them are manufacturers that respond to opportunities in niches at the higher end of the market such as free-from, vegetarian and eco-friendly categories. In premium and local provenance segments too, mostly small and medium sized companies fill the gap that larger private label suppliers are less able to fill.

Retailers expect their suppliers to quickly respond to market trends and the latest market data. Also, they are expected to have good account management skills and a coherent vision on the category. Suppliers must help retailers drive the market forward with new private label initiatives that respond to topical issues such as packaging and food waste reduction, sustainable sourcing, animal welfare, and carbon emission reductions.

Sense of urgency
Retail organisations are faced with the challenge of keeping shelves stocked with a wide to very wide range of items every day. Supply chain management, in order to guarantee a complete assortment on the shelves with no out-of-stocks, is an immense operation.

Therefore, it is no surprise that retailers are demanding and not interested in problems and complexity from the side of the manufacturer. The last thing they need are suppliers that are difficult to contact or with communication that is slow and inefficient. The extent to which a company is proactive and capable of preventing problems of any nature for the retailer is of major importance. This, and how the supplier manages to overcome difficulties promptly and effectively, determines the trust the retailer has in the supplier. A relationship with few issues and high supply and service levels will lead to a satisfactory and long-term working relationship.

The speed at which a manufacturer can communicate externally with counterparts at the retail-end strongly depends upon the degree of internal communication within its own organisation. That is why all departments within the organisation of a private label manufacturer must have a highly developed sense of urgency.

Innovation
In order to quickly respond to new market opportunities, retailers increasingly insist on a proactive approach from private label suppliers. They should be capable of innovating actively and successfully, as this enables them to quickly match the introductions of manufacturer brands. Their aim is to keep the time-to-market of private label introductions as short as possible. Today private labels have evolved from following the brands’ lead to showing them the way. Retailers have become active innovators, breaking rules and experimenting with private label to drive category growth.

Account managers of the private label manufacturer should maintain a close relation with the retailers. They should be able to pick up signals at an early stage as this will feed the innovation process. By reacting alertly and proactively, a private label manufacturer can secure a competitive advantage. In addition, raw material and packaging suppliers often turn out to be valuable sources of information. Organising brainstorming and joint product development sessions with the retailer’s category teams have in many cases given the initial impetus to successful product developments.

In one of our upcoming newsletters we shall also address the key competences of a successful Private Label manufacturer and how to compete on other elements than price.

If you wish to find out how your company rates in being a Private Label supplier of choice you could consider the IPLC Quick Scan. To read more click here.

If you have any comments or additions to this post, we would love to hear from you on
info@iplc-europe.com

Private Label – The Perfect Time for Sales Growth

Private Label is growing in most European countries right now, as the cost of living crisis deepens, with inflation rising rapidly and consumers looking to manage their ever-tightening budgets. It has never been so important to ensure that your business is optimised for strong Private Label sales.

With consultants working across 9 different European countries, IPLC is here to help you grow your business and become even more successful.

From w/c September 12, IPLC will start with a series of informative newsletters. Each will focus on a specific theme, relevant to all players in the Private Label supply chain.

The topics that will be discussed are:

1. How to be the Private Label Supplier of Choice
2. Being the best Private Label operator
3. The Art of Negotiation for Private Label contracts
4. Supercharge your business for your next trade show
5. The ultimate preparation for your customer meetings
6. It’s not just price that will win you more business
7. Is your Private Label strategy still fit for purpose?
8. Driving Private Label growth
9. The right structure to ensure success in Private Label
10. Supplying both brands and Private Label can work!
11. The huge opportunity for the Supply Industry within Private Label

Don’t miss out on these IPLC newsletters and sign up by clicking this link

Private Label Innovation in the UK Vegan sector

The explosion of new product launches in the Vegan sector continues.

The UK plant-based market value is second only in size to the US, and continues to lead the way in new product innovation across Private Label in Europe.

January is the key period with all retailers expanding their Vegan ranges to tie in with the fast growing Veganuary campaign.

Our UK Partner, Paul Stainton, summarises some of the most innovative and exciting Private Label launches for this January in the UK, and highlights a few key points for Private Label manufacturers to consider.

For further information, or to discuss Private Label developments and opportunities in the UK, please contact Paul at pstainton@iplc-europe.com

Surviving the Cost Crisis

On Friday 3 December we presented our second online webinar on the impact of food cost inflation. In total 185 professionals working in the Private Label industry participated in the event.

The objective was to give an update of the situation in the market place and to offer practical advice on strategy and tactics to deal with the sharply rising costs of food, energy, transport and labour.

Three IPLC consultants, all being senior ex-food retail buyers shared their views and thoughts with the audience.

You can click here to watch a recording of the webinar

 

 

Unique Private Label Seasonal Offers in the UK

There is always room to grow sales in Private Label!

Even with one of the highest shares of Private Label in Europe at over 50%, the UK market continues to see a rapid rate of new innovation and product launches in the Private Label arena.

Christmas is a key time to gain and retain shoppers, and the main supermarket chains in the UK fight hard to do this by developing unique Private Label seasonal offers.

Our UK Partner, Paul Stainton, summarises some of the most innovative and exciting Private Label launches for this Christmas in the UK, and highlights a few key points for Private Label manufacturers to consider.

For further information, or to discuss Private Label developments and opportunities in the UK, please contact Paul at pstainton@iplc-europe.com

For the full presentation click here

Amazon Fresh new Private Label line

Amazon Fresh new Private Label range launches in the UK | 7 May

The European grocery retail market has seen many changes throughout the pandemic, none so significant as the growth of online sales. In the UK online grocery sales peaked at 15.4% share (Kantar 12 w/e 21/02/21) and alternatives to “traditional” in-store shopping continue to flourish such as the surge in “rapid home delivery” options.

But one particular launch has received much publicity – Amazon’s opening of two “walk-in, walk-out” Amazon Fresh convenience stores in London.

With this launch Amazon have developed a brand-new Private Label range which impresses through both range depth and product quality.

It offers an exciting new opportunity for Private Label manufacturers. Most of the new range is in the Chill/Fresh category, so there is plenty of scope to develop across Ambient and Frozen.

This Private Label range is bound to be extended to Amazon Fresh online as well as in the forthcoming new Amazon Fresh stores, so now is the time for manufacturers to approach the retailer to discuss potential new business.

UK IPLC Partner, Paul Stainton, visited the Ealing branch of Amazon Fresh recently.

Valuable insight for Private Label manufacturers

Last week Simon Wainwright, Global Insight & Analytics Director, at IGD interviewed my colleague Paul Stainton, Partner at IPLC in the UK.
As a former Group Buying Director at Aldi UK, Paul shared truly interesting insight for Private Label suppliers on topics such as:

-The trends in Private Label as a result of the global pandemic
-What retailers expect from their suppliers
-How to address innovation and why it so important
-The importance of sustainability in Private Label
-How Private Label can help engage with the consumer
-E-commerce and the challenge for Private Label

Please click on the button below to watch the full 30 minute interview.