The best way to grab customer attention is through sampling tactics. This not only gives the customer the opportunity to try your product but also provides your brand with invaluable real-time feedback from your target customer. You can measure immediate lift with sales the day of a sampling event and, if the retailer provides store-level reporting, you can measure average daily sales for the weeks after the demo compared with the weeks prior. I'd recommend you start with a smaller cluster of stores to measure performance before overinvesting. If the ROI from your initial test is strong, you could ramp up from there.
As Skinny Mixes has expanded into Target and Walmart, the one piece of advice that I would give is not underestimate the importance of focusing on execution. It is critical to not only have strong pull through sales and marketing plans, but also to have all the new item set up, logistics and fulfillment double checked to ensure you are meeting all of the retailers requirements. Many overlook the attention to execution to ensure it is a success from the retailers score card.
Check on your resiliency of your supply chain! As you begin to scale, it is important to have multiple suppliers of your ingredients, and identify long lead times, especially for those ingredients coming from abroad. This might seem unnecessary when you are starting out, but I think it's important to plan for success and build those supplier relationships now. Remember no product = no sales.
“Bringing dreams to life, always thinking big, and building a team of partners that each bring something to the table, but all have one thing in common: success. The success I have now is the byproduct of a 17-year journey that came with its own setbacks and challenges. This is my 16th restaurant; I still have eight open today, and now BCH Grocer, our brand of dumplings that is on shelves of over 1,000 Walmart across the country in partnership with Patti LaBelle, two Brooklyn Chop Houses with plans to license the brand globally and more. I learned from my mistakes and was able to grow continuously. No matter how hard it gets or how many losses, it is important never to give up. I was persistent. I wanted to win. I knew there was something(s)out there that I wanted to own. Do your research on the location, and demographic and look into what is driving the success of other brick-mortar chain stores in the surrounding area and how your brand can stand out amongst the rest.”
It’s important to do your due diligence on managing your margins & profitability with every SKU you plan to present to retailers/distributors. Make sure your margins are healthy enough to give the retailer their expected markup, which can be as high as 40%. If you have an item that has high COGS, it may be difficult to remain profitable and/or have the additional funds to market and promote the item at retail so you can ensure that the item is successful enough to remain on the shelf. In addition, most entrepreneurs I have mentored aren’t aware of the costs associated with launching at a retailer. For instance, often, there are slotting fees associated with launching a product that can be as high as $250,000 in addition to the cash outlay with the initial stocking orders. Sometimes these fees are negotiable, sometimes they are not. Having a certified minority-owned status (woman-owned, veteran-owned, black-owned, LGBTQ-owned) can sometimes help you get a reduction in these fees.
We started our DTC brand with swim as our hero product, and our strength in this category proved to be a good entry point for wholesale. As we set our sights on further expansion and growth for Fair Harbor, including an assortment for 365 days of the year, our established relationships with wholesale partners have proven invaluable to this strategy. One consideration we’ve had to address is realigning our production calendar for wholesale, but thanks to our agile team, we solved the issue, and it’s been well worth the effort.
Within one year of launching Indy Sunglasses online, I was picked up by TopShop which was the largest brick & mortar chain store at the time in my industry. I quickly launched in 8 of their stores across the US with no knowledge at the time of how the experience would be. My advice would be to not rush into every location as this means large outgoings and stress for your business, especially if you are just starting up. Focus on perfecting your brand in one of their locations, learning how their customers are, what your top sellers are with their clientele, then use that knowledge to slowly start expanding into more of their locations so you can really hit targets going forward and know their store well. Think carefully about your display, you want something to stand out amongst your competition. We made our displays out of wood, painted white, which was admired by many. Make sure your logo is also visible for extra exposure & you're stocked up on best sellers for holidays etc.
"Our advice would be to start with a limited footprint and work to get great velocity results – focus on the best chain account for your product, for Gimme this was Whole Foods, and/or limit the geographic area. By focusing on steady distribution, you’re ensuring your brand can supply enough product for the big chain stores since you only get one shot and it’s challenging and expensive to get your foot in the door. Be the leader in your category in that chain account which will initiate the data needed to show the next chain stores that your brand deserves shelf space given the performance." - Annie Chun, Co-Founder of Gimme Seaweed, and Steve Broad, CEO and Co-Founder of Gimme Seaweed
My experience is that the problem is not so much getting into the Brick and Mortar stores than staying there. Choose a partner to work with and show them some love. Promo's, discounts, digital advertising support etc. The other stores will follow. Side advice, watch your margins, whatever you think this will cost, double it.
The principle "what got you here won't get you there" is crucial when transitioning from e-commerce to brick-and-mortar. In e-commerce, you're focused on keywords and full-funnel conversions. However, physical retail is a different beast; it's about branding, awareness, and creating demand at a macro level. When we took our Mt. Angel Vitamins line into large chain stores, we realized that online tactics wouldn't cut it. We invested in in-store branding, including shelf-talkers and endcap displays, to capture customer attention. Unlike online shoppers who explore, brick-and-mortar customers stick to what they know. You have to make them want to know you. So, as you scale into physical retail, remember that your e-commerce playbook needs to be adapted. Focus on creating awareness and demand to make your product the go-to choice among myriad options.
"Really understand your product, customer first and focus on launching locally before going broader. You can learn a lot from seeing it in your local stores and iron out any issues that pop up and build the playbook for launching with more scale." - Caleb Wang, CEO, MìLà MìLà (www.eatmila.com) is a growing modern Chinese food brand that specializes in soup dumplings, noodle kits, and more. Since their signature soup dumplings launched direct-to-consumer (for nationwide shipping) in 2021, they've sold a whopping 20 million to date - and have a nearly perfect 5-star rating from over 8,000 people. The dumplings made their retail debut in April 2023 in the PNW, where they're headquartered (like Town & Country, Metropolitan Market and QFC stores in Washington and Oregon). They have been expanding to Costcos in the Bay Area & PNW region this summer. They'll be entering more chain retailers by the end of the year!
I am submitting this on behalf of my client. Lauren Evans, Brand Manager at Beech-Nut Nutrition Company, shares her insight on launching products in chain retailers. LinkedIn profile: https://www.linkedin.com/in/lauren-evans-5ba21849/ "It sounds simple but I think the best advice is to use data and insights to tell a compelling story to whichever retailer you are looking to sell your product to. At Target, we used data and insights to clearly show an unmet need in the Toddler Snacks category- better-for-you treats- and showed how our product, Brownies with Hidden Veggies, addressed that need. Target has been a long-time supporter of the idea of a brownie in the Baby and Toddler aisle so their partnership throughout the development of the item was also crucial. They were particularly excited that this product is one of a kind (the first Brownie in the Baby and Toddler space) but still delivers ingredients like fruits & veggies. It’s a win-win for Beech-Nut and Target."
Following the 2008 recession, we diversified our sister brand, He-Shi, and sold into pharmacies and retail. We had to move to where our consumers were shopping. We used to think winning over a buyer and getting our products on the shelf was enough, but it’s not. You must support and create demand for the product otherwise no one will buy it. We built our business from the ground up by getting onto the street, in the stores talking to people, demoing products, and more. That doesn’t happen when you land a large retailer, and we didn’t realize how much spend you need to make it work. It’s difficult for smaller, owner-led brands to be creative and stand out from others with huge budgets. However, for me, that’s what makes it exciting; we can make decisions quickly and have a great rapport with our customers. Make sure your budget and resource are assigned for new opportunities or projects before you jump headfirst into them. Have a test-and-learn approach - fail fast, fail cheap
Chiwis is a women-led and all-natural upcycled fruit chip company. We have been in business for less than three years, having launched during the challenging times of the COVID-19 pandemic. In that short time, we have secured top-tier placements with brick-and-mortar chains, such as Costco and Whole Foods, by being scrappy and having a deep understanding of the retailer's prerequisites. Costco, for instance, requires a substantial 20% price reduction per gram and mandatory SQF certification for food safety. Additionally, brands need to ensure they have a robust cash flow to meet the specified sales targets per store per week and stay afloat. Brands should also capture buyer interest through distinctive product offerings and compelling branding. Never go in blind to meetings with retailers because first impressions can make or break your chances at securing key partnerships as a startup brand that is making a name for itself.
Stay T.R.U.E. to your mission, core values, and brand identity as you scale your business. Every decision, from store layout to product selection, should reflect and reinforce your unique value proposition. Stay true to your brand's principles while adapting to new markets, ensuring a consistent experience that resonates with customers and builds trust and loyalty. Along that line, you want to prioritize building solid relationships across the board, including your customers, suppliers, and employees for clear communication that can help you improve your brand and avoid any missteps. Provide exceptional customer service and listen to customers’ feedback - they’re the backbone of your business. Lastly, Foster a positive work environment for your employees, as happy and motivated team members will contribute to your overall success.
Collaborate with chain store's marketing team to utilize co-op advertising programs, boosting brand exposure and driving sales. By sharing marketing costs and tapping into the store's existing customer base, you gain a competitive edge in scaling your business. Co-create impactful campaigns with the store, reaching a wider audience and maximizing your brand's visibility within the chain stores.
Build up a strong capital. Be a minimalist for at least the first 4 years. Just like it takes a fruit tree 4 years to produce fruits you should nurture your new business for the same amount of time. As your business grows you must be grateful and appreciate any help from other people . Nobody can be a success without the help of others .
Answered 3 years ago
Hi Nina, How are you? I saw your post on CZARS and wanted to submit Beauty Concept Brands founder & CEO Karina Sulzer. Her brand, PaintLab was recently brought into Walmart stores with gorgeous displays after the brand was selected in August to be one of five members of the big-box retailers Walmart Start beauty You can read about it here https://beautymatter.com/articles/paintlabs-press-on-nails-walmart and here https://www.glossy.co/beauty/walmart-ups-push-to-be-the-next-indie-beauty-hotspot/. Her answers are below: Be persistent. Scaling is exciting and challenging at the same time. Staying true to your brand, understanding who your customer is and being ready to work endless hours is all part of the journey to success with your brand in any retail landscape. There are a lot of moving parts when growing your brand, from visual merchandising to marketing to supply chain, they all work hand in hand and understanding each piece is hugely critical to growing.
Scaling into major chain stores is a defining moment in a brand's lifecycle, and it requires a nuanced strategy. First and foremost, never stop innovating your product. Chain stores are drawn to uniqueness and proven consumer engagement. In essence, your product shouldn't just fill shelf space; it should command it. Moreover, channel your efforts with laser focus. It's tempting to go broad and target every store, but that's a rookie mistake. Ascertain which chains align with your brand's ethos and target market. Essentially, you want to be the big fish in a specific pond before you rule the ocean. Patience is your closest ally here. You might not see instant ROI, and that's perfectly okay. Understand that breaking into brick-and-mortar is a marathon, not a sprint. There will be hurdles—supply chain logistics, compliance, you name it—but resilience is key.
"In the end, sell-through is more important than sell-in. It is important to consider how the brand that you've built shows up in retail, and to find a way to make sure your brand message makes it through the clutter when deciding to partner with a retailer. Giving up some control is part of the decision when you step into wholesale, but some retailers are better than others at representing your brand. That matters."