Just
about everyone with a great idea for a new gadget dreams of launching a new
product in the mass market. It used to be a lot easier for a small company to
launch new products than it is today. Years ago, a small company with a new
product or idea could start with neighborhood retailers, first building a local
customer base and then fanning out across the region, the nation, or the globe.
But the retail landscape has changed tremendously with huge chains with thousands
of outlets dominating the market today. Over the last 15 years countless small
chains and independent operators have either been swallowed up by their larger
rivals or just gone belly up because they couldn't compete with the behemoths. This
makes it much more difficult for small companies to launch their products
because a) there are fewer retailers to approach and b) there are thousands of
companies competing for the attention of fewer and fewer buyers.
Twenty
years ago, trade shows could often be a cost-effective way to introduce a new
product to thousands of potential buyers but like retail, the trade show
industry has seen a wave of mergers, acquisitions and drop outs. A lot of the trade
shows that used to cater to the small- and mid-sized operations have seen their
attendance dwindle and lots of them have just disappeared entirely.
U.S.For
example, the North American Men’s Sportswear Buyers (NAMSB) show used to be one
of the biggest apparel trade shows in the US but now it’s gone. For years,
NAMSB was the trade show that
retailers of all sizes attended to check out the latest and greatest upcoming
styles. It was also where some now-famous names got their start in the mass
market. At a NAMSB show (many) years ago a friend wanted me to meet the owner
of a new company that she knew was going to be hot. We walked up to a small
booth staffed with just one guy showing off his new t-shirt designs—his name
was Stussy and a year or so later his company took off. For him, the NAMSB show
was the ideal springboard to success. Today though, there are fewer shows to
choose from and they’re a lot more expensive, making them a bigger gamble. So
if you’re thinking about doing a trade show you’d best be prepared to do your
homework, invest some money and do it right or you’ll be setting yourself up
for failure.
What
does this mean to a small business with a great product or idea? What it means
is that yes, it can be tough to launch a new product in the mass market but it
also means that a company can hit the big time a lot faster today than in the
past. So what is the secret to selling to Wal-Mart or other large retailers? For
the novice, the answer is that there is no easy answer—launching a product in
the mass market is not for the faint of heart but it can be done. The answer lies in doing your homework:
- Know your business—how are you going to produce the product and how will you distribute it? Do you have the capacity (production and financial) to meet the demands of the mass market?
- Know your product—what sets your product apart from the competition? What makes it unique? What is its special appeal?
- Know your retailer—where does your product fit in the store and how are you going to display it?
Research your target vendors—what are they looking for in new products? What is their process for reviewing new vendors?
- Know your customer—who is going to buy your product and why are they going to buy it?
- Know your marketing plan—how are you going to get the word out about your product to your
customers?
Keep up the great writing. I really like reading what you have to say. Thanks.
Posted by: Katrina | October 03, 2011 at 12:14 PM