Bumper consumer spending means Christmas is the most magical time of the year for many small businesses. But the sudden rush over the frenzied holiday period also poses many logistical problems, especially if you’re selling overseas.
In fact, planning for Christmas is a year-round project for Bath-based Choc on Choc, which capitalises on ‘Brand Britain’ to sell its luxury confectionery into 10 countries.
Company founder Flo Broughton says: “Our preparation for Christmas starts in January. In that month we decide what products we will be including in our Christmas collection, choosing what we believe will be popular at the end of the year.
“This can significantly affect how well sales go, but is particularly tough when the market is international. We spend a huge amount of time researching buying habits in the countries we supply and reading trend reports from those markets.”
Broughton adds: “The language barrier can cause significant obstacles. If there are misunderstandings, in terms of delivery dates and order amounts, this can have severe ramifications. Work with a credible translator.”
With demand for personalised presents and a wave of new school starts in January ramping up sales ahead of the festive period, MyNametags, an online retailer that sells personalised products to 60 countries, finds Christmas especially hectic.
Founder and chief executive Lars Andersen says: “Our main way of preparing for Christmas is to make sure that we have all the materials, accessories and staff ready to deal with orders as they come in. We try to plan the rota early, to ensure that we have sufficient staff and that the worst times are not always given to the same staff.”
MyNametags makes good use of temp agencies that are able to fill in gaps at short notice. “Typically, we combine core permanent staff who work longer hours, with temporary staff to fill in,” says Anderson.
Spice Kitchen, a Midlands-based food retailer, has a somewhat cheekier method of keeping staff available for its four-fold increase in trade throughout November and December.
The company’s spices are made fresh just before delivery, meaning there is only so much preparation the company can do in advance.
Founder Sanjay Aggarwal explains: “We need to ensure we have as many hands on deck as needed in the final quarter of the year. We are a small company with a large extended family, and friends and family are always keen to lend a hand if needed.”
And how does Aggarwal ensure they stay willing?
“All year, we make nice dinners for people we might need to ask for help. When the time comes, they can’t say no!”
Bridgend-based Cover-Up has sold its protective cases for tablets and mobile phones to customers in more than 140 countries. The company experiences a 300% increase in sales over the Christmas period.
Marketing manager Jen Pascoe says serious planning begins in late August, attempting to prepare every conceivable detail - even down to the type of wrapping paper the company stocks for its gifts. Products going to non-English-speaking countries, for example, can’t be wrapped in designs containing English text.
Pascoe says it’s hugely important to build strong relationships with your supply chain. Not just for the materials that make up your products, but for everything that makes the sale and delivery possible. “Running out of mail sacks or airmail labels at the peak of the Christmas rush is no laughing matter. It’s also crucial that we have all communication, such as any relevant instructions and even invoices, ready prepared in each required foreign language well beforehand, to save any last minute panic.”
For Matt Guffey, marketing director, UPS, (UK, Ireland and the Nordics) planning is vital for businesses of any size, to ensure smooth logistics around the busy Christmas period. “It’s important for retailers to work with a partner that has the expertise and technology to streamline processes so that you can provide reliable and efficient service. Services such as UPS WorldShip software can be critical to getting shipments out quickly without error through the use of printed labels. Additionally, time spent servicing customers during the holidays can be minimalised with shipment alerts that help reduce “where’s my order?” calls.
But even with your stock, staffing, distribution and wrapping paper sorted, the end of the Christmas rush does not signal the end of the chaos, as Danny Doughty, marketing director for Zone Gymnastics and Roch Valley Dancewear has learned.
“There’s an old business adage that a sale isn’t a sale until it’s paid for. These days, it’s not a sale until it’s paid for and then you’ve waited a month,” he says.
The international clothing retailer begins planning its resources as much as nine to 12 months in advance. And that’s not just for the sale. In recent years, returns and refunds have become much more of an issue for all businesses.
Many people now buy multiple sizes to try on and return the ones that don’t fit, or a few different colours to see which they prefer. Following a Christmas hike in sales comes a January influx of returns and refunds. It affects cashflow, staffing, and customer relations too.
Doughty says: “We have multilingual people in all areas to communicate with our customers. Now that online sales are so important, queries can come in at any time of day or night and there is expectancy that they will be answered more or less immediately whenever that is.
“Your customers also expect you to deal quickly and efficiently with their return. If you don’t do this they won’t order again.”
Guffey says it is important that returns are factored before, during and after the Christmas season. “UPS’s Pulse of the Online Shopper survey found that a hassle-free returns policy is a key decision maker for those making online purchases, influencing a consumer’s likelihood to complete a sale,” he says.
“With only 51% of respondents satisfied with the ability to find a retailer’s return policy, it’s essential that retailers acknowledge the value of returns to customers and prepare accordingly.”
- UPS also offers UPS Access Point, a network of locations such as convenience stores, petrol stations and newsagents, which allow busy UK consumers who purchase goods over the internet to choose delivery and returns locations that are near to their home or work. UPS Access Point offers convenient locations and longer opening hours, making returns easier and offering greater flexibility for customers.
Content on this page is paid for and produced to a brief agreed with UPS, sponsor of the Exporting to New Markets hub on the Small Business Network.
