While waiting in line for coffee at Starbucks, Katie Cannon overheard something that lead to Sugru, a mouldable glue, landing on the shelves of a US retail chain.
Cannon, head of sales for the London-based company, recalls the occasion, nearly two years ago. The small business had reached some success selling its product online, gathering media attention along the way. But the American retail market was too tempting a prize to ignore.
So Cannon packed her bags and headed for the annual home and housewares trade show held in Chicago, in March, 2013. On her first day in town, a friend took her to see the Container Store, part of a national chain of more than 60 stores, on the hunch that it might be a good fit for Sugru.
The next day, in between visiting dozens of exhibits, Cannon found herself in line for coffee. She overheard a woman standing behind her comment to another one about her shoes. She instinctively turned to look. The woman who made the comment wore a name badge that said, “New Products Buyer –The Container Store.” Cannon says she had to overcome her British reserve in order to blurt out to the woman, “You’ll think this is strange, but…”
She told the woman about visiting the Container Store for the first time the day before, and about her company’s product. She reached into her bag and offered a sample.
Two days later, an email from the Container Store awaited Cannon in London. The rest, as they say, is history.
And though the moment, Cannon admits, was serendipity – it was also, she insists, “engineered luck.” Why? Because she, and her company, had invested time and money in visiting the trade show in the first place, and were ready to meet the demands of a foreign market.
Shawn Outler, senior vice president of multicultural business development for Macy’s, Inc., agrees that small businesses interested in landing their products on the shelves of large retail chains in the US should visit trade shows. But she underscores that the experience should be one of “preparedness meets opportunity,” and not just blind luck. In other words, small businesses should do their homework before boarding a plane, train or car to a trade show.
“Read press releases and annual reports (of large retail chains); see what businesses are working, and what businesses aren’t,” she says.
Macy’s also has another option for small businesses that are owned by minorities or women: an annual, four-day event called the “Workshop at Macy’s.” Small businesses must apply to attend, and pass an interview. A group of about 20 are chosen from a larger pool of around 1,000 applicants. The event is like a “boot camp,” says Outler, with sessions on subjects like marketing, supply chains and “retail math”.
But making it through this event and onto the shelves of Macy’s isn’t easy: after four years and about 4,000 applicants, only 71 small businesses have done the training, and nine have sold their products in the chain’s 800-plus stores.
Similarly, Wal-Mart holds an annual event for companies with products made in the US to pitch to buyers. Now in its second year, the event will be held this summer in the chain’s hometown of Bentonville, Arkansas. Last year’s launch saw more than 500 companies seek 30-minute meetings with buyers, says Cindi Marsiglio, who oversees the program.
Small businesses should not be daunted by Wal-Mart’s reach, with more than 5,000 stores across the US, says Marsiglio. Many products are launched at the local or regional level – such as a plastic taco plate, recently introduced in hundreds of stores near its manufacturing base, also located in Arkansas.
Wal-Mart is looking for, “great, innovative products that customers would like...at a competitive price,” Marsiglio says. Outler, at Macy’s, says having a product that stands out is key. “We want something new or better for the customer than what they have available today. How is it different?”
This is what Chris Parsons, U.S. representative for the Mayborn Group, maker of the Tommee Tippee line of baby products, calls, “relevant differentiation.” His company developed a baby bottle which it says is “closer to nature,” or the natural experience of breastfeeding. Tommee Tippee products are available in Babies R Us, Target and Wal-Mart.
At the same time, it is also important for small businesses to demonstrate that there is demand for their products, Outler says. Parsons calls this being able to tell a “data-backed story.” He says that small businesses nowadays can create and measure demand much easier, via the internet. “The foot in the door can also come from online sales,” he says. “This gives you the opportunity to translate over to bricks and mortar.”
If you’re considering using sales agents, it’s important to meet them in person, says Katie Cannon, of Sugru. “You have to see the whites of their eyes,” she says – meaning you have to feel that you will be able to build a trusting, productive relationship. “The joy and difficulty of business, after all, is that it’s human,” she adds.
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