{"id":12007,"date":"2023-02-16T04:14:00","date_gmt":"2023-02-16T12:14:00","guid":{"rendered":"https:\/\/www.rangeme.com\/blog\/?p=12007"},"modified":"2023-02-14T14:17:50","modified_gmt":"2023-02-14T22:17:50","slug":"success-at-the-shelf-in-the-u-k-advice-from-a-buyer-to-brands","status":"publish","type":"post","link":"https:\/\/www.rangeme.com\/blog\/success-at-the-shelf-in-the-u-k-advice-from-a-buyer-to-brands\/","title":{"rendered":"Success at the Shelf in the U.K.: Advice from a Buyer to Brands"},"content":{"rendered":"\n<p class=\"has-drop-cap\">If you are considering entering the U.K. market, there are several things you should know about doing business with retailers there. Recently, RangeMe published a blog post on <a href=\"https:\/\/www.rangeme.com\/blog\/how-to-get-discovered-by-u-k-retailers-understanding-british-consumers\/\" target=\"_blank\" rel=\"noreferrer noopener\">understanding the British consumer<\/a>, focusing on overarching trends across the country\u2019s retail landscape. In this post, We\u2019ll get a buyer\u2019s in-the-trenches perspective on some important items for brands to consider when looking to get on the shelves in the U.K.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"560\" height=\"372\" src=\"https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.02.01-PM.png?auto=format%2Ccompress\" alt=\"\" class=\"wp-image-12015\" srcset=\"https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.02.01-PM.png?w=560 560w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.02.01-PM.png?w=300 300w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.02.01-PM.png?w=375 375w\" sizes=\"auto, (max-width: 560px) 100vw, 560px\" \/><\/figure>\n<\/div>\n\n\n<p>Peter Mudahy is the CEO of <a href=\"https:\/\/www.pakcosmetics.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Pak Cosmetics<\/a> (pictured to the right), one of the largest multicultural beauty retailers in the U.K., with 27 stores and a thriving e-commerce business. As a RangeMe member who has participated in more than two dozen <a href=\"https:\/\/ecrm.marketgate.com\/sessions\" target=\"_blank\" rel=\"noreferrer noopener\">ECRM<\/a> and <a href=\"https:\/\/ecrm.marketgate.com\/about\/ecrm-europe\" target=\"_blank\" rel=\"noreferrer noopener\">ECRM Europe<\/a> sessions, he has a ton of experience engaging with global suppliers looking to enter the U.K. market (In fact, he\u2019s at the ECRM Europe Beauty Sessions meeting with global suppliers as I write this.)<\/p>\n\n\n\n<p>I sat with Mudahy virtually for an hour-long discussion to pick his brain for advice to suppliers looking to do business with U.K. retailers. The following are some insights I gleaned from our conversation.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-jetpack-slideshow aligncenter\" data-effect=\"slide\"><div class=\"wp-block-jetpack-slideshow_container swiper-container\"><ul class=\"wp-block-jetpack-slideshow_swiper-wrapper swiper-wrapper\"><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"2048\" height=\"1536\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-12023\" data-id=\"12023\" src=\"https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_121510000_iOS.jpg?auto=format%2Ccompress&amp;w=1024&amp;h=1024&amp;fit=crop\" srcset=\"https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_121510000_iOS.jpg?w=2048 2048w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_121510000_iOS.jpg?w=300 300w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_121510000_iOS.jpg?w=1024 1024w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_121510000_iOS.jpg?w=1536 1536w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_121510000_iOS.jpg?w=1200 1200w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_121510000_iOS.jpg?w=1300 1300w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_121510000_iOS.jpg?w=1320 1320w\" sizes=\"auto, (max-width: 2048px) 100vw, 2048px\" \/><figcaption class=\"wp-block-jetpack-slideshow_caption gallery-caption\">Pak Cosmetics CEO meeting with suppliers at ECRM Europe&#8217;s Beauty Session<\/figcaption><\/figure><\/li><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"2048\" height=\"1536\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-12024\" data-id=\"12024\" src=\"https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_133333000_iOS.jpg?auto=format%2Ccompress&amp;w=1024&amp;h=1024&amp;fit=crop\" srcset=\"https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_133333000_iOS.jpg?w=2048 2048w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_133333000_iOS.jpg?w=300 300w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_133333000_iOS.jpg?w=1024 1024w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_133333000_iOS.jpg?w=1536 1536w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_133333000_iOS.jpg?w=1200 1200w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_133333000_iOS.jpg?w=1300 1300w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/20230207_133333000_iOS.jpg?w=1320 1320w\" sizes=\"auto, (max-width: 2048px) 100vw, 2048px\" \/><figcaption class=\"wp-block-jetpack-slideshow_caption gallery-caption\">Pak Cosmetics CEO meeting with suppliers at ECRM Europe&#8217;s Beauty Session<\/figcaption><\/figure><\/li><\/ul><a class=\"wp-block-jetpack-slideshow_button-prev swiper-button-prev swiper-button-white\" role=\"button\"><\/a><a class=\"wp-block-jetpack-slideshow_button-next swiper-button-next swiper-button-white\" role=\"button\"><\/a><a aria-label=\"Pause Slideshow\" class=\"wp-block-jetpack-slideshow_button-pause\" role=\"button\"><\/a><div class=\"wp-block-jetpack-slideshow_pagination swiper-pagination swiper-pagination-white\"><\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>It\u2019s a smaller market with great opportunities<\/strong><\/h2>\n\n\n\n<p>Right off the bat, suppliers \u2013 especially those from the U.S. \u2013 should be aware that the U.K. is a relatively smaller market compared to some other countries. Retail sales are \u00a3456bn, compared to approximately $5 trillion in the U.S. But it\u2019s a growing market with many great opportunities for suppliers looking to expand their reach.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Get up to speed on U.K. regulations for consumer products<\/strong><\/h2>\n\n\n\n<p>While the U.K. is no longer part of the European Union, it currently follows the <a href=\"https:\/\/www.rangeme.com\/blog\/taking-a-closer-look-at-allowed-health-and-beauty-ingredients-in-the-eu-and-us\/\">EU regulations<\/a> when it comes to consumer products, and these are much more strict than those in the U.S. \u201cI think the best way to explain it is that in the U.S., regulators tend to address a concern with a product or an ingredient after something negative has happened,\u201d points out Mudahy. \u201cWhereas in Europe, they are very much preventative; if they think an ingredient is likely to harm a consumer they will ban or restrict it.\u201d<\/p>\n\n\n\n<p>As the U.K. is no longer part of the EU, it\u2019s currently going through a consultation process as to what their specific regulations will be in the future, but for now, they are following those of the EU.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1666\" height=\"1104\" src=\"https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.05.30-PM.png?auto=format%2Ccompress&amp;w=1024&amp;h=1024&amp;fit=crop\" alt=\"\" class=\"wp-image-12021\" srcset=\"https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.05.30-PM.png?w=1666 1666w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.05.30-PM.png?w=300 300w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.05.30-PM.png?w=1024 1024w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.05.30-PM.png?w=1536 1536w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.05.30-PM.png?w=1200 1200w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.05.30-PM.png?w=1300 1300w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.05.30-PM.png?w=1320 1320w\" sizes=\"auto, (max-width: 1666px) 100vw, 1666px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Sustainability and the plastic tax<\/strong><\/h2>\n\n\n\n<p>To provide a clear economic incentive for businesses to use recycled plastic in their packaging, and to encourage more recycling and the collection of plastic waste, the U.K. <a href=\"https:\/\/www.gov.uk\/government\/publications\/introduction-of-plastic-packaging-tax-from-april-2022\/introduction-of-plastic-packaging-tax-2021\" target=\"_blank\" rel=\"noreferrer noopener\">applies a tax to plastic packaging<\/a> that is manufactured in, or imported into the U.K., that does not contain at least 30% recycled plastic. (Plastic packaging is predominantly plastic by weight. The tax does not apply to any plastic packaging which contains at least 30% recycled plastic, or any packaging which is not predominantly plastic by weight.)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>You must have a designated Responsible Person<\/strong><\/h2>\n\n\n\n<p>All medical devices, electronics, cosmetics and food supplement products available to consumers must have a \u2018<a href=\"https:\/\/www.gov.uk\/guidance\/making-cosmetic-products-available-to-consumers-in-great-britain\">Responsible Person<\/a>\u2019 who ensures safety measures and legal obligations are in place. A Responsible Person can be a business or an individual (including sole traders), and must have a U.K.-established address. The Responsible Person can be either the manufacturer, importer, or distributor, if they label the product as their own (for example, using their brand name); or an appointed company or person (who is named by the manufacturer or the importer).<\/p>\n\n\n\n<p>\u201cThis law is very strict,\u201d says Mudahy. \u201cIf your product doesn\u2019t have a U.K. address on it, you can\u2019t place it on the market. You put their details on the back of your product, they will hold your product information, and if someone wants to contact the manufacturer then they have an address they can write to that can legally take service of their inquiry. Several providers out there offer these services, such as <a href=\"https:\/\/www.obelis.net\/\">Obelis Group<\/a>, which works with many of my customers.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Other costs of doing business for retailers<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.13.26-PM.png?auto=format%2Ccompress\" alt=\"\" class=\"wp-image-12026\" width=\"323\" height=\"486\" srcset=\"https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.13.26-PM.png?w=550 550w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.13.26-PM.png?w=200 200w, https:\/\/rangeme-blog-images.imgix.net\/blog\/wp-content\/uploads\/Screenshot-2023-02-14-at-2.13.26-PM.png?w=300 300w\" sizes=\"auto, (max-width: 323px) 100vw, 323px\" \/><\/figure>\n<\/div>\n\n\n<p>As you prepare to negotiate prices and margins with U.K. retailers, you have to keep in mind that there are many costs they have that must be considered. \u201cThe cost of running my business is now over 40%, so that means I need to make at least a 60% margin to make a profit,\u201d says Mudahy.<\/p>\n\n\n\n<p>Among the items adding to these costs are the increased prices of imported goods and credit card fees incurred by shoppers increasingly moving away from cash payments. For example, just a few years ago, more than half of Pak Cosmetics shoppers paid in cash. Now, 90% are paying with credit cards, which means more credit card fees for his business.&nbsp;<\/p>\n\n\n\n<p>Also, sales tax in the U.K. is included in the price; it\u2019s not added to the price that the consumer pays, but rather taken from the retailer. So it must be built into the price of the product.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Consumers want brands they recognize<\/strong><\/h2>\n\n\n\n<p>U.K. consumers are a bit hesitant to take a flier on a brand they don\u2019t already know and trust, which means that retailers will also be hesitant to put a brand on the shelf unless it has a serious marketing push behind it. \u201cFor us at Pak Cosmetics, we like to be a supplier of demand,\u201d says Mudahy. \u201cWe\u2019re not going to build your brand for you. I need products that are going to increase my basket volume, get new customers through my doors and grow my business. If you\u2019re a brand that can help me do that, I\u2019m open to you.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Delivering value is key<\/strong><\/h2>\n\n\n\n<p>Inflation has hit the U.K. very hard, and many shoppers are seeking to get the biggest bang for their buck \u2013 or rather, for their pound. Because of this, Mudahy is seeing them gravitate toward larger pack sizes, and in some cases, bundles, which tend to do well around holiday seasons. He points out that this is not the case for his more well-heeled consumers, who know what they want and are not impacted by any discounting. So keep this in mind if your products are targeted toward the mainstream consumer. (Pak operates six e-commerce sites, including one for masstige and one for prestige products, and the data show a big difference in shopping behavior among each.)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>There is a need for education<\/strong><\/h2>\n\n\n\n<p>Unlike the U.S., where consumers tend to be very ingredient-savvy, especially when it comes to beauty products, in the U.K., shoppers are still in the dark regarding many of these ingredients, according to Mudahy. So brands should provide some education on their products&#8217; ingredients and the benefits they deliver. This is particularly true of older U.K. consumers, who prefer to be educated about the brands they use, and are less responsive to flashy marketing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Social media and your brand\u2019s digital footprint<\/strong><\/h2>\n\n\n\n<p>Having a strong social media presence is extremely important for brands addressing the U.K. market, both from the perspective of consumer engagement with the brand, but also to help drive these consumers into the store. But Mudahy points out some differences between younger and older consumers and how each interacts with social media.<\/p>\n\n\n\n<p>\u201cI\u2019m seeing the younger generations following more of the global influencers,\u201d says Mudahy. \u201cThey are looking at what is going on in the U.S., Canada, and other countries. \u201cNow there is some risk to that, because what tends to happen is that they come into the store looking for a product that\u2019s not in the U.K. market. They don\u2019t want to know why; they don\u2019t want to hear about compliance; they don\u2019t want to hear about challenges in logistics. They just want to know why we don\u2019t have it. However, this doesn\u2019t happen as much with the older generations, as they tend to follow local or regional influencers to get their information.\u201d<\/p>\n\n\n\n<p>In addition to social media, it\u2019s also important for brands to show how they will include retailers in their entire digital ecosystem. The brands that see success in the U.K. are very tuned in to email marketing, paid search, and SEO. \u201cWhen I sit with a brand I want to know what they are going to do to help us to be a part of their digital footprint,\u201d says Mudahy. \u201cI want to know that when someone goes online to search for their product, Pak Cosmetics comes up in the results as the place to find it.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Advice for brands based in the U.K.<\/strong><\/h2>\n\n\n\n<p>While most of the above points apply to U.K.-based brands, the one advantage that local suppliers have that global suppliers don\u2019t is easy access to the retailers\u2019 stores, and they should take advantage of it by visiting them often. \u201cDon\u2019t assume that you know our business,\u201d says Mudahy. \u201cWalk our stores, see what types of customers are shopping, and come and talk to us. There is probably a lot that we can do for you, and even if we can\u2019t, we certainly know people who can help you in terms of building your brand.\u201d&nbsp;<\/p>\n\n\n\n<p>And if your brand is based in the U.K. RangeMe Premium memberships are now available. Premium memberships come with many benefits that enhance visibility and access to U.K. retailers, including the opportunity to submit products directly to select retailers. To learn more about the benefits of RangeMe Premium, click <a href=\"https:\/\/help.rangeme.com\/hc\/en-us\/articles\/115010144147-What-is-RangeMe-Premium-\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a>.<strong>&nbsp;<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hear from Pak Cosmetic&#8217;s CEO Peter Mudahy as he addresses 10 points brands should know about doing business with U.K. retailers.<\/p>\n","protected":false},"author":47,"featured_media":12012,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[473],"tags":[37,30,29],"class_list":["post-12007","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buyer-spotlight","tag-cpg","tag-rangeme","tag-retail-buyer"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Success at the Shelf in the U.K.: Advice from a Buyer to Brands - 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