FEATURE mily Affair eing family owned is a competitive advantage for retailers.
The term ‘family business’ might conjure images of a quaint corner shop or independent flooring retailer, but some of the UK’s biggest companies are ‘family’ businesses and marketing them as such can deliver a competitive advantage. Particularly now, in fact, at a time when, as I mentioned in my last column, large organisations are losing their popularity and consumers are rooting for the little guy. David is being favoured over Goliath.
The evidence keeps coming to show that independent local specialists (and traditionally family businesses) are where people want to shop. New figures from the Local Data Company showed that a total of 31,405 independent units opened in 2020. Further proof of more localised shopping habits is seen in a survey by Barclaycard, which found that nine out of ten people who had shopped locally would continue to do so. Consumers are staying local and local shops are the places for human contact and personal service when it is most needed.
Long gone are the days when family businesses were seen as slightly old-fashioned and a little less professional when compared to shareholder-owned firms.
Today, there are over 5 million family businesses in the UK, employing 14 million people and more than 50% of all employees in the private sector. Of the 5 million family-owned businesses, nearly 80% are micro- businesses with no other employees, and a further 901,000 employ between one and nine individuals. (IFB Research Foundation 2018.)
The flooring industry is flush with ‘family’ businesses. Independent retailers in our sector are bucking the trend both in terms of numbers and performance, while, on the manufacturing side, the likes of Cormar, Brockway, Cavalier and Ulster are still proudly, and very successfully, family owned and run.
Many of the most successful big retailers on the beleaguered high street are also family owned (think Aldi, Lidl, Primark), while bakery brand Warburtons, now on the fifth generation, has used its family identity in its advertising on and off throughout its history.
Promoting one’s business as a family brand is, I would argue, in the current climate, a highly beneficial and potent weapon and helpful to growth and reputation. It provides an opportunity to create a competitive advantage, add a point of differentiation and give a business ‘an edge’ and an identity that consumers can relate to.
It is also a powerful tool in building and reinforcing trust with consumers. It helps you move away from being a
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faceless organisation (at a time when there is distrust in big brands and organisations) and shows consumers the real people behind the business. Our most successful advertising campaign at the Carpet Foundation was called ‘Real People Real Experts’ wherein we used, and name-checked, five real retailers in various guises, emphasising the personal touch and expertise that one gets from an independent family-run retailer.
There are, of course, downsides and promoting the family element is not without risk. One can be subjected to greater scrutiny and reputational risk is heightened should there be any misdemeanours. Family feuds, as I know only too well, can swiftly undo all the good done over preceding generations. Family members can be promoted to jobs they are not suited or qualified for and sound business judgement can be clouded by the desire to preserve wealth. Separating business issues from personal matters at home is another potential pitfall. Furthermore, you can’t just do it casually and stamp the words ‘family business’ on your website or letterhead and think job done. It has to permeate through the business.
Family businesses are good for local economies. They can also, and invariably do, play a pivotal role in their communities in which they are engrained and to which they are genuinely committed. They contribute to local causes, from large-scale projects, such as helping to rebuild the church roof or funding a new hospital wing to sponsoring local sports teams and charities, all of which enhance their reputation and standing.
We are living in a time where, thanks to the pandemic, community spirit is of the upmost importance and family businesses have never been more relevant, appreciated or fashionable.
One of the best billboards I saw recently put it beautifully:
“When you buy from a local business, you’re not helping a CEO buy a holiday home, you’re helping a little girl get dance lessons, a little boy his team jersey and Mum and Dad to put food on the table.”
Family businesses really care and there is a sense of being part of something where their voice is heard, recognised and appreciated. They breed loyalty from staff as well. The manufacturing side of our industry is scattered with employees from the same family who have worked for the same company for generations – and proudly so.
Now is the perfect time to shout about being family owned and run as it will certainly resonate with consumers.
www.carpetfoundation.com Tomorrow’s Retail Floors | 09
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