COMMENT AND OPINION | Simon Bodsworth
SIMON BODSWORTH
OPINION
The MD of Daval Furniture shares his perspective on the market and explains why he thinks only proactive retailers will adapt and make the most of new opportunities ahead
O The two camps
ver the past 12 months, the retail landscape has been challenging, as we’ve adapted to new ways of living, working and being both at work and at home. However, it seems to me that retailers are diverging into two camps as they respond to this evolving situation. My concern is that if we don’t talk, share and innovate together, then this state of paralysis will lead to our entire industry losing out.
Proactive retailers are taking more risks, experimenting with new business models and new communication tools, plunging into the digital world, and increasing their brand storytelling
First up is the proactive retail camp, comprising UK independents who have fearlessly ‘leaned into’ the Covid situation and decided to just go for it. This growth mind- set is not only encouraging for the end user, but also motivates them to try something different and increase communication to both customers and suppliers. I see them speaking openly about what they want to achieve and driving business engagement around their products and involving both staff and suppliers. The proactive retailer has a strong sense of accountability, providing a service that is rooted in shared values with more value-driven elements over a transactional focus. A meaningful business, rather than one driven solely by profi t and loss, is now a priority, and this is well- communicated by the proactive retailers I work with. Smaller, agile retailers are taking more risks by being open to new business opportunities, experimenting with new business models and trying new communication tools. With more and more buying decisions being made online, the proactive camp are plunging into the digital world, increasing their brand storytelling, honing their social media activity and pre-qualifying digital leads.
Customer journey
They can see that the customer journey has transitioned to online, so that the end user has the power to fi nd what they are looking for and then establish where to fi nd it and how to buy it from home. In short, digital services have fi lled the void of in-store trading and proved a great investment for these businesses.
On the other side of the coin is the passive camp, where some retailers have been more accepting of the situation and less active in terms of generating leads and maintaining visibility with the end user.
As they have not been sourcing new enquiries and laying the groundwork for new and repeat business during lockdown, there is a huge lag in sales leads. This, in turn, is creating a knock-on effect with a long-term impact on the sales cycle, which allows proactive retailers to monopolise the market. So we can see that a passive approach is limiting cash fl ow, reducing market share and restricting the fl ow of new and existing clients as well as business expansion. The passive retailer is doing
22
of kitchen retail
more harm than good, rather than focusing on growth and development of output, staff, retail presence and online presence.
A hybrid approach to retail, blending physical and online purchasing in equal measure, is something that the KBB sector needs to embrace. This period of lockdown in the UK has emphasised the growth of digital retailing in the past decade when it comes to marketing, lead generation and end sales.
Personalisation remains a mega-trend as consumers home in on lifestyle and investing in quality. Of course, the low end of the market will always focus on volume and the high end on exclusivity, whereas the middle market remains protected in light of current circumstances very similar to that of the 2008 recession. The introduction of the furlough scheme and stamp duty relief has safeguarded the middle market and ensured the demographic that spends is still able to. This market is seeking out the independent retailer able to cater to their specifi c design and lifestyle. Affordability and fl exibility are in our DNA as a specialist cabinet maker. Quality materials, expert craftsmanship and a bespoke service have always been the foundation of the business. Today’s market is no longer about buying products – it’s all about lifestyle, so the retailer needs to be 100% consumer-focused with the support of quality furniture and appliances.
· July 2021
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