John Bagshaw | COMMENT AND OPINION
The MD of IDS praises retailers that found new ways of doing business during lockdown and reminds those finding it challenging how distributors can help them through tough times
‘We’re all in this TOGETHER’
I
t’s been a torrid six months with the economy, livelihoods and personal lives challenged in the most unprecedented ways. September is typically the month when, refreshed from leaving the summer hols behind us, kids get back to school, business resumes its stride and everyone aims for a good autumn quarter and Christmas break and then looks ahead to the prospects of a new year.
I’d like to think we can still have this mindset even in the face of the challenges that are undoubtedly ahead. Since lockdown was eased, we have seen businesses giving it their best to make their showrooms as safe as they can be to encourage customers back. They have, and continue to show, a tremendous can-do attitude in adapting to new methods of doing business and some of this is likely to continue long after the pandemic threat has receded. One retailer gave me a very positive account of how he had decided to offer free initial 30-minute design consultations via Zoom, inviting customers to give him a virtual tour of the room they wanted to renovate. The relaxed chat and informality proved very successful and has progressed into a number of projects. He also felt that it had the benefit of making working with a kitchen retailer more accessible to a wider audience. Many retailers have also developed virtual tours of their showrooms,
recognising that the online experience is going to play a bigger role than in the past. While increasing digitisation of sales will be key, I still believe many consumers will want to see, touch and feel products in showrooms before they are installed in their homes.
Hygiene is now uppermost in consumers’ mind. We were open during lockdown, supplying customers who were providing essential services to the NHS, and since it has eased, we have seen definite surges in demand for work surfaces, luxury vinyl tile flooring and bathroom wall panelling. During the hiatus, consumers have had the time to rethink, research and plan changes they want to make to their homes and new decorative surfaces that are durable, streamlined and easy to clean are figuring highly. We had thought that all the positivity about our Showerwall bathroom panelling at kbb Birmingham 2020 would be lost during lockdown, but we have been pleasantly surprised at how strongly it has bounced back.
Many retailers have developed virtual showroom tours, recognising that online is going to play a bigger role than in the past
Regarding the economy, I think we are looking more at a W-shaped recovery than any of the Us and Vs being mooted. The past couple of months have been about dealing with immediate demand and the backlog of work that has required rescheduling. House building has also resumed, and it is currently showing an uplift in demand, but we need new enquiries coming through at the same time.
During the past few months, there has been the spirit of ‘we are all in this together’ – and we are. Understanding, compromise and partnership-based thinking are paramount. We are actively working with customers to plan and order products in advance so that we can group their orders into one delivery. Multiple products delivered once a week to a site brings benefits operating within Covid- compliant guidelines. It also has environmental spin-offs, with more efficient fuel usage and less road traffic. The past few months have shown how nature can repair itself and today’s consumers, especially the younger generation, have the environment, sustainability and considered consumption more in mind than ever. The CBI is keen on encouraging business to restart with a greener agenda. Distributors often feel they are caught in the middle. Of the many services a distributor provides, one of the key things we never talk about is that we extend customers a line of credit. We have 8,000- plus customers on our ledger, and we help them manage their cash flow. All the associated costs of a manufacturer or a business not having to stock the materials themselves sits with the distributor and working efficiently with your distribution partner enables you to flex and manage your cash flow wisely. Cash is king – it always has been, but now more so than ever.
September 2020 · 25
OPINION JOHN BAGSHAW
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