INDUSTRY COMMENT: YEAR IN REVIEW
TRUSSANOMICS AND THE PERMACRISIS Mike Smith
Head of Commercial, EFG Housewares
I read in the paper a couple of weeks ago that the word of the year was ‘permacrisis’ and I feel that is probably
about right. We have lurched from Covid pandemic to an illegal war in Ukraine, a huge rise in energy costs, record inflation and of course the absolute disaster that was ‘Trussanomics’ and the ‘Mini Budget’.
All of which has put an inevitable squeeze on business and living standards alike, however for us at EFG it has not been all doom and gloom. As in past financial downturns, people have tended to look for the basics and fortunately the majority of the 50,000 products we sell could be described as thus, so it seems we are slightly insulated from the worst of it (or so it seems at the time of writing). As in previous years, but maybe even more so this one, we made a conscious decision to listen to what our customers demand from us, and we have invested heavily in the ‘Coca Cola’ lines, so we have the stock when our clients need it, and so far that is paying
dividends. Where we also win is that we can and do assist in managing our customers’ cash flow due to the volume of products we stock. No more was this clearer than with our very largest customers as their spend continued to rise and their spend with direct importers declined.
The pace of change at EFG continues to accelerate as the business develops from a well- known regional wholesaler to a nationwide distributor, and we an anticipate and expect that to continue in 2023. Happily, we continue to welcome many new customers to our site in Enfield and the rise of our website registrations is a huge driver for growth.
THE FLIP SIDE OF THE CHALLENGE IS THE OPPORTUNITY Ricky Johal
Head of Marketing, Communications and Brand, DK Tools
The evolving landscape has served fresh disruptions and continually given us (and consumers) new challenges
to grapple with. As the world and its shoppers have been
forced to transform, many have been left with making mindful choices and value- driven purchasing decisions. However, big challenges also
represent bigger opportunities - to cement loyalty and acclimatise to raised expectations for convenience and immediacy. So here are my top seven recommendations for the keys to success in 2023! ONE: Confidence in shopping online and revisiting websites before making a purchasing decision continues to accelerate, so ensure you are integrating keywords and search terms to
GREENER GARDENING SOLUTIONS
Vicky Nuttall Director, GIMA
This year the value of gardening has been cemented even further as news headlines featuring war,
a looming economic crisis and political instability have pushed us back into the safety
14 DIY WEEK DECEMBER 2022
of our homes and gardens. As a result, this year – and next – we continue to enjoy market growth. I, for one, applaud those who have contributed to this and maintained consumer confidence when purse strings are being pulled ever tighter in other areas.
The last 12 months have not been easy for those at the coalface, and I expect similar pressures will shape 2023. But we’re in a better position than
most, making now a great time to be part of garden retail. This is especially true when looking at the innovation that is bringing new consumers to gardening, including, most notably, greener gardening solutions. From the new generation to established gardeners, consumers across the board are asking for products that make gardening easier without compromising environmental protection.
So many brands, including
vast swathes of GIMA members, are going above and beyond by presenting eco-friendly products and revising business practices and packaging solutions to ensure a more sustainable future. It’s heartening to see the industry move forwards with a common goal, sharing knowledge and keeping lines of communication firmly open. We’ve learnt a lot over the last few years, and this will certainly stand us in good stead as a new season opens up before us.
www.diyweek.net We are now processing
hundreds of orders weekly through www.efghousewares.
co.uk and it is clear to see from the delivery addresses that we are doing something right! We launched our ‘Super Sundays’ program back in April 2022 and it’s been one of the most successful roll-outs in our history, 16 best of the best selling lines at or near cost every single Sunday. Our customers are now actually waiting for the email to drop!
At the time of writing, we are
rolling out our new purpose-built operating system that will allow us to improve our service even further and hope that 2023 can be a start of a revival rather than the dawn of another crisis!
make you discoverable versus invisible. TWO: General use of enabled devices has already shifted from laptops to smartphones, so if your content is not fully optimised for mobile, you are creating barriers to purchase. THREE: Think in terms of shopper missions and focus communications on being more solution-led versus product-led. This approach will unlock a wider audience. FOUR: One of the most valued features of a shopping experience in-store or online is price visibility.
FIVE: Never underestimate the power of social media and the impact of digital interactions to improve perceptions of your brand and/or business. SIX: Continually generate and evaluate insights (qualitative and quantitative) to improve the customer experience (CX) and use online preferences as a steer for navigating shoppers in-store. SEVEN: Environmental
responsibility has the power to trigger an emotional response that can switch on or switch off prospective customers, so consider this strategy without ‘green washing’.
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