Retail businesses have more opportunities than ever before to find products and sell them to consumers. Online shopping, specialty stores, and even big box stores all compete for a piece of the consumer-packaged goods (CPG) market. A CPG is a product that comes in its own packaging and can be purchased without any additional service or customization. CPGs are mainly used to sell food or beverages like sodas, candies, and cereal. However, other consumable products like makeup, cleaning liquids, and body care products are also part of the CPG market. When you are opening a retail store, it’s important to understand how selling CPGs can help you improve your profit margins and keep customers coming in the doors. Here are some tips to help you choose the right CPGs for your retail venture.
Choose Consumer Packaged Goods That Align With Your Customer Profile
One of the most important things to consider when choosing a CPG is whether or not it aligns with your customer profile. If you sell to a specific type of customer, choose a CPG that is popular with that customer type.
For example, if your target audience includes people who are eco-friendly, you would want to consider offering options that are fragrance-free, have recycled packaging, or from companies that give back to environmental causes. Being successful in your retail business means you need to understand how different segments of your market will interact with your products.
Work With Vendors Who Can Connect You With Multiple Product Sellers
Finding individual products can be very time-consuming. Instead, savvy retailers connect with vendors that can help them interact with many different product sellers. When you use something like the RIVIR platform, you can save a lot of time in finding the right CPG for your shelves. You can easily replace suppliers who send subpar products, and you can find new lines to add to your store more easily. These vendors often offer services to retailers to help them more easily find a lot of different CPGs all in one simple spot.
Be Willing to Outsource Parts of the Process
You may be thinking that outsourcing is a bad idea. But when used strategically, outsourcing is a great way to grow your retail business. You can hire someone to order the products and make product selection decisions that align with your company. You can hire someone to manage your marketing, and you can even hire phone reps to handle calls to your retail location. You are not on your own. These outsourced services can help you manage different aspects of your retail business so that you can grow your company and your reach.
Let Companies Set-up Samples and Promos for Customers to Try
Want to drive more traffic to your store on a certain day of the week? Then allow companies to come in with their samples to share with your customers. Samples and promos are a great way to get customers in the door. They can be used to educate customers about new products. Promos help you build customer loyalty, and they can be used to generate more brand awareness.
Create Exclusive Partnerships With Brands to Sell in Your Store
Kohl’s partnered with Sephora to create a makeup experience inside Kohl’s retail locations. This type of exclusive partnership is beneficial to both brands. Sephora can set up a shop inside an existing store that already has traffic. Additionally, it drives new business for Kohls from customers who may not have access to a standalone Sephora nearby. Customers come for Sephora because it’s local and easy to access, and it ends up benefiting Kohl’s whenever they purchase. Think about how you might be able to do something similar in your retail store. Perhaps you are the only retailer in 50 miles who offers a specific brand. Make sure to highlight that and bring attention to it in your store and marketing efforts.
Use CPGs to Learn More About Your Customer Preferences and Trends
One interesting benefit of CPGs is that they can help you learn more about your customers. You can use them as a source of information on what your consumers want, need, and will buy, and at what price point. If you’re looking to launch new products, you can pay attention to the trends and what’s happening in your store already. And if you’re new to CPGs, contact RIVIR to gain access to amazing resources and great suppliers to fill your retail shelves.