Insights — Channel Creation & New Revenue Streams — 3 min read
What a Consumer Brand Needs Before Approaching Retailers
Walking into a retailer with a great product and a nice website is rarely enough. A retailer needs to know not just what you sell, but how you will help them make money.
In short
Before approaching retailers, a consumer brand needs more than just a good product. You need a robust trade pricing strategy, a clear understanding of your retail margins, a reliable supply chain capable of meeting B2B lead times, and a 'marketing support' package that shows how you will drive traffic into their stores or onto their sites. If you cannot explain why your product will sell through their channel better than the product it replaces, you aren't ready to pitch.
Moving from a purely D2C model into wholesale or retail is a significant step in Channel Creation. It changes your customer from the person who uses your product to the person who makes a margin from your product. If you do not understand that shift, your retail pitch will fail.
A retail buyer is looking for a partner who understands their world: margin, stock-turn, category management, and promotional support. They aren't just looking for a new SKU; they are looking for a commercial story that makes sense for their shelf space.
The mindset of the retail buyer
A buyer's job is to maximise the profit from a specific amount of shelf space or category budget. When you approach them, you are asking them to take a risk by removing something else to make room for you. Your pitch needs to justify that risk. It should be built on data: current D2C sales volume, customer demographics that match their stores, and proof of brand momentum.
The commercial essentials
| Area | Requirement |
|---|---|
| Trade Pricing | A clear structure that includes RRP, wholesale price, and bulk discounts. |
| Retail Margin | A price point that allows the retailer to hit their required margin (often 40-60%). |
| Supply Chain | Ability to handle larger orders, B2B labelling, and specific delivery windows. |
| Marketing Support | Commitment to co-marketing, POS materials, or digital assets for their use. |
| Case for Space | Evidence of why your product is a better bet than the competition. |
The 'Trade Enquiries Welcome' mistake
Many D2C brands put a link on their site saying 'Trade enquiries welcome' and expect retailers to come knocking. This is rarely a strategy. Retailers are pitched constantly. If your brand doesn't have an outbound strategy, a specific wholesale pack, and a clear understanding of the retailer's category, that link is likely a waste of digital space.
Steps to prepare
Before you start cold-calling buyers, build your 'B2B foundation'. This means professional photography that suits retail catalogues, a trade price list that is separate from your consumer shop, and a trial of B2B fulfilment to see where your weak points are. Test your proposition with small, independent retailers first to refine your story before going for the majors.
Could your business support another route to revenue?
Evans Channel Creation identifies, validates and builds additional revenue channels from capabilities a business already has — B2B to D2C, D2C to B2B, product to service, recurring revenue or partners — and says so plainly when a channel should not be built. Programme from £1,995 + VAT per month over six months.
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