Page 149 - Demo

They appreciate buying products sold before delivery, which means thatthese distributors appreciate paying the invoice after 30 days (European lawfor the delay of payment of a bill). They will sell all the products to theirexisting relationships as retailers. They will be very efficient in distributing theproduct across different European regions. The negotiation can be long-term(i.e. one year), or adjusted monthly. If the demand for an innovative product isnot immediately obvious to them, they will not take risks to buy a newsolution. An exception may be if the product is offered by a well-known brandand supported by a strong market study on volumes and margins. In the firststep of the introduction to the market, there are very few opportunities to dealwith them.b) Large retailers (hypermarkets, supermarkets)These entities represent another high-volume sales channel. They have abroad customer base, giving the product high visibility and potentially highsales volume thanks to the shops and their showcases, catalogues, and pricepolicies to be attractive to customers. Moreover, their ability to buy in largerquantities offers economies of scale and they will look after rebates,reductions, and free products regarding the quantities or for a level ofturnover. They appreciate a sales forecast that the provider will explain andwill manage with them. The aim from all of them is zero stock of any productbefore the deadline of consumption of the product or the date of the paymentof the invoice. Their strength is to present a large range of products to clientsand to attract a huge number of clients in the sales area. The introduction of anew innovative solution can be negotiated in a few shops only to test it,combined with a specific sales universe, such as sustainability products orproducts from European countries.c) Small and medium-sized retailersThey may not contribute the largest volume in sales compared to the previousgroups, but they can offer a more targeted and localised approach. Often,these retailers cater to a specific customer base that values frugal innovationsand could be interested in innovative and local solutions. The customers ofthese retailers come for the quality of the products, the expertise of the salesperson, or the proximity of this shop to another one (lower prices regardingexpensive travel and time savings). Some of them are independent in a hugenetwork of shops. Each shop manager will decide on their purchases andthey often answer to the local demand of their customers. So the range ofproducts can be selected with regard to the customers in the area. The priceof these new products do not change a lot, and they primarily appreciate thenovelty. Some specialty stores focus on a specific product category. Whilethey might contribute the least in terms of sales volume, they attract a nicheaudience that might be more inclined to purchase frugally innovated1493.3 Approaches to European Commercialization Practices