Engaging a health and beauty distributor in selling your products and brand can be a profitable and cost-effective way to promote and sell your health or beauty brand. With their distribution channels already established, these agents can quickly expose your brand to new customers and expand your existing markets, whilst benefiting from administrative and logistics cost savings.
Today there are vast opportunities for savvy health and beauty wholesalers to increase their brand awareness and to widen their distribution channels. In June 2021 the Australian cosmetic and toiletry industry in Australia was worth $4.3billion, which is expected to grow at a compound annual growth rate (CAGR) of between 2.11 -3.87% in the next 5 years* (*Ibisworld).
If engaging a health and beauty distributor will help to promote your brand and service your customers, finding the right distributor will largely depend on your plans for brand direction and your available resources.
Firstly, you need to decide:
The type of distributor you need
- A ‘set and forget’ distributor – where you have little involvement between you and the health and beauty distributor.
- A collaborative partnership – one where you work together, offer feedback, support and interaction between the two parties.
The market representation your brand needs
A brand that is already established in the marketplace may be looking to increase the current distribution. Alternatively, a brand that is new to the market, will require a lot of traction and promotion in terms of marketing and sales support.
The type of distribution you need
Ultimately, you want your health and beauty distributor to be able to reach your new market, one that your business is unable to quickly or you haven’t been able to reach in the past.
- Mass distribution – your distributor will need a larger selling team covering a wider geographic territory.
- Niche or limited distribution – you can use a smaller team of representatives, focusing solely on key or targeted accounts.
The answers to these points will help you narrow down the type of distributor you need, now you are ready to find the one with the best fit for your brand.
Five questions to success with health and beauty distributors in Australia
Most distributors will make sales promises. Drilling down on the detail will help you to establish the breadth of their resources and their relationship within their market.
1. How strong are your head office relationships?
Strong head office relationships with major groups will introduce your brand to the right buyers. This helps get your product faster to market in strategically placed outlets whilst building a solid base for penetration.
2. How many sales representatives do you have on the road?
Do they have enough representatives to cover the territory and provide the distribution you want or need? In the case of niche brands or limited distribution strategy, only a few representatives may be required.
3. What are your representatives calling cycles?
You want to ensure that the larger and more important or lucrative accounts are seen often and that regional accounts are also covered within the call cycles. If the call cycles are too tight, the representatives may not be covering the territory efficiently and to the level of support your brand or products require.
4. What level of administrative support does your office provide my brand and your reps?
Does the health and beauty distributor provide the reporting and information that you need to analyse and measure sales for planning purposes. Accurate, frequent reporting and slick ordering procedures can minimise the time the reps are off the road, making them more efficient in selling your products through the distributor channel.
5. What other brands do you represent?
The list of brands that they represent, establishes whether their other products will compliment your brand or your brand is a natural fit for this distributor. It will also establish if there are any conflict of interests between your brand and others they may be representing.
With these questions, you are now ready to find the right Australian health and beauty distributor for your brand. Talk to the team at Alita Sales. With over 25 years’ experience as distributors of health and beauty products, our expertise and experience as a pharmacy broker will successfully build your brand through exceptional sales results.
Finding the right health and beauty distributor in Australia for your brand is key to your success – make the right choice with these questions to ask.