A Glimpse into Changing Distribution Channels
In the dynamic retail realm, it’s necessary to recognize the profound changes in distribution channels that have unfolded in recent years. Every business, not just our beauty industry, has experienced a significant evolution in how products reach consumers. What used to be commonplace practices have given way to new norms, leaving consumers and retailers alike navigating an altered landscape.
Gone are the days of extended payment terms when vendors generously offered 30 to 90 days net. Today, the paradigm has shifted towards upfront charges even before shipping items. In general, support from distributors has changed. Fewer in-person visits, minimal in-house education, and limited gifts with purchases. I prefer to email in my orders and avoid the weekly visits, but all of my reps used to come by every week regardless, and they’d always bring something for us to try or something extra for the back bar. What was once a tradition of in-house education sessions has now given way to online tutorials.
Another striking transformation for my salon personally is the reshaping of private label divisions among manufacturers. Sadly, two trusted suppliers have closed their private label segments after twenty years of supplying me with my number-one-selling haircare brand and body lotion. The decision to shut down private labels underscores a broader industry trend where manufacturers are recalibrating their strategies, prompting salon owners to adapt swiftly. I shed a tear over the lotion and let it go, but I am currently searching for a new manufacturer to recreate my brand.
Price fluctuations have also experienced a paradigm shift. In the past, annual or bi-annual price adjustments were the norm. Yet, today, we see a trend of quarterly price increases, urging salon owners to readjust their pricing strategies and effectively engage with their customer base.
In summary, reflecting on the good old days has me contemplating tossing in the towel—just kidding! I’m curious if your salon has had the same observations. It’s clear that in the dynamic world of the beauty industry, we’ve got to be nimble, always ready for plan B, and know all our options. After all, the beauty industry is evolving, one distributor shake-up at a time! Keep those brushes ready, and let’s paint a fabulous future together.