PBA :: Progress :: Spring2007 :: A Look at Distribution's Future
My View of the Future
Insights from the Distributor Leadership Council Chair
To survive in changing times, you must always plan for the future. I think there are several key areas that a distributor should review annually to successfully plan for their future.
Warehouse. It all starts with how well you ship and provide service to the customer. A distributor's hours must be reviewed all the time to accommodate when our salon customer wants to place or pick up an order.
In most markets, the warehouse team is becoming less educated. Your WMS system must be flexible enough to compensate for any labor shortcomings and also be flexible enough to keep your level of service high. Individual packing information per box will become more important. Eco-friendly packing material should be evaluated annually. How you ship to your stores and how to make the store pack more female-friendly is very important to the store staff and to your salon customers.
Sales Force Technology. I believe your field sales force will gravitate to only servicing the "A" and "B+" salons in the future. The stores, telemarketing and your website will service the next level of customer. How your sales managers monitor and adjust service levels for customers will become critical.
Technology will continue to change how we do business in the future. The monthly gathering of sales staff for the reading of the deal sheets is near an end. Videoconferencing, conference calls, computer training and marketing are far more important training subjects for our sales teams. For Christmas, T3 gave me a video Ipod that will hold 10,000 pictures. I think this is the next great sales tool for DSCs to carry with them to salons. Imagine an iPod filled with images for merchandising ideas, retail merchandisers, salon remodels-the possibilities are endless!
Stores. More and more, stores will solidify a distributor's success. As booth rental grows and DSC's focus on their best accounts, stores fill an incredible gap in the supply chain. Manufacturer-provided posters are over in my opinion, and with the advent of flat screen TVs, there are increasing opportunities to use alternative media as a way to impress and influence consumer shopping patterns. Security cameras are also a must in your stores. They make honest people more honest, but more importantly in today's litigious world, you need the video proof.
Salon Equipment Sales. Equipment should always be the focus of any distributorship because it keeps you in the new salon loop. What an advantage you gain on your competition if you can have the DSC as part of the salon's equipment process and supply all the product needs before the salon even opens its doors!
I would also suggest an a la carte service for equipment. With Internet and foreign-manufactured equipment flooding the market, you must price and promote your service to accommodate everything from Internet sales to designing and assembling your customer's purchase.
Diversion Control. Diversion is a cancer and must be eliminated. Distributors must have salon contracts and secondary coding systems. The Beauty Industry Fund diversion report is online and can use everyone's financial support. I believe it will become an important tool in manufacturer contracts. Visit www.beautyindustryfund.com to learn more.
Salon Support. A distributor is the key resource to assist an independent salon in succeeding and becoming a successful business. Distributors should be suggesting that their salons join the salon/spa section of the Professional Beauty Association (PBA) and use the business tools and educational opportunities that PBA provides for its members.
You will also have to keep pushing salons to adjust their advertising to attract the Generation Y customer. This customer wants to check out things on the Internet. They prefer email and text messaging. I am hearing already about companies offering online advanced education. It is an area to watch closely and embrace.
So how can you plan for your company's future? Utilize the PBA as the association that unites all aspects of the beauty industry! You can compare your numbers with your peers by using the Distributor Benchmark Survey, available online at www.probeauty.org. Call in to one of our monthly member calls and speak with your peers about what is affecting your business. Keep networking with your peers, at industry event like Cosmoprof North America, ISSE, Symposium and membership receptions at the Chicago, New York and Orlando shows.
Bob Peel, Jr.
Peel's Salon Services
