Timing is Everything

Every retailer, wholesaler and distributor consist of buyers and merchandisers, who continually work a circle of processes and activities throughout the year in order to service demand and increase the profitability. It’s a relentless, demanding and results driven job riddled with constant multi-tasking.

 

Understanding the intricacies of the buying-selling cycle is crucial for anyone looking to introduce a product to market. This cycle involves defined periods when buyers evaluate, plan, and procure products within specific categories. Knowing when to approach these organisations can make or break your chances of success.

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The Retail Calendar and Its Seasons

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The retail year is distinct from the traditional calendar year. It begins in February and ends in January of the following year, divided into two major six-month seasons:

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Spring / Summer : February - July

Autumn / Winter : August - January

 

Each season is further split into quarters

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Spring / Summer : Q1: February - April. Q2: May - July

Autumn / Winter : Q3: August - October. Q4: November - January

 

The retail calendar operates on a 4-5-4 structure, where months are organised into 4-week, 5-week, and 4-week cycles. This ensures consistency when comparing sales, promotions, and holidays year over year, despite variations in standard calendar months.

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Procurement vs. Retail Year

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While the retail year dictates when products hit the market, the procurement year is what you should focus on when launching a new product. Buyers and merchandisers begin planning and allocating budgets for future seasons many months in advance. During this time, they :

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• Plan : Define merchandise strategies.

• Evaluate : Analyse trends and product performance.

• Budget : Allocate funds to specific product categories.

• Select : Choose new products for upcoming seasons.

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For example, the toys and games industry heavily relies on the Christmas shopping season in the Autumn / Winter period. However, the procurement process begins much earlier, often in the preceding January or February, following major industry trade shows.

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Example... Toy and Game Procurement Cycle

 

1. Trade Shows

 

• New York and Shanghai Toy Fairs : September/October (the year prior).

• London Toy Fair: Late January.

• Nuremberg Toy Fair: Early February.

 

2. Product Presentations

 

After attending trade shows, buyers schedule formal presentations with product owners.

 

3. Selection and Budget Allocation

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• Products are evaluated alongside others in February and March.

• Successful products enter formal negotiations and receive orders by July or August.

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4. Deliveries into Store

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Order volumes land in warehouses October - November ensuring they are ready for the Christmas season.

 

Summary

 

Before implementing your marketing strategy, its important to invest in understanding your target market’s procurement cycle. Identify when decision-makers are open to considering new products and plan your approach accordingly.

 

The earlier you engage within the cycle, the better your chances of securing a slice of the budget and ensuring your product's success.