Posted: 28th January 2016 | Back to news feed
The American retail practice of adhering to a minimum advertised price (MAP) and its chances of coming to the UK met with a mixed response from equestrian industry heavyweights in BETA International’s new Talking Business feature, hosted by ITV newscaster Alastair Stewart.
“I would welcome MAP over here,” said David “Monty” Stuart-Monteith, owner of distributor Shaws Equestrian, during the trade fair at the NEC, Birmingham, on Sunday 24 January. “It really supports retailers and ensures good margins and profitability, but it has to have flexibility.”
John Nunn, president of American equestrian wholesaler Nunn Finer, revealed that MAP did not apply to all products in the US – and discounts were sometimes allowed at specific rates and times. “Trying to keep track is a job in itself,” he said. “So, if you’re going to have MAP pricing, be very diligent about what it should be because I think it’s broken in the United States.”
Sara Blackshaw, equine category manager of Countrywide Farmers, and David Haythornthwaite, chairman of the Tangerine Group, doubted whether it would be legal to introduce MAP here.
Phil Duff, a business consultant and non-executive director of equestrian companies, said: “The law is not definitive. It does need to be resolved.” But he believed price was not the determining factor. “If you’re carrying strong brands, you can be bold about them,” he advised retailers. “The bigger demand is for the level of service and what the product can do for you and to improve your riding.”
Black Friday, an American phenomenon that has already arrived in Britain, was another bone of contention for the Talking Business panellists. “Anybody selling premium products will have at the end of the season a period of time where they need to de-stock, cash in and have cash for the following season,” said Monty. “Black Friday seems to me a wonderful opportunity to do that.”
Journalist and brand developer Lucy Higginson took a different view. “Rather sadly for the equestrian world, where September/October is a key shopping time, with winter coming and all the kit you need to make sure you’re ready, its timing is pretty lousy,” she said. “I also dislike the connotations of it.”
Phil believed independent equestrian retailers should not go head-to-head with high-street stores. “There are other ways of getting rid of your old stock,” he explained. “Have your own sales, be more innovative, but don’t try to compete with John Lewis.”
Further divisions on the panel were revealed when Alastair asked what the effects of a possible withdrawal from the EU might be. “We sell to 42 countries,” said David Haythornthwaite. “I’m a passionate believer that, if you’ve got a great product, people will buy it.”
Phil agreed, adding: “As long as we as a country continue to make the finest equestrian products and produce the best innovation, it will make absolutely no difference.”
Monty saw the positives in staying in the EU. “We have a shortage of grooms over here,” he said. “Free movement of labour in the equestrian trade across Europe is great. Secondly, anything that brings nations together like the EU is a good thing.”
Lucy believed more jobs should be filled by those in Britain who are qualified to do them. “It really saddens me that we have this massive equestrian education industry producing gazillions of graduates,” she explained. “It’s a shame that, while we’re educating and training people, we can’t dovetail that more with the actual employment pattern.”
Wholesalers’ support for independent equestrian retailers was another hot topic for panellists. “The best thing a supplier can do to allow the independent trade to flourish is to provide them with jolly good products where they can make high margins,” said Monty. “You’ve got to be looking for suppliers who are giving 2.2, 2.4 times mark-up so that shops can make good margins.”
Sara said: “The nature of the marketplace has changed. If a new product is being launched, it’s not just about having it in stores – it’s about how it goes viral on social media. It is important that the supplier works with the store to make sure all the timing is right on that.”
Customers’ relationships with retailers were all-important, according to Lucy. “My local retailer feels like a bit of a club,” she said. “There’s a coffee machine, information about what’s happening, people I see regularly and expertise I tap into. As a supplier, you have to talk to that community.”
Phil argued that there were “too many brands, too many suppliers and, I’m sorry to say, too many retailers”, adding: “Over time, things will balance out, but responsibility at every level and prudent thinking is the only route to survival.”
Buying power and online retailing were highlighted as major issues by David. “The biggest single threat is two-fold,” he told visiting retailers. “One is the internet and the second is what we call the corporates – Mole Valley, Countrywide or Wynnstay. These are organisations that have great buying power.
“The question is, what can retailers do? The manufacturer can, first, not sell to the internet, which is a bit difficult, but also make sure it’s a level playing field. Corporates use their buying power, as we would if we were in charge, to beat up people like me to get a better price so they can beat up people like you.
“Our responsibility is to make sure we don’t give a better price to the corporates, allowing the average independent to compete.”
Responding as a representative of the corporates, Sara said: “I would say to an independent retailer, make yourself specialist and be exceedingly good and the best at what you do.”
Declaring the new Talking Business feature to be a resounding success, BETA International organiser Claire Thomas said: “It proved to be a brilliant talk shop and source of debate on some of the big issues affecting our industry. The panellists were not afraid to be forthright and air their views. Talking Business will certainly be a feature at the trade fair next year.”
BETA International is the world’s leading equestrian, country clothing, outdoor and pet product trade exhibition. The 2017 show will take place at the NEC, Birmingham, from 22 to 24 January. For information about exhibiting, contact James Palmer, telephone +44 (0)1937 582111 or email jamesp@beta-int.com.
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