The cosmetics and fragrance industry enjoys success with a well-established foundation built over decades. As other well-established businesses struggle through the internet age, cosmetics and fragrances can take advantage of the opportunity to actually thrive. And they are thriving.
Cosmetics and fragrances typically enjoy high margins and low ship-to-weight ratios, making this a great industry for e-commerce and that’s the end of the funnel as companies work to pass customers through social media, right?
Retail fragrance and cosmetic companies are aware of the value of social media and must continue to evolve with the ever-changing platforms to keep ahead of competition.
Social media, research and decision making
Don’t think about research in the same boring way a scientist in a lab might approach the topic. Buyer research in the cosmetics industry (and many others) takes place in the form of simple conversations. The ability of a cosmetics or fragrance company to provide and respond to a channel can have a huge affect on sales.
Feedback forums and social platforms offer customers a place to go if something is not right or if they have a question. While this may not be directly transactional, customers who use responsive forums will feel more secure with their purchase knowing they can ask questions. This can play a critical role in shaping the transactions going forward.
Extending reach with product endorsements
Another age-old and successful strategy for the cosmetics industry involves the product endorsement. Long ago movie stars, singers and other beauties have endorsed makeup and fragrance to boost sales. This strategy continues to work well.
Social media only serves to amplify the product endorsement as now the company can leverage their own media channels in addition to the channels owned and updated by the superstar endorser. The online audience can quickly expand by millions with the addition of the right person.
Those imminently recognizable figures have also helped extend reach through video channels such as YouTube. Those classic television spots still matter, but again, successful companies such as L’Oreal see no reason to stop with traditional commercials when they can keep extending their reach and start a conversation with potential customers while they watch videos.
As annoying as it may be to some, there’s even the potential to gain the endorsement of the “social media celebrity.” Yep, we’re touting the value of the Kardashians and it makes sense. Celebrities with an excess of 16 million followers on their social media channels offer an attractive endorsement. Kendall Jenner and her famous sisters give big companies the chance to simply buy followers (and a lot of them) rather than jumping in and competing in the same crowded space. It could take years for a cosmetics brand to drum up that type of following.
Utilizing Paid Advertising Opportunties
Social media platforms such as Facebook and Twitter offer user-friendly paid advertising opportunities to businesses of all types—but these opportunities are especially effective for the retail world. Fragrance and cosmetics retailers can use paid ads to increase their following on social platforms, drive traffic to their websites, build buzz about a product or sale. These platforms allow you to run ads based on detailed demographic information to ensure the ads are reaching the right audience—and then gives you insight as to how ads are performing to continuously improve campaigns.
STC Logistics specializes in logistics services for retailers such as fragrance and cosmetics companies. To learn more about our retail logistics services, click below!
Cosmetics hold a vital percentage of business in today’s retail environment. Cosmetic displays are just as important as the cosmetics themselves, as they are the ones that attract and influence customers to make a purchase. It is crucial for the process of shipping cosmetic displays to be very well planned out and executed. Logistics providers must ensure that displays are shipped on time and in mint condition.
Partnering with an efficient third party logistics provider can facilitate the process of shipping cosmetic displays to a great extent. However, it is essential that a retail company first researches various available logistic providers and their methods of packaging and shipping before a decision is made. Research is necessary to make a partnership decision based on the 3pl expertise in the industry.
A reliable logistics service provider always places an emphasis on the planning process before shipping cosmetic displays and all other similar delicate products. Therefore, the selected 3pl company that ships their cosmetic displays must follow quality organizational practices before and during the transportation process.
Detailed conversations regarding the organizational practices will a give a retailer better insight of the technologies and regulations adopted by the logistics provider. Retailers should consider the following when choosing a business partner to ship their cosmetic displays:
- Adopted packaging methods and handling instructions
- Adopted track-keeping practices – keeping track of the shipment is of paramount importance for timely deliveries
- Stocking locations
- Delivery notification practices
- Financial benefits of specific partnership
A sufficient retail industry logistic provider must have a well-built organizational pattern for performing effective and efficient shipping for new store openings and marketing/advertising campaigns. A reliable 3pl provider will guarantee smooth flow of activities on the promised schedule with no harm to the products.
Planning a successful shipment of cosmetic displays is more than flawless organization. One of the thumb rules a 3pl provider must always follow is that the shipment is delivered on time. Either for a new store launch or re-launch of an old store, timely delivery of the products is a first demand any reliable logistic company must fulfill. With all the extra time calculated in advance, the shipment must be at required destination on or before the time.
Usually, the materials used for cosmetic displays are glass or plastic appearing like glass. Not only are these products prone to cracks during the process of packing, unpacking, loading and unloading due to jolts, but are also prone to scratches, which tend to drastically deteriorate their aesthetics. Retailers or wholesalers should consider the following points to avoid entrusting the responsibility of shipping cosmetic displays to an amateur company:
- Whether the logistic company will give due care to the products during any kind of jolts, vibrations and shocks during transit.
- Whether the packaging and stocking will be done in a manner to prevent the products from dirt and dust.
- Whether the packaging will be proper to give sufficient cushions (with the help of foam packaging) to the delicate products like cosmetic displays.
For a logistic company to be a reliable service provider, paying due attention to all these concerns, its organizational practices must include different handling instructions for a variety of specific goods, in this case for shipping cosmetic displays.
STC logistics is a renowned name in the field of shipping products, with all means of transportation, including air, ocean, rail and ground. The company has gained trust of the big retail stores for the diligence, punctuality and transparency it has to offer to its clientele. If you are looking for a logistic company that meets all its promises, just make a call at 1-800-547-4324 for more details.
To learn more about our retail procurement logistics solutions, cilck below!
Since logistics service provider environment has become highly competitive over the last few years, offering customers the services they expect while adding value to their organizations, is something that a Third Party Logistics (3PL) provider must do to increase market share. Although it seems easy, changing demands, raised expectations and unforeseeable events can prevent 3PL providers from achieving their goals. Yet, most of these providers successfully manage different tasks, including product launch distributions for new store openings and large scale rollout distributions of procurement fixtures. How do they do it?
Using Technology to Deliver What Customers Expect
Product launch distribution defines a real challenge for all logistics providers. This is simply because product launches and rollout distribution imply fixed delivery dates that cannot be postponed. To help these providers manage such tasks, a series of logistics management software solutions have been developed. However, the real value of these solutions for 3PL providers can only be established by analyzing evaluating software products against logistics best practices, which have the obligation of helping companies in the industry meet customer requirements in addition to meeting the terms of international regulations.
- Avoiding Delays: Since ‘on-the–dot’ delivery is critical for product and procurement rollout distribution, most logistics management software systems provide an end-to-end infrastructure that allows users to plan shipping executions within a single interface. From simple domestic transportation tasks, to complex multimodal moves over different geographies, logistics software gives 3PL providers the ability to schedule, optimize and complete the movement of goods anywhere in the world. Further, it boosts operational efficiency while increasing the profitability of all those involved in the process.
- Gaining Visibility: Logistics software also provides in-depth visibility in supply chains, allowing logistics providers to identify process gaps that may cause supply chain disruptions. In addition, 3PL providers can use a logistics software solution to collect and process relevant, real-time data for advance planning. Cutting-edge transportation and logistics technologies also help users boost their supply chain operations and gain a competitive advantage by successfully meeting product launch distribution dates for new store openings.
- Managing Warehouses: Unlike manual inventory systems, logistics technologies propose flexible, advanced, feature-rich applications that assist logistics providers in managing warehouses and monitoring inventory precisely, even in the most complex distribution and storage schemes. As a result, the entire supply chain can be designed more efficiently, which will turn even the most difficult rollout and distribution tasks into simple endeavors.
- Forecasting Demand: Developing a functional logistics strategy is impossible without forecasting demand. Knowing exactly what is needed, when it is needed is critical for a 3PL provider to succeed in logistics and supply chain industry. Logistics software products include a series of demand forecasting functions, which permit users to anticipate future needs. This is especially useful when dealing with product launches and rollout distribution, which typically requires strategic Distribution Requirements Planning (DRP).
- Cutting Costs: Logistics management software solutions not only deliver appropriate tools for effective product launch distribution and large scale procurement rollouts, but also include features that monitor the performance and profitability of logistics providers along with trends and seasonality within this industry. These features are very important since cutting costs represents one of the most important goals of an organization.
In conclusion, logistics software helps 3PL providers centralize control, cut costs, accomplish timelines, eliminate inefficiencies, increase productivity and streamline shipping processes for successful product rollout distribution.
Having a market-leading transportation and logistics software management solution on its side, STC Logistics specializes in logistics solutions for new store openings, small or large rollout distribution programs, pharmaceuticals, marketing/advertising campaigns, critical product launch introductions and much more. We are able to propose a comprehensive list of technologies and services for new store openings and rollout distribution management for all industries. Unlike other 3PL providers, we take the extra step and quickly provide a pre-scheduled rollout distribution plan to efficiently provide client solutions. Our efficient practices help clients take advantage of reduced costs, increased profits and excellent service.
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Third Party Logistics (3PL) providers offer a wealth of benefits to the retail procurement industry. Given their extensive knowledge of supply chain management, these providers deliver a comprehensive solution for assembly, distribution, packaging and warehousing. When opening a new store, employing a 3PL gives companies reliable competitive advantages through advanced logistics solutions, in turn, amplifying profitability.
There are several reasons why a retail company could benefit from a partnership with a 3PL provider, including:
- Cost savings
- Extensive knowledge
- Resource network
When opening a new store, one of the greatest concerns is capital. However, by utilizing a 3PL provider, companies will save on time and money. A logistics provider will eliminate the need for staffing, technological tracking and upgrades, transportation and warehousing.
Instead, the store will systematically request new inventory by a specific date and the 3PL will deliver. This will eliminate costly mistakes, thus lowering risks and allowing the business to grow. Billing, distribution audits, optimization, paperwork, staffing and training to ensure the store’s products are shipped accordingly are all the responsibility of the logistics provider.
One of the primary reasons a company should work with a 3PL provider to open a new store is their extensive expertise with all aspects of the supply chain. 3PL’s are aware of all logistics best practices and remain up-to-date on the most recent technological developments. Their software can provide advanced reporting, automated inventory management and procedural visibility to ensure the store can track and report upon the movement of goods.
With the ability to scale labor, space and transportation based on inventory requirements, companies that function during seasonal time periods will enjoy minimal strain during this transition. This allows stores to consume more warehouse space and resources during the busy season and less during the off-season.
Moreover, a 3PL provider gives companies the opportunity to expand into different regions without any logistical barriers. Most logistics companies have strategically-located distribution centers to guarantee the quick shipping of goods. This decentralization strategy allows for lower costs and improved delivery times.
With the resources to adjust and improve all aspects of the supply chain, 3PL providers will utilize the quickest and most cost effective method to ensure their client’s needs are met. By implementing the resources to restructure the supply chain at any time, logistics providers can analyze and monitor practices which will eliminate inefficiencies thus streamlining the process. Although the store will only see the fruit of these labors through on-time, accurate deliveries, it is important to know that 3PL providers are working to deliver the best costs while keeping efficiency and optimization in mind.
Finally, with a vast network of resources at their fingertips (which provides a competitive advantage over internal supply chains) 3PL’s utilize a resource network ensuring every step along the supply chain is efficient and cost-effective. For instance, logistics providers can utilize relationships to acquire volume discounts which will lower overhead while maintaining fast service. Stores will benefit from the relationships their 3PL have built through an improvement in the bottom line.
About STC Logistics
Founded in 1992, STC Logistics specializes in retail procurement and new store opening logistics with a pledge to deliver superior and flexible solutions. We maintain a resolute commitment to offer the most valuable and resourceful technological solutions to its clients regardless of destination, size or weight. As a result, our company has become a trusted provider of logistics solutions for many industry partners, especially in the retail procurement industry.
To learn more about how our logistics specialists can help you open your new store, contact us by clicking here or call us at 800-547-4324.
For more information about selecting a Third Party Logistics (3PL) partner, download our free checklist by clicking below!
As the holiday season approaches, gifts and displays have been pouring into retail distribution centers. To be well organized for each upcoming holiday season, retailers must implement smart planning throughout the entire year, usually beginning in August. This will allow retail procurement to find the correct balance for Black Friday and Cyber Monday shopping sprees, as well as the remainder of the holiday season.
The simple steps to the procurement lifecycle that most individuals generally agree upon are as follows.
1. Information gathering
2. Supplier contact
3. Background review
The most important aspect of smart planning in retail procurement is to order the correct quantities of products thus ensuring renewal demands are met. This includes contingency planning for natural disasters and consumer spending habits that can cause logistical disruptions. The goal of smart planning is to capture the greatest number of sales without being overburdened with excess stock.
In recent years, retail procurement has learned to balance merchandise by improving the overall supply chain. This accounts for improvements in the amount of products to purchase/manufacture, where to place them and how to get them to the stores. Two major contributors to these improvements are technology and flexible agreements with shipping lines.
For brick-and-mortar stores, the key to a perfect holiday season is for retail procurement to predict the number of each product the company requires at each retailer. Although there is an arbitrary calculation, the correct answer varies greatly per location. The greatest challenges for retail procurement to calculate the correct quantities include:
- Short timeframe
- No selling activity to indicate buyer behavior
Point-of-Purchase (POP) Displays
In addition to smart planning by retail procurement for products, companies must also create a strategy for POP displays which help drive costs from the supply chain. As a mechanism for advertising, POP displays create value in the retail stores with low labor cost. Therefore, these displays must arrive at the stores concurrent with the products to ensure a timely advertising campaign during the holidays. Therefore, it is critical that upstream logistics is involved in POP display design timelines as assembly and shipping is a major aspect of the process; not just design.
Consumer package goods companies want the POP display to differentiate from the competition through vivid colors and sharp graphics. In many instances, design creates the POP displays to be so complicated to assemble that it adds considerable labor costs, as well as time. In an effort to ship on-time, in some cases, logistics must use expensive transportation methods like air shipping.
Nevertheless, by including logistics and retail procurement in the design and production timeline, POP displays could be scheduled more efficiently to accommodate more cost efficient delivery avenues. By allowing 3PL’s to assist in mapping out the most advantageous transit schedules, improvements will allow for the most intricate displays to still have adequate assembly times.
Shipping POP Displays
Like any other product, there are certain precautions that must be taken when shipping POP displays which should be built into a contingency plan. During transit, shock and vibration can jostle and even damage the display, dirt and dust can collect, corrosion can occur (depending on the material) and exposure to a variety of temperatures can affect the overall appearance or functionality. Therefore, correct testing, proper protection and evaluation of the shipping routes will assist in ensuring safe transportation of the POP displays to their required destinations.
STC Logistics specializes in shipping retail procurement items like POP displays. We pride ourselves on the principal that when we ship your product, it is delivered on-time, 99% of the time. We are a trusted logistics provider for the retail industry and have a successful track record for reliable and flexible logistics solutions. Contact us for all of your holiday shipping needs here or click on the button below!