A look back: what were dealers talking about in 2019, and why is this more relevant than ever post-COVID?

Back at Dealer Support Live in November 2019, Simon Drakeford, our CEO and BOSS chairman, hosted a dealer panel to discuss emerging growth strategies and dealer visions for 2020. The dealer panel and audience discussed the direction of the industry, as well as challenges they’d faced so far in the year and their plans for growth in the future. No one had any idea of the scope of change looming in the coming months, or how our lives, businesses and industry would be rocked and reshaped by the global pandemic yet to hit our headlines.

But looking back, we can see how even with the interruption of a global health crisis, dealer predictions for 2020 and beyond weren’t far off the mark. In this article, we revisit some of the key dealer predictions discussed at the event, and how they’re more relevant than ever for the post-COVID world.

Amazon’s dominance is an ever-growing reality, but so is the power of the independent dealer

What dealers said in 2019: “While the size and brand strength of larger players like Amazon may appear beneficial, this notoriety can function as a double-edged sword. Just as customers are aware of what they can do, they’re also becoming increasingly aware of what they can’t. These larger players may be able to offer lower prices for example, but often customer support and aftercare are non-existent. This leaves an opening for local dealers to capitalise on these overlooked aspects, build close relationships with customers and take the time to support them, ultimately strengthening their businesses.”

Looking at this from a 2021 lens, we know how COVID has only strengthened Amazon’s success in the market, with UK sales increasing by 51% in 2020. But this doesn’t mean that dealers don’t have the capability to thrive in the age of Amazon. If dealers can make waves where Amazon falls short, combining technology with local brand image and real customer relationships, then this will help to set dealers apart.

In 2020, 46% of UK customers bought a product online which they would previously have bought instore

What dealers said in 2019: “The relationship between sales person, gross margin and average order size isn’t necessarily as relevant as it used to be. More and more dealers are starting to appreciate the role online ordering plays when it comes to improving gross margin and increasing the number and type of products customers place in their baskets.”

The pandemic has seen an exponential shift to online buying. A recent report from Retail Economics and NatWest found that since March 2020, 46% of UK customers have bought a product online which they’d previously bought instore, and data from the Office of National Statistics found that in January 2021 alone, online accounted for a record 35.2% of overall sales. We’ve witnessed the reality of this shift too, with the recent absorption of traditional brick and mortar retailers – such as Debenhams – into the online buying space. If dealers knew the importance of ecommerce in their sales mix back in 2019, then by now it’s an overwhelming force which can either swallow them up or be used to their advantage like never before.

Being everything to somebody, rather than something to everybody, is still important

What dealers said in 2019: “Personal and proactive selling, good customer service and effective relationship-building are areas in which local dealerships will always excel in. Evergreen’s Julie Alston reminded us of the importance of sticking to this philosophy. Having recently clocked up 33 years in the office supplies industry, she explained how although it’s important to delve for new strategies when it comes to acquisition, retention and growth, it’s just as important to stick to what you know works. In this case, that’s continuing to sell proactively and effectively to customers while providing the best possible service. Jeremy Quick from Jubilee Office Supplies also made a good point explaining how in his experience, the better the relationship with a customer, the less easily they’re swayed when competitors come knocking.”

Julie wasn’t wrong, and this proactive work to build relationships and cultivate trust, loyalty and longevity is as vital as ever for the success of dealers today. By taking time to meet your customers’ needs and offer quality customer service, you’ll always be providing something that the faceless online giants don’t. In a time which has seen the trend for buying local soar, dealers can leverage the strength of their customer loyalty when competing with the likes of Amazon. But just having these relationships isn’t enough alone and harnessing the tools and technology to cultivate your customer base will best position you for success in the post-pandemic world.

Dealers need to be able to offer product categories which were never thought of before

What dealers said in 2019: “Being able to source and provide true Specials – what we call “pink washing machines” – has the potential to revolutionise the sales strategies of many dealerships, enabling an endless aisle solution and creating gaps for new business in your overall offering.”

When we were developing our now award-winning specials sourcing technology back in 2018, to allow our dealer partners source any products they want from any supplier they want to work with, we had no idea of the value it would provide in a global pandemic. Over the last year, we’ve seen a PPE gold rush and demand for home working products soar, and this in turn uncovered a need for dealers to be able to easily and flexibly expand product range to meet new customer needs. To be successful in doing this, ultimately dealers need to ensure they have the technology, relationships and tools available at their fingertips.

Reflecting on the past to forge strategies for the future

In the midst of extraordinary times, it can be valuable to step back and reflect, using past experience as an anchor, a point of reference to compare with the climate now. While 2019 may feel like a lifetime ago, it’s interesting to see how the challenges and opportunities dealers were talking about then are virtually the same as those on dealers’ plates now. The only real difference now is that the significance of the areas which were talking points before, such as the rise of Amazon, importance of ecommerce and need for flexibility of product categories, have significantly progressed due to the ways in which COVID has affected our lives. Now, these are even stronger catalysts for dealers to adapt and evolve to meet the requirements of the post COVID customer. Some dealers may see this as the death of the old, but for many this signifies a new dawn.

If you’d like to talk more about how to strengthen your business for the post-COVID climate, or you have your own thoughts on what we’ve mentioned in this article, get in touch with Chris Armstrong on 07789 004 158 or email chris.armstrong@officepower.net.