Marketing your products and services
Market entry
In order to successfully enter the UK seafood market, you will need a presence in the UK. Category management is common, and buyers reduce sales costs by limiting the number of suppliers. Supermarkets don’t buy direct from producers, but have one or two specialist suppliers for each product category. These suppliers, or multipliers, import specific products from around the world in order to provide seamless delivery to the retailer. Some retailers are closely involved in vetting new products and overseas suppliers, while others leave that responsibility to the multiplier wholesaler.
You will need to sell to a UK-based distributor who can access the right customer group – supermarkets, catering or processing. It is important to find the right partner. This company should:
- Be a preferred supplier to the supermarkets or catering trade
- Be experienced in handling your product types
- Be experienced in working with Southern Hemisphere suppliers
- Have the equipment and skill needed to grade, pack or store your products as necessary
It is worth talking to several different companies before making a decision. You may well work with more than one company if you have a wide range of products. Do some research in the UK, and visit the leading retailers before approaching potential importers. This will give you a better idea of the products already on offer, the retail prices and what the retailers are looking for.
Some very good companies are relatively small as they exclusively service a single sector, such as top end restaurants in London. In the seafood sector there are a wide range of importers and sales agents and it is worth meeting with a number of organisations to get a good understanding of the market dynamics and to help you select a partner.
Innovation, rather than increased consumption has driven growth in the UK seafood sector. The quality offering has changed so that consumers expect the best all the time - it is hard to market on quality alone.
The UK seafood retail market is not as sophisticated as Australia, as British people haven’t traditionally been big fish consumers, therefore you may need to provide smaller sizes or fillets to appeal to consumers. Retail buyers may also need educating in how to handle and prepare unusual products. Supplying restaurants via a wholesaler can be easier.
Carefully think about your target consumer before presenting your products to a UK buyer. Don’t assume that your British consumer will have the same characteristics or habits as your Australian consumers.
Many importers and retailers will need to be convinced of your capabilities. Be clear on:
- Supply seasons
- Exportable volume
- Export costs – transport and duty
- Shipping times
- The Latin and marketing names of your products – common names are often different in the UK
- The margins expected by your distributor and the customer
British companies prefer to have brochures and product samples, rather than relying on websites for information. Use of the Internet is widespread, but a brochure or sample in the buyer’s hand tends to make a faster impact. Brochures don’t need to be expensive, but they should:
- Accurately project the values of your company
- Include technical information
- Give full details of all products in the range
- Mention the benefits of the product to the retailer – perhaps include a case study of an Australian retailer
Provide pricing information separately. It should be in UK pounds where possible, or at least in Australian dollars with reference to a current exchange rate. UK companies expect to build a relationship with their suppliers, so treat the UK as a long-term strategic market.
The seafood industry hasn’t taken advantage of the Internet in the same way as other food sectors, such as beverages or fruit. Online shopping for home delivery is an increasingly popular service from UK supermarkets. However, the supermarkets do not yet use the Internet themselves for buying stock. If you do offer your products for sale to the UK and Europe over the Internet, you will still need to comply with British and European laws.
Distribution channels
Distribution of seafood in the UK is split by volume: retail – 40 per cent; processing – 38 per cent; and food service – 22 per cent .
Retail
Supermarkets are the main distribution channel for seafood, as with most other food products. However, the larger chains may not offer the best prospects for high-value Australian seafood, and it could be worth investigating sales to independent retailers or up-market stores.
Very few UK retailers will buy direct from an overseas supplier, unless you have a UK presence. Very few restaurant, pub chain or catering companies will buy direct from Australia. Most will buy through a wholesaler. Some companies are so large that they have in-house buyers who can cope with the complexity of direct import, but they will expect to have the same discounts as a traditional wholesaler.
Food service
Like the retail sector, food service is also experiencing consolidation, with some very big companies dominating. Despite this, small companies continue to hold niches, and it is possible to find both small and large customers. Some larger companies active in food service include:
Also like retail, few food service outlets will buy direct. There are a multitude of specialist wholesalers working in this sector. Some are very specialist, providing premium fish to London restaurants for instance, others bulk service.
Wholesale markets
The wholesale markets, such as Billingsgate in London are less powerful in seafood distribution than their counterparts in Australia. However, there are many small and specialist companies located in the markets which supply restaurants and independent retailers. These companies will often buy in much smaller quantities and make spot purchases.
Because fish sales do not have to go through the wholesale markets, there are a number of wholesalers outside of the market structure. These vary in size from huge companies with outlets across the country, to specialist suppliers with a defined geographic customer base. One of these companies is most likely to make the best partner for Australian seafood exporters.
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