We are preparing for the August rush, in the hope that the pre-holiday demand will revive the vitality that we have seen only occasionally and only for certain items, after weeks of uncertain sales due to various factors such as the unpredictable weather, a slow start to the tourist season and a constant (and worrisome) general decline in purchases.
On the cusp of the summer holidays, Raffaele Lasciarrea, commercial director of ILFRES and the new ILFRES España, which operates in several Italian and European distribution channels, outlines this summer's trend and the link between the world of production and the world of retail, both traditional and large-scale.
"At this time of year, it is essential to have products available that can meet the sudden demands of the market. There are numerous promotions in the large retail sector that, as in the case of the Christmas holidays, offer extremely advantageous prices and seemingly unlimited availability. We would run the risk of oversimplifying a phenomenon with hundreds of facets if we were to approach such a complex and multifaceted issue from a single point of view. Price reductions and product availability are the gold standard for any retailer in terms of promotions, and both are under pressure during the holidays," says the Apulian manager.
And he continues: "If we try to force the argument and analyse the phenomenon according to categories, there are, on the one hand, the manufacturers (or importers) and, on the other hand, the distributors of the traditional trade and the large-scale retail trade. It goes without saying that planning supplies involves making commitments and taking small risks, many of which are less burdensome than running out of stock or having quality control rejections due to non-compliant goods and related non-sales scenarios at the point of sale."
Weekly meeting to discuss prices.
Lasciarrea points out that this year there is a big difference in the mindset of operators. They are looking at price, but also at the overall quality of the products, their shelf life and the preference for short supply chains.
"Careful planning allows us to avoid unnecessary and damaging storage and to have a continuous rotation of fresh products from producer to commercial distribution. Promotions are also carried out under our own brands and always with high quality products. It is perhaps for this reason that when we walk around the counters of our customers' outlets, in the majority of cases we find a good product on display."
JUICÍ oranges.
"Let's take the example of the iceberg, a classic coquette item in the August catalogue. After a summer campaign that was rather dry in terms of prices and sales for Dutch, German and Spanish producers, imagine with what attitude you would approach them to ask for further discounts now that the market is finally starting to pick up."
The key to a lasting, functional and win-win relationship remains customer-supplier planning. "You don't need to read a treatise on business ethics to understand that the world of production is already unable to sustain the aggressive commercial policies of distributors (large retailers and others) focused solely on maximising profit per transaction. We believe in human relations. Discounts and marketing investments are therefore welcome, even during Ferragosto, as long as they are solid and not occasional."
In the current context of declining consumption, it is therefore appropriate for the production and distribution sectors to make an effort to organise their respective budgets and identify strategic relationships that are sometimes not even considered. It is necessary to propose promotions that are functional to the current situation, not just because they were done last year in the same week," says Lasciarrea. Where there is will and trust, we reciprocate with tangible and real added value."
For more information:
ILFRES Srl
Via Copenhagen 7
76011 - Bisceglie (BT) - Italy
Tel.: +39 080 3925085
Email: [email protected]
lfres.com
ILFRES cultivar San Javier SL.
Avenida Pinatar 4
San Javier 30730 (Murcia)
Tel.: +34 603 55 66 78
Email: [email protected]