B2B Breakthrough Podcast – Episode Summary
Title: Top 5 Tips to Make it in Retail: Prep for Success with Yohan Jacob of RetailBound
Release Date: February 5, 2025
Host: Sierra Christo
Guest: Johan Jacob, Founder and President of RetailBound
Introduction to RetailBound
In this episode of the B2B Breakthrough Podcast, host Sierra Christo welcomes Johan Jacob, the founder and president of RetailBound. With over 30 years of experience in the retail sector and a history of mentoring more than 4,000 clients globally, Johan offers a wealth of knowledge on navigating the retail landscape. Johan explains that RetailBound, established in 2008, is a full-service retail solutions agency dedicated to helping young, internet-based product brands successfully launch, sustain, and grow their presence in retail environments.
Building Relationships with Retail Buyers
At [00:59], Sierra introduces the core topic by highlighting Johan's expertise. Johan draws an analogy between maintaining a healthy marriage and fostering strong relationships with retail buyers. At [02:59], he emphasizes:
Johan Jacob: "It's like a marriage after the honeymoon phase... you gotta find ways to grow the business."
Johan stresses the importance of thorough preparation before initiating conversations with retail buyers. He likens approaching a buyer to a job interview, where only the well-prepared brands make a lasting impression and secure valuable shelf space.
Product Differentiation
Moving into [04:32], Johan discusses the critical role of product differentiation in standing out in a saturated market. He explains:
Johan Jacob: "If you're the same product like the other 20 products on your shelf, why should I pick you?"
Using the example of a client who developed an indoor air purifier that doubles as a planter and a nightstand, Johan illustrates how unique product features can capture a buyer's attention and differentiate a brand from competitors. This differentiation not only makes the product more appealing to buyers but also easier to market to consumers.
Understanding Buyer Expectations
At [08:37], the conversation shifts to understanding what retail buyers look for when selecting products. Johan outlines three main criteria buyers evaluate:
- Sales Growth: Will the product drive top-line sales?
- Profitability: Does the product contribute positively to the retailer’s profits?
- Inventory Turnover: How quickly will the product sell and require replenishment?
Johan explains that buyers aim to ensure that the products they stock will be profitable and have a high turnover rate, minimizing the risk of unsold inventory.
Negotiation Tactics and Contracting
At [10:14], Johan delves into the complexities of negotiating with retail buyers. He points out that many entrepreneurs mistakenly believe they can negotiate on par with seasoned buyers. He shares an example of a client facing unfavorable terms with Chewy.com, highlighting the challenges small brands face without expert guidance. Johan advises:
Johan Jacob: "A lot of entrepreneurs I work with think they're match negotiators... but it's very tough to understand what tricks or what various buyers use to negotiate small brands."
He underscores the importance of having experienced partners like RetailBound to navigate negotiations, ensuring that contracts are fair and beneficial for both parties.
Importance of Supply Chain and Logistics
At [14:01], Johan emphasizes the necessity of a robust supply chain, especially for products manufactured overseas. He states:
Johan Jacob: "Having a partner like Alibaba or a partner that can ship goods on a timely matter is very important..."
Johan explains the significance of choosing the right third-party logistics (3PL) providers to ensure timely and accurate delivery of products to retailers. He outlines different types of 3PL services, including those tailored for B2B transactions and more comprehensive “3+” services that combine fulfillment, logistics, and additional functionalities like bundling and electronic data interchange (EDI).
Retail-Ready Packaging Strategy
In the segment starting at [23:32], Johan discusses the dual importance of retail packaging—both for shipping to retailers and for in-store presentation. He offers best practices such as:
- Optimizing Case Packs: Ensuring case pack sizes match retailer requirements to reduce costs and improve accuracy.
- Eye-Catching Retail Boxes: Designing retail boxes with compelling visuals and minimal copy to attract consumers' attention quickly.
- QR Codes: Adding QR codes to packaging to provide additional product information interactively, enhancing customer engagement.
Handling Rejection and Persistence
At [26:42], Johan addresses the inevitable rejections brands will face when pitching to retailers. He offers reassurance and strategies for overcoming setbacks:
Johan Jacob: "Generally speaking, you'll get nine no's and one yes."
Johan advises brands to remain persistent and not take rejections personally. He shares a success story of a client who overcame initial setbacks to eventually secure placement with Apple, illustrating that perseverance and continual improvement can lead to eventual success.
Upcoming Initiatives at RetailBound
In the closing segment at [28:44], Johan announces RetailBound's latest initiative—Retail Accelerator. This new service is an intensive eight-week boot camp designed to help startups prepare for retail through comprehensive training in go-to-market strategies, pricing, logistics, packaging, and marketing. The program culminates in introducing participants to potential distributors, providing a structured pathway to retail success.
Notable Quotes:
- [00:01] Johan Jacob: "It's like a marriage after the honeymoon phase... you gotta find ways to grow the business."
- [02:01] Johan Jacob: "Before you pick up the phone, before you send an email, before you exhibit a trade show, it's really important to have those things necessary in place..."
- [04:43] Johan Jacob: "If you're the same product like the other 20 products on your shelf, why should I pick you?"
- [10:14] Johan Jacob: "A lot of entrepreneurs I work with think they're match negotiators... but it's very tough to understand what tricks or what various buyers use to negotiate small brands."
- [14:01] Johan Jacob: "Having a partner like Alibaba or a partner that can ship goods on a timely matter is very important..."
- [26:42] Johan Jacob: "Generally speaking, you'll get nine no's and one yes."
- [28:44] Johan Jacob: "We launched a new service called Retail Accelerator... an eight-week intensive boot camp helping brands get ready for retail like go market strategy, pricing, logistics, packaging, marketing."
Conclusion
In this insightful episode, Johan Jacob of RetailBound provides a comprehensive guide for small businesses aiming to break into the retail market. From the importance of thorough preparation and product differentiation to understanding buyer expectations, mastering negotiations, ensuring a reliable supply chain, and developing effective retail packaging strategies, Johan covers all essential aspects needed for retail success. Additionally, he offers valuable advice on handling rejection and introduces RetailBound's new Retail Accelerator program, presenting a clear pathway for brands to achieve sustained growth in the competitive retail landscape.
Listeners are equipped with actionable strategies and expert insights, making this episode a must-listen for entrepreneurs seeking to secure and thrive in retail partnerships.
Where to Find More:
For more information about RetailBound and its services, visit retailbound.com. Connect with Johan Jacob on LinkedIn to stay updated on upcoming programs and opportunities.