Precision Market Insights
Today’s Content (45 mins) 1. Precision Background 2. Market Data 3. Historical Trends 4. Insights & Opportunities 5. Panel Discussion Break Questions: Please hold, to be covered during panel discussion
Precision Background Private quantitative marketing agency Big Data sales and marketing tools focused on growth, margin improvement, and operations efficiency Partner Mix: 50% Mfts. & 50% Distributors/Wholesalers Long-term partnerships built on trust and confidentiality Vision: Transform data into understanding, action & payback Sample partners
Precision Background 17 Years of Product & Services Development Statistics, insights, and experience B2B/Professional & Sales and Marketing focus 3rd Party Firewall & Partnerships Data aggregation, compilation, & validation All products – sku and customer attributes Implementation Measured by $ payback to partners Revenue growth, profit improvement, operations efficiencies
Market Data
Market Data % wholesale by product category % wholesale by distributor type (channel) % wholesale for A&B and C&D items Historical trends Forecast: Insights to Consider
Scope B2B/Professional Sales in the US Distributor COGS (Manufacturer $’s)
Scope Product Categories: Cleaners & degreasers Floor care chemicals Disinfectants Laundry Folded paper towels Cleaning tools/accessories Odor control Mops Carts Brooms & brushes Floor pads Mopping equipment Ice melt Foodservice (FS) disposables Power equipment Foodservice packaging Gloves Bags & sacks Wipers Paper bath tissue Can liners Rolled paper towels Warewash chemicals Hand soaps & sanitizers Paper napkins PPE
Market Size $40.4 Billion B2B, 12 months ending 5/2018, Manufacturer $’s mm, USA
Market Size by Category $40.4 Billion
% Wholesale $40.4 Billion $5.3 B Wholesale 13% 87% $35.1 B
% Wholesale by Category Avg = 13% More Categories on next slide
% Wholesale by Category 30% 31% Avg = 13% B2B, 12 months ending 5/2018, Manufacturer $’s mm, USA
A/B & C/D: % Wholesale Avg = 13% $32.4B $8.1B Market Size ($B)
A/B & C/D Items C/D: $1.7B $5.3 B A/B: $3.6B via Wholesale Total Market $40.4 B
Market by Distributor Type $40.4 Billion
% Wholesale by Distributor Type Avg = 13% Wholesale Market Size ($mm) $2,000 910 450 113 110
Historical Trends Growth (2013-2018)
Insights Collaboration and Partnership with Suppliers Drives Growth Growth in wholesale all comes down to level of collaboration with suppliers Level of trust, partnership, and data sharing Individual supplier strategies change frequently Respect Roles Wholesale role = small customers & brand loyalty Supplier role = pricing, order minimums, and customer size cut-off discipline
Insights Wholesaler Success Factors Service quality Innovation (for example: eComm platform and fulfillment role) Ability to improve customer retention and penetration Wholesale does not justify itself on cost-savings alone Effectively communicate benefits of wholesale to distributors and suppliers
Insights Other Role of eCommerce Mergers & Acquisitions Supplier Mindset Leadership with consumer backgrounds Finance can perceive wholesale as a drain on margin Knowledge and support of wholesale requires experience
Opportunities For Distributors For Suppliers Lower cost-to-serve Lower inventory Higher order fulfillment Higher revenue Increased customer retention For Suppliers Small customer retention Increased sales via more product availability Reduced cost-to-serve for small locations
Opportunities $2B Opportunity Market % Wholesale Influencing Factors: Wholesale role = small customers & brand loyalty Supplier role = pricing, order minimums, and customer size cut-off discipline
Thank you!