Trade Shows vs Tradesnest

Trade Shows vs Tradesnest

If you are a consumer electronics brand looking to increase your sales and expand in new markets, you may be considering exhibiting at trade shows. Attending trade shows is an effective way to reach out to hundreds of international distributors and retailers in one place in a short period of time. But what’s the difference between trade shows and Tradesnest?

Tradesnest provides a more cost-effective alternative to trade shows for putting you in touch with the right people. Both trade shows and Tradesnest’s platform can help you find distributors and retailers for your product and help your business expand. But each company is different and has different needs. So the question is which one will work best for your business? 

If you are currently looking to expand your business into new markets and get your products on retailers’ shelves, don’t worry, we’ve got you covered.

It can be hard to make a decision, so in this article, we’ll explore the differences between Tradesnest and trade shows. Also, we will highlight some of the most significant benefits they can bring to your business. In the end, you will be able to make a decision on which solution is best suited for your business and can maximise your international success.

What is a Trade Show?

A trade show is an event where companies exhibit together and demonstrate their newest products and/or services to trade show attendants and other business people within their industry.

Trade shows are typically not open to the general public. They are mainly addressed to people from the industry including members of the press, top professionals, and company representatives. 

In this way, both exhibitors and attendees can benefit from them. On the one hand, Trade shows’ attendees have access to the latest innovations, technological developments, and valuable insights. On the other hand, exhibitors can showcase their latest products or services, meet new customers, gain leads, build relationships, and increase their brand awareness.

Check some of the trade shows we have participated in here.

Types of Trade Shows

There are several types of trade shows and that’s why there isn’t one fit for all. Usually, trade shows categories are divided based on industry. The four major categories are:

1. Consumer Electronics Trade Shows
2. Electronic Components Industry Trade Shows
3. Category Specific Trade Shows (i.g. mobile accessories)
4. Industrial Trade Shows

Consumer Electronics Show

One of the biggest retail electronics trade shows is the Consumer Electronics Show (CES) in the US. CES usually takes place in Las Vegas in January every year where tech companies from all over the world present their products and services. For example, at CES you can see cutting-edge technologies in smart devices, video gaming, mobility, self-driving vehicles, mobile accessories and many more.

IFA

IFA Berlin is Europe’s largest consumer electronics trade show in Europe. Every year it is attracting the best distributors and retailers in the Consumer Electronics industry.

Electronic Components Industry Trade Shows

Expo Electrica International

Another big electronic components trade show is the Expo Electrica International in Mexico. It is a great networking occasion where every year more than 37,000 professionals from the Electrical Industry attend and making it a great opportunity in the field of electrical material and equipment.

Category Specific Trade Shows (i.g. mobile accessories)

Mobile World Congress (MWC)

MWC is the world’s largest exhibition for the mobile industry where over 20000 visitors from 150 countries attend each year. 

Industrial Trade Shows 

Hannover Messe

Hannover Messe is an international trade show for industrial transformation with many innovations and unique products.

Key Benefits of Trade Shows

While both trade shows and Tradesnest’s platform can help you to showcase and promote your products, they offer different benefits for your business. Here are four key benefits of attending trade shows:

1. Meet with Potential Customers

Trade shows can give your business a unique opportunity to meet with your potential and current customers face-to-face which allows you to:

• Receive buyers’ feedback directly
• Demonstrate your product and how it works
• Ask important questions to buyers and distributors directly

In short, you get the chance to talk with potential or existing customers during these events. In this way, you can better understand their successes, challenges and issues with your products and services.

2. Build Business Relationships

These types of events are all about networking. At a trade show, you have the opportunity to meet in person with potential clients- which is way more effective compared to cold calls or cold emails. On top of that, trade shows have several social events; such as lunch breaks, presentations, gatherings, etc. This is a great way to meet with people from your industry in a more relaxing setting and potentially exchange contact information.

3. Increase your brand awareness

Attending a trade show can help you promote your brand, which is one of the most important advantages. At a trade show, your company can have a dedicated booth or exhibition area to showcase your products.

This area will serve as a visual representation of your brand, along with your team members.

As a result, trade show attendees will discover and engage with your brand. So it is important to make a good impression that will raise awareness and recognition of your company.

4. Analyse the competition

To understand how to position your product well in the market, it is critical to monitor your competitors, and trade shows are a great place to do so.

You can see what their latest innovations are, how they interact with customers and how they market their brand. So, you can simply go for a walk around the show and observe what other companies do to attract customers. 

For example, you can check their banners, messaging, how they place their products on their booth, and how they interact with potential clients. Try to learn as much as possible from your competitors and focus on the booths that are attracting the most attention- you want to learn from the best. Nevertheless, it is also important to check what less attractive booths are doing. Perhaps, there is a common denominator for those who get a lot of traction and those who don’t. 

Measuring Success at Trade Shows

Most businesses fail to set objectives from trade shows and subsequently, this drastically reduces their return on investment (ROI). As a result, when a business does not apply any form of measurement after these shows, there is no way to understand the extent to which they benefit from it.

In fact, recent studies showed that 76% of exhibitors have no specific objective when attending trade shows and 80% of these businesses do not conduct target-market research prior to a show. Even though it is essential for exhibitors to research the attendees, it seems that most businesses fail to realise the importance of this research.

It can take several months to prepare for a trade show and whether this relates to the number of leads gathered or gaining traction with certain companies, these objectives need to be known a long time in advance. 

The amount of resources required to attend a trade show is significant, in terms of time spent on the preparation of the marketing material, getting your demo ready, training your staff, choosing the right location for your booth at the event, designing the booth itself, etc. Additionally, you should consider that usually large sums have to be invested for travelling, hotels and restaurants and therefore clear targets must be defined. 

The Costs and Risks of International Trade Shows

International trade shows are an incredibly expensive affair, with costs for displays, branding, logistics, flights, transport, hotels, and staffing all adding up quickly. The average cost of attending an international trade show in places like the United States, Germany, China, France, and Dubai is $35,000. 

The most important part of exhibiting comes after the event since businesses will follow up with the leads. Not everybody you will meet there is who they claim to be. Doing a good and thorough check on the potential buyer is a must. If the follow-up and verification of the buyer are not done well, it can cost the brand a significant loss of time or potentially enter into a bad partnership. 

For large corporations, in many cases, the target is simply to make a marketing event as they want to present their latest products, but for smaller companies, the target is usually to find new buyers and generate more sales. Therefore, in many cases, trade shows may not offer enough return on investment, which is why many small and medium size companies opt out of trade shows and look for other alternatives.

How to Succeed in a Trade Show

If you want to increase your chances to succeed in a trade show you must follow some steps. More specifically:

Define your goals

The first and most important step is to set your goals. Both you and your team need to know what you want to succeed by attending such a demanding event. Also, it will be much easier to measure your success in the end. Your goals may include: brand awareness, an increase in sales and revenue, customer base expansion, and new business partners (distributors, retailers, investors, etc.)

Define your budget

Your budget depends on your goals. Besides the cost of the event price, you should consider all the additional costs that are included. For instance, product shipping, marketing activities, flyers, banners, and personnel costs for travelling and accommodation. 

Choose the right team

Another important factor you should take into account and plan in advance is your team. It is important to have the right people in your booth and the right action plan to maximise your success. Try to clearly state each one’s roles and responsibilities for the whole team. 

Marketing Plan

At trade shows the competition is high so you need to stand out from the crowd and be noticed. This is something you can achieve if you have a good marketing plan. In order to create a good marketing plan you need to have the right promotional material. This may include press releases, newsletters, social media, ads, banners and flyers to name a few. 

Trade shows displays – Booth image

Once you have built your marketing plan, you need to think about the image of your booth. So, try to make it attractive. Stand out with a trade show display design that makes the most of every angle. It’s important to show the originality and quality of your company. What you can do is keep a good balance between graphics and text. Also, choose the right ‘uniform’ for the event according to your company’s style. 

Create an unforgettable experience

Try to invite people to visit your booth and engage with them. You need to be friendly and at the same time professional, as well as creative and dynamic to create a memorable experience.

Tradesnest Solution

Tradesnest offers a more cost-effective alternative for partnering with the right buyers.

In fact, Tradesnest originated from the pitfalls of trade shows, where hundreds to thousands of companies travel far away and ship their products across the world to the exhibition. As mentioned previously, the costs of trade shows are huge in time and money and small or medium companies have to make sacrifices to pay the needed amount to cover the expenses.

Disrupting the Trade Show Industry 

Tradesnest’s online platform helps small and medium size companies build business relationships with buyers around the world and reduce or remove the need for trade shows or other commercial fairs where buyers and sellers would traditionally meet. At the same time, Tradesnest is contributing to the reduction of CO2 footprint by digitising the trade show industry while increasing trade in a sustainable manner.

Moreover, trade shows happen only once a year which puts lots of pressure on companies to have products ready on time as otherwise, they might risk losing one year waiting for their next preferred event to meet their ideal buyer.

Environmental Impact 

Image source: Center for Exhibition Industry Research

The negative environmental impact brought by trade shows is also considerable. In a time when every gesture counts, transportation of both people and goods for short events leads to high emissions of CO2 from planes, trains, cars, and trucks. These events also generate a lot of waste. You can simply think of all the flyers and other marketing material being thrown away during and after the shows.

According to the Center for Exhibition Industry Research (CEIR) and the Global Association of the Exhibition Industry (UFI) report “The largest environmental impact comes from greenhouse gas (GHG) emissions from participant transport, venue energy, and general service contractor (GSC) warehouse-to-venue logistics. The total measured 2019 emissions for the B2B trade show industry in the U.S. and Canada are estimated at 6.1 million metric tonnes (MT) of GHG, equivalent to the combined annual footprint of 395,000 people in the U.S. or 314,000 people in Canada.”

Tradesnest is committed to providing a sustainable alternative to the non-environmentally friendly aspects of trade shows, thereby promoting a greener future for the industry. By disrupting this traditional way of doing business and reducing unnecessary emissions, Tradesnest leads the charge in B2B sustainable efforts. All while providing businesses around the world with an innovative platform that functions as a trade show and much more.

Key Benefits of Tradesnest

Tradesnest is an online B2B platform that covers over 80 countries around the world with companies within the consumer electronics industry.  

The platform offers brands and distributors the right tools to connect with each other in a very timely and cost-efficient way. Our team of experts has created an environment where it’s easy to communicate with potential partners and quickly take your business relationship to the next level. 

If you want to grow your business internationally fast and without spending much money, Tradesnest is an effective alternative where you can find distributors and connect with them directly.

Benefits of using the platform

1. Tradesnest screening process allows on the platform only distributors that have established relationships with national retailers and can buy in large volumes.
2. You are in control. You select the distributors based on their profiles and decide if they are a fit.
3. Grow fast in new markets and save time researching and pre-vetting distributors, we do all the work for you. 
4. Post your products for free and be visible to the pre-vetted distributors.
5. Get orders through the platform and get paid easily and securely from 180 countries.
6. Use Tradesnest to validate your product before spending a significant amount of time and money on international trade shows.

So, what’s the bottom line?

Both trade shows and Tradesnest can help grow your business. However, if your main goal is to get new business fast without spending thousands, Tradesnest is the most cost-effective option that will drive revenue and get your product in front of the right distributors. The best part is that you can have access to the platform from anywhere in the world, meaning that you don’t need to travel overseas to find business partners. 

If you are a consumer electronics brand looking to enter new markets, sign up today on tradesnest.com. Registration takes only 3 minutes and once your profile is accepted by our team, your company and product profiles will be visible to our pre-vetted distributors’ network.

What do distributors look for in a product?

What do distributors look for in a product?

Are you wondering what do distributors look for in a product? Bringing a new product to market is all about getting it into the hands of your end consumers. Therefore, it is normal to be focused on all the direct-to-consumer (D2C) strategies. Selling your products on your own website and online marketplaces is a great beginning. Once you have got some following and people loving your product, it is time to invest to grow bigger, ideally in new markets.

Here is the part that becomes challenging; spending money on ads to drive traffic is a common way, but you need to have enough sales to be able to continue that strategy.  Not all brands succeed in making this strategy work or even if it does, are the sales enough? The goal is to grow faster and smarter to prevent copycats get in the market first. Well, then this is the time to really think about getting your products on retail shelves. Why? Because 85% of all sales happen in stores worldwide. Can you really afford to miss out on 85%? Little secret; “Amazon is about 1% of the world’s retail business segment” said Andy Jassy, Amazon CEO in a 2019 interview with PBS’ Frontline.

How do you get your product fast in new markets and on retail shelves?

The following process can be lengthy, but it is the easiest, most cost-efficient solution out there. Start partnering up with distributors and national retailers. I am not speaking about the boutique store around the corner from your home, I am talking about large retailers that have tens or hundreds of stores. One way is trying to reach out to these large retail buyers directly, you can read more about it here. However, if you are an emerging brand it might be easier to go through local distributors who already have regular meetings with these retail buyers. 

How do you stand out to distributors?

First, you need to know what distributors look for in a product and how they would view your product and brand.

What is important to know is that distributors take a significant level of risk when it comes to carrying a new product. Even if your product is innovative and attractive, there are a few inescapable red flags that might be raised by inquiries concerning production, quality, and consumer feedback. Additionally, good distribution partners frequently receive a lot more requests for collaboration from brands than they can handle. Therefore, they must carefully consider each opportunity. Their ultimate goal is that each new brand must be able to increase sales and profitability without competing with their existing brands’ portfolio.

We know that there are a lot of new innovative products that may have a good potential of being the next hot item to fly off the shelves. If you have an innovative product and you are ready to expand into new markets and want to learn what do distributors look for in a product, you can check the list below. We gathered a few elements that are at the top of the distributor’s checklist and can help you understand what distributors are looking for. 

What are distributors looking for in a product?

1. High demand or strong potential for growth

Distributors want to invest in products that have a proven track record of sales or that show strong potential for growth because it increases the chances of the product being successful in their market. When a product has high demand, it means that there is a large customer base that is interested in purchasing the product. Subsequently, this increases the likelihood that the distributor will be able to sell a large quantity of the product. 

Even if your sales are good, distributors always send their team to wholesalers and retail buyers to get their opinion on the product. If they pass on the product it is most likely that the distributor will pass too. Sending samples is not enough, you need to show how your product is unique, that the demand for the product is high and how it really solves a problem for your customers. Convince them before they start reaching out to their buyers.

2. Good profit margin

Your product should have a good margin for a distributor, which will help the distributor make money while also keeping prices competitive for customers. 

A good margin means that the distributor can sell the product at a higher price and still make a profit, which is essential for their business.

In case the margin is too low, the distributor may not be able to make a profit or may have to increase the prices. Subsequently, this can make the product less competitive and less appealing to customers. Additionally, a good margin also provides a buffer for the distributor in case of unexpected expenses or market fluctuations. This factor contributes to ensuring the long-term financial stability of the distributor’s business.

3. Good fit for existing product lines and customer base 

It is usually preferable that your product complements the distributor’s existing product lines and appeals to their target customers as they can easily market and sell it to their existing customer base, which can increase the chances of the product being successful. 

When a product is a good fit for existing product lines, it means that it complements the other products that the distributor already offers, which can make it more appealing to customers and increase the likelihood that they will purchase the product. That’s why it is wiser to target distributors that are active in industries of your product’s category. This is not a must, as we have seen great success stories with distributors in other fields. As long as they believe in the product and their clients buy it, opening a new category is possible.

4. Reliability and reputation of the brand

The distributor wants to work with brands that have a good reputation for producing high-quality products and providing good customer service. 

When a product has good reliability, it means that it has a proven track record of being high-quality and able to meet customer needs and expectations, which can increase the likelihood that customers will purchase the product. Additionally, it means that it has a positive image in the market, which can increase customer trust and interest in purchasing the product.

A distributor that carries a product with reliability issues or a bad reputation, may suffer from returns, refunds, and complaints from customers, which can lead to financial losses and damage to their reputation.

5. Unique or differentiated from competitors 

Your product should be unique or differentiated from those offered by competitors to make it stand out in the market. This means that it offers something that other products in the market do not, which can make it more appealing to customers and increase the likelihood that they will purchase the product. Moreover, it can also help the distributor to charge a higher price for the product, as customers are willing to pay a premium for something that they cannot find elsewhere.

6. Easy to market and sell

Your product should be easy to market and sell, with good packaging and marketing materials. Think of packaging, will their retailers be able to place it on shelves or hang it in stores easily? Does it come in a display? Also, on the retail price, is it competitive it their market? Is the product easy to market to its target customers?

7. Can you produce enough on time?

Imagine the sales go well and they want to order thousands of units more, can your production capabilities handle the demand? Not being ready for large volumes is risk distributors don’t like to take. They usually start with 100 units depending on your product and pricing. If it goes to 1,000 or 10,000 can you produce in time and deliver?

8. Compliant with regulations and certifications 

Your product should be compliant with all relevant regulations and certifications to ensure it is safe and legal to sell in the distributor’s market. The intention is to protect the distributor’s reputation and financial stability. 

Each country may have different regulations and may require a different certification. Certifications are not cheap. This can be a deal breaker for many companies. Most distributors know the regulations when it comes to certain products, but it is always good to do your research before entering a new market. A distributor wants to avoid legal or financial penalties, such as fines or lawsuits, which can be costly and damaging.

9. Marketing budget

Marketing may be costly, particularly if you’re introducing a new line of goods. Because it takes time to set up floor shipments, in-store signage, and other marketing materials, the distributor won’t want to invest a lot in creating a product that won’t endure the costs of marketing and promotion.

If you have a marketing budget that is a plus for many distributors. It is not a must, but it will help them get your product at certain retailers. Allocating a small marketing budget for in-store materials or activities will come a long way. 

In summary, before starting to focus on presenting your product to distributors, you have to understand in depth what do distributors look for in a product. Thus, make sure that your product fulfils most if not all of the characteristics above. Also, be ready to build strong connections that will lead to long-term partnerships.

Looking for quality distributors? Check out Tradesnest.com. A global B2B platform for consumer electronics brands and distributors.

7 steps to get your product in front of retail buyers

7 steps to get your product in front of retail buyers

Do you have an innovative product and want to move from e-commerce to retail shelves? We created a guide with 7 steps to get your product in front of retail buyers.

Despite the increase of sales in e-commerce over the past few years, surprisingly just a small percentage of retail sales is made up of e-commerce. Specifically, retail sales from e-commerce represent only 14.5%, according to eMarketer findings. This indicates that more than 85% of retail still occurs in-store.

On top of that, by getting your products to retailers, the benefits are huge. 

For example:

1. The order volumes of your products are significantly larger.
2. You can place your products in new markets and territories.
3. You can place your products in front of new types of buyers.
4. You automatically have huge exposure.

What steps do you need to take to get your product to retail retailers?

1. Is your product ready to get in front of retail buyers?

What a retail buyer initially looks for is your product’s traction and to what extent your product is successful in the market. In this process, retail buyers usually assess the packaging of your products. For example, they check if your packaging has a peg hole to hang it on the store shelf. Also, they compare your pricing with similar products or other solutions they currently offer. Additionally, if your product has all the certifications needed to sell in that specific market, can enhance its image. Another important factor to consider is if you are able to handle large order volumes and if you are able to ship your products to all of their warehouse locations. 

The main goal is not to get your product on the shelves, but what will your company do to help it get off the shelves? You may support this process with marketing activities to create awareness and start building engagement. Marketing activities could be both digital and traditional methods, such as online ads, email campaigns, ads on TV, flyers, etc. Just make sure that you will do some research before contacting the retailer of your interest to understand how many stores they have, what kind of products they sell, what is the pricing of their existing products, etc. 

A valuable tactic that will help you to make the right first impression on your ideal retail buyer is to get feedback from distributors. Retail buyers are overwhelmed and often you do not have the chance to book a meeting directly with them. You are probably going to send them some samples first. Nevertheless, every day they receive dozens of new product samples, so it is essential that you have a product that is both market ready and can stand out from the crowd.

2. What makes your product unique?

Before you start pitching your product, you need to tell a story that can make your brand memorable and stand out from other products in your niche. Usually, retailers want products that provide something new or products that solve a problem.

A product can be made unique by its design, features, brand, or its story. It is important to make sure a product stands out from its competitors by providing something that is different and adds value to the customer’s experience. This can be done by customizing the product, adding unique features, or giving the product an innovative twist. Additionally, unique packaging and branding can help to make a product stand out from its competitors.

In order to understand the extent of your product’s uniqueness, try to define:

• What are the different characteristics of your product in comparison with your competitors
• If you fulfill specialty niches
• If your pricing is lower or higher than your competitors
• If your target market is suitable for your product
• If the margins you offer to retailers are lower or higher than your competitors 

3. Identify the right retailers for your product

The next step to get your product on the retail shelf is to search which retailers are a good fit for your product category. You need to specify what kind of brands the retailer sells and where your products will do well. However, often you can target different types of retailers with the same product. For example, if your product falls under the office supplies category, you can target bookstores, supermarkets, and electronic stores at the same time. You can follow this process: 

-Research your target market: Start by researching your target market to determine who your best customers are. Look at demographics such as age, gender, location, income level, and lifestyle.

-Identify potential stores: Once you have identified who your ideal customers are, look at stores that carry products that are similar to yours. 

-Consider your pricing: is the retailer offering similar products within your price range?

4. Master your retail pitch

Besides your product’s unique and innovative characteristics, the art of storytelling will give an additional boost that can make your product stand out. People love stories and so does the buyer. Thus, you have to make your product’s story attractive. An effective technique is to do some research beforehand to understand who you will be pitching to and if there are specific times of the month or year when they consider adding new products.

If you want to make your pitch more convincing talk about your success:

• Which other retailers carry your product
• How many units have you sold to date
• Your clients’ reviews, success stories, case studies, etc.
• Social media presence (followers, visitors, unique content)
• Production capabilities. If your product would do well on shelves, can easily produce more?
• What kind of people buys your products? Which is your target audience?

5. Can you handle the volume 

Can your product cover the needs of both e-commerce and in-store retail sales? Usually, companies are selling to national retail buyers that have many stores. As a result, it is necessary to have the right production capability. Initially, you need to evaluate your manufacturing process thoroughly and determine whether it makes sense from a logistical and financial point of view. A common mistake you need to avoid is to find yourself in a position where you are not able to supply your e-commerce or a retailer because you have already fulfilled requests from another retailer. Thus, before moving to the next step, try to answer some key questions.

Can you scale up to handle anticipated retail requirements? Remember not being able to deliver on time the requested volume the retailer can send you huge fines and delist your product, which has no chance of getting back in. The biggest problem for a retail buyer is having an empty shelf. Not only are they losing sales but they risk their customers may stop shopping there as a whole if they can’t find the product they want to buy.

6. Are you offering a good margin

This is a difficult topic and it obviously changes for each retailer and each country. We would recommend having a 30-35% margin calculated in the recommended retail price of your product before you approach the retail buyer. Before offering your prices, a fair question to ask them is what margin are they looking for. The percentage may also differ if they are only going to list your product online or directly in stores. In addition, you should take into account, where are they going to place your product and in how many stores. But also, how many units for each store (i.e. 6 or 12 units per store)?

Keep in mind that If you are not paying for a premium shelf space, you can’t expect to have a premium location. Unless your margins are great and you have the hottest product in the market right now. 

7. Find distributors

If you want to get your product in front of retail buyers is hard, especially if you have no presence in that country. National retail buyers may want to work directly with you to get better margins. However, receiving goods from overseas and shipping product returns back abroad is a huge hassle.

Distributors offer the possibility to buy your product and keep it in their warehouse to ship to any retailer directly locally. More importantly, they can introduce you to retail buyers as that is the core position. Distributors know exactly what margins retailers want and how they view products. Therefore, using a local well-presented distributor will give you the added advantage of getting it right the first time in front of retail buyers. Distributors also know exactly what certifications are needed in their market to get your product listed. Moreover, distributors understand how to brand your product locally in their market. 

Finding the right distributor with the best retail connections is not easy, but we have compiled the best consumer electronics distributors from around the world on one platform. If you want to learn more about Tradesnest and how you can find the right distributor for your product you read this article or sign up directly for free on tradesnest.com.

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