Leading suppliers from across the nursery sector have come together for a virtual conference, addressing and discussing the uncertainties and challenges being faced by the industry during the Covid-19 pandemic.
Hosted by Progressive Preschool magazine and PreschoolNews.net, the online conference took place on Wednesday 29 April and saw high-profile names from a wide range of suppliers coming together in conversation about the current situation and how they are dealing with life and business during the coronavirus pandemic.
The latest of the virtual industry meet-ups saw Andy Crane (BabyStyle), David Welsh (Allison Baby), Richard Bamforth (DCUK), Luke Burns (Cybex), Amanda Jenner (My Carry Potty) and Matt Dyson (Rockit) sharing their experiences of business has been progressing throughout the period.
Unsurprisingly, much of the conversation focused on how business processes have adapted as the weeks of lockdown have progressed, as well as how retailers are ensuring that consumers have access to essential babycare products.
Matt Dyson started the conversation by telling the group about a charity auction which Rockit had recently held, with all profits going to the Red Cross Coronairus Appeal. “We are in the process of launching a new product called Zed and decided to auction the very first product off the production line to raise some money. We got some really positive feedback on social media, lots of engagement. It’s been good, but we were just looking for something we could do in a positive way, rather than just hoping it all ends soon!”
Also making plans to launch a new product during this period was DCUK. “We had planned to launch the new UPPAbaby range at Harrogate,” Richard explained. “And while it’s not had the razamatazz that a launch normally would, the sales have actually been really good. Retailers have bought into it blind and it’s selling very well. All online, of course.”
BabyStyle has also been seeing a continual stream of business, which is more than the company was originally expecting. “We are still really busy,” Andy said. “Much to my surprise! We were initially going to close down completely for the duration but there’s still a lot of business going on via online retail.”
BabyStyle – which is currently operating with a third of its workforce – has delayed the launch of its much-anticipated egg 2, which was originally being premiered at Harrogate. “We’re just going to watch what happens now,” Andy explained. “There’s a new launch round the corner but we’ll have to see how it all plays out.”
It was also generally agreed that while it’s positive that online retailers are able to step in and take the majority of orders, there is a danger that this will continue to adversely affect high street retailers even after the restrictions have been lifted. However, with most independents doing well in the period prior to the pandemic, it is widely believed that – in the main – they will continue making the most of the fact that they can offer a unique service.
“Our main concern has been for the retailers,” added David. “Our business is skewed towards retail rather than online, so we have definitely seen that have an impact on our sales. We had to do something to reddress the balance, so we got in touch with all our customers and independent stores and have upgraded their webpages with new images, videos, free direct to consumer deliveries… That’s done well, we’ve managed to tip the scales a little in our favour.”
The group then went onto discuss a range of other issues, such as direct to consumer sales, credit insurance and the possibility of reduced credit limits once the affects of the lockdown are clearer. With most nursery businesses still making a proportion of their expected sales via online channels, cancellations are making a significant dent in sales figures while also causing additional problems of their own.
“We are all having to be more careful,” agreed Luke, “I think we are all in very much the same boat, although of course those boats are all slightly different. We have been just concentrating on helping the retailers do the best that they can in the circumstances, that’s been our focus. We have now furloughed two-thirds of our UK team, although the back-up team remains at full capacity and is fully supporting the European business.”
“Online is of course doing well but – and there are less orders, so I’m able to look at them in more detail! – I’ve been really pleased to see smaller retailers making some significant sales at the moment as well.”
Speaking from the perspective of a smaller company, Amanda said she’s working harder than ever to take advantage of the fact that so many families have been seeing the lockdown as an ideal opportunity to begin potty training.
“We’ve been making the most of the opportunity wherever we can so I’ve been working with some big celebrities, we’re doing live streams together, all sorts. I’ve been investing more in social media as well, especially Instagram and Facebook,” she explained. “Online sales have doubled, it’s gone crazy. We’re selling well at retail as well, so I know I’m really lucky. I’m just utilising as much as I can but making sure I can still support the indies as well.”
The Rockit business model is slightly different, with most sales going direct to distributors based around the world. “As soon as the virus hit we did have a number of cancelled orders,” said Matt, “but fortunately nothing was being shipped at the time! I think those first few weeks were driven by panic, because since then things have picked up – especially in the territories which are doing well, such as Scandinavia and the Czech Republic – and we’re pretty much back to normal now.”
As a product which recreates the soothing effect of going for a walk, the Rockit has also come into its own during a period where outside activity is restricted. “We’ve had quite a lot of really positive comments on social media,” Matt revealed. “That has started to snowball as well, so hopefully we will continue to hold up quite nicely.”
On a closing note, it was all about looking to the future.
“We’ve got to look to the future,” said Amanda. “We have to be positive – and at least we know poeple will always be having babies!”
Andy agreed: “We have to remember that people need to buy our products – they might not be buying right now, but the business hasn’t just gone away, they will still need all those items at some point. In that respect our industry is fairly safe and we are in a very fortunate position.”
Luke agreed, pointing out the sales pattern Cybex has been reporting across Europe in recent weeks. “Each week we have seen sales return as territories open up,” he explained. “So we are more resilient than most – it’s there and it will come back to us as well.”
* Feedback and comments are welcome to this article – please get in touch if you’d like.
* PreschoolNews.net is also keen to hear from suppliers and retailers who would like to be included in the next video conference – get in touch with Jo Pilcher here.
