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REPOR T

brands to consider alongside the retailers mentioned Despite this distribution channel being quite attractive for
above. However, the ever-changing nature of Amazon’s brands, the competitive nature of this sector does pose some
algorithm alongside the lack of opportunities for brands challenges:
to communicate directly with consumers does mean • There is often a lead time of 3 months between presenting
it’s incredibly hard to successfully build a brand on this the line and getting approval from legal & product
platform, dulling its shine somewhat. compliance.
No matter which online retailer brands choose to target, • Sales need to be > $US25,000/minute to be considered
it is more than likely that they will encounter heavy set-up successful.
costs and need to rely upon influencers in order to gain • QVC buyers work with a compliance team to prove and
traction and thrive via the eCommerce channel. For this justify each product claim being made, so brands should have
reason, it’s vital that brands work with somebody with all clinical trials and other testing carefully documented and
experience and connections in this area in order to create a ideally tested by a QVC approved lab.
robust entry strategy that will see them succeed.
What’s Next: The Path to Being Consumer
TV & Home Shopping: Where Value and Retailer Ready
meets Prestige The intricacies of the distribution landscape in the USA is
Watched regularly by 98 million households across America, certainly a lot for brands to digest and understand, but once
QVC and HSN have merged to form the premier, market- brands have carefully considered all their options and are
leading home shopping network which sees 75% of sales ready to begin their journey towards entering the market,
through TV direct response, and 25% through eCommerce. their next step will be choosing their path: sales agents, direct
The majority of beauty products featured are either hero to store or distributors.
products, created by indie companies as well as high-end Brands will also need to ensure they have a robust strategy
brands, or fall into the clean and inclusive beauty categories. to engage these retail buyers, distributors and sales agents
The average retail price point consumers will see here is to aid in their success. This includes training tools, profit and
US$50-$75, which is usually discounted from the traditional loss, brand presentations and commercial offerings to name
retail shopping tag, making them ideal for brands whose but a few.
products fit within this bracket. With such a dynamic and changing landscape in front of them,
brands looking to enter the US market will
be in for an exciting period of transition
that will not only bring them great
opportunities, but some challenges too.
We therefore would strongly recommend
brands seek advice from experts who have
experience in this market before making
any decisions in order to make sure they
are not only consumer and retailer ready,
but also understand the advantages and
disadvantages of each route to market.

For more information on how IL Brand Consultancy can help you successfully expand your brand

into different markets, please contact us on info@ilbc.co.uk or visit our website at www.ilbc.co.uk.