4 HEALTH RETAIL OPPORTUNITIES TO BOOST YOUR SALES

There is no doubt that the face of retail in Australia is evolving. There are hurdles to overcome… but there are also many opportunities, particularly for those in the booming health retail space.

Our Unique Health Products Sales Reps are on the road meeting with retailers every day. This gives them incredible insights into the current state of retail across a broad range of categories. 

One of those Sales Reps is Laura Collins. A qualified Nutritionist, Laura has been on the Unique team for more than seven years. She knows health retail inside and out and has her finger on the pulse for what’s trending in the industry.

So we sat down with Laura to get her take on the key opportunities for natural, organic, fair-trade and eco-friendly retail today.

1. CAPITALISE ON MARKET GROWTH

In recent years, the way consumers look at health has changed. Not only is the definition of health much broader, covering everything from immunity to wellness, mindfulness and lifestyle elements of health, but it is also more mainstream.

“There is an understanding and acceptance now that health food doesn’t just belong in a health food store ,” explains Laura. “Health food often has higher margins and offers consumers a point of difference. More and more grocery, pharmacy and other specialty retailers are taking on health food products in a big way.”

There are also a number of consumer trends that are driving this mainstream shift. Plant-based eating is on the rise, as are low-carb, low-sugar and keto diets. Consumers are also far more savvy about the sustainability of products and they are actively seeking out eco-friendly options.

“Consumers are looking to brands like Ethique to reduce their reliance on plastic, or RXBAR for their super clean and transparent ingredients lists. There is so much opportunity for retailers to capitalise on.”

2. INTEGRATE YOUR SHELVES

The traditional approach to health food in Australia has been segregation. But Laura argues that integration is the future. It’s an approach that has seen much success in the USA and UK. It’s what customers want… and it’s also good for business. 

“A lot of grocery stores have a health or gourmet section, but this can be quite limiting,” explains Laura. “In this case, only consumers who believe they can afford it head to that section. However, if your shelves are integrated and the health products sit alongside the rest of your range, you give customers more choice.

“I worked with some grocery stores in Sydney to integrate. The result was higher sales for those health products compared to similar stores in the same area that took a segregation approach. Where it makes sense to do so, weaving the products through the shelves can train the customer to purchase differently. Otherwise, you could be missing out on potential sales.”

Integration is better for sales and it’s also a better customer experience. By integrating all the options, from private label through to premium health brands, customers can make a simple decision without having to snake around different aisles.

3. EMBRACE NOOTROPICS AND ADAPTOGENS

Laura also asserts that the products with a hugely promising future are those with functional ingredients such as nootropics and adaptogens. 

“We are an increasingly stressed society and consumers are looking for products to help their health and immunity. Natural alternatives to help with these concerns are increasingly popular. Adaptogens – such as rhodiola or siberian ginseng – can be really helpful. People can have vitamin deficiencies but also mineral deficiencies so mineral rich supplements such as Evolution Botanicals Himalayan Shilajit or Supercharged Food Fulvic Humic Concentrate are popular.

We haven’t even scratched the surface on nootropics in Australia but these ingredients may help with focus, productivity and reducing brain fog.”

4. OFFER HEALTHY SNACKING

Keto and healthy snacks are two categories that Laura can see have a big future in the Australian market. With the popularity of keto diets and consumers reaching for convenience, brands and products that combine the two, such as Keto Naturals, HeroCup or VitaWerx, are ones you want to have on your shelves.

“Anything keto and any healthy, clean snacks are huge in health retail right now,” says Laura. “Consumers are looking for the convenience of being able to reach for snacks and products that they know are good for them. Other wellness products such as The Ginger People Ginger Shots and Alchemy Elixirs are also popular. 

“Consumers are looking for products that offer a boost to their health and that’s what our range of brands and products can offer.”

YOUR TRUSTED ADVISOR IN HEALTH RETAIL

At Unique Health Products we distribute hundreds of health and wellness brands across Australia. Whether you are trying to reach new customer segments or have existing customers crying out for more natural, organic, fair-trade and eco-friendly products, we stock the best. You can shop online with us 24/7 here, or call our friendly sales team on 1800 787 904. If you don’t have a wholesale account with us yet, you can register for one here.

THE CHANGING CONSUMER BEHAVIOURS DRIVING RETAIL

There has been a whole lot of moving and shaking in the retail space, with brands and businesses having to pivot left, right and centre to stay relevant and accessible to the changing consumer behaviours of Australian shoppers. So as we enter a new year, how can we best reach our target markets and stay front of mind when it comes time to push the ‘pay now’ button?

Meet the needs of your customers by considering these three purchasing trends underlying how Australians are choosing to shop today.

The mobile shopper

We are exercising, socialising, working, shopping and more—online. It’s not just Gen Z and Millennials anymore; it is all of us. Australia Post reported more than 8.1 million households shopped online between March and August last year, an increase of 16% from the same period the year prior. Two thirds of these households have continued to shop online due to convenience and most of us are finding out about brands, comparing prices and shopping directly on our mobiles.

Consumers want their online shopping experience to be quick and easy. This means everything from your website, customer service, checkout process and payment apps need to be mobile-friendly in order to stay in the game.

If you don’t have capacity to ship orders, there are certain digital experiences that consumers are getting used to, like BOPIS (Buy Online, Pickup in Store). So you can still use your digital presence to drive sales in store!

The ‘buy now, pay later’ enthusiast

Australians are moving away from traditional credit methods and embracing the Buy Now, Pay Later (BNPL) options such as ZipPay and AfterPay. Cash-strapped consumers get their purchases instantly, with the full amount paid off in regular, interest-free instalments within a couple of months.

Nielsen research shows 91% of Australians are familiar with these payment methods and the Global Payments Report from WorldPay predicts regular users will pass 4 million by 2023.

For retailers, buy now, pay later platforms provide the opportunity to benefit from more immediate sales — both online and instore. Specifically, it increases the chances of growing a customer base, and it incentivises customers to spend more than they initially intended.

The value-driven buyer 

According to research by Deloitte, “today’s consumer has a new set of value drivers, one that is more intrinsically linked to their core values and beliefs. Traditional drivers such as price, taste and convenience remain important in their buying decisions, but new evolving drivers such as social impact, health and wellness, safety and experience have emerged to the forefront. More than half of consumers weigh these evolving value drivers more heavily than traditional ones and 63% are willing to pay more for products where social impact values are demonstrated.”

In addition, a recent Consumer Index Report by Suzy Consumer Insights shared that 65% of consumers are more likely to support a brand that cares about the same social issues they do. Making it clear that for the majority of Australians, transparency regarding sustainability, ethics and supported social causes is now an essential part of building consumer trust and loyalty. 

Stay ahead of changing consumer behaviours with top-selling natural health and beauty products from Unique Health Products. You can shop from our online store 24/7 or by calling our friendly sales team on 1800 787 904. If you don’t have a wholesale account with us yet, you can register for one here.

THE PSYCHOLOGY BEHIND PRICING

HOW DO YOUR CUSTOMERS DETERMINE IF A PRICE IS HIGH OR LOW?

Stanislas Dehaene, one of the leading researchers in numerical cognition, says there are three distinct and connected ways our brains perceive price – Arabic, auditory and analogue – and understanding how they work together can help you price products to appear more competitive.

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OUR TOP TIPS FOR COMPETITIVE PRICING

Record your results and experiment with these tips to discover the factors influencing your sales.

CRAFT THE PRICE TO SEEM SMALL

Reduce font size and syllables

Using smaller font taps into the analogue way shoppers perceive price, while fewer syllables in the read word reduce auditory length.

Use descriptive words before your price

Place words like ‘tiny’, ‘small’ and ‘low’ next to your price; never say ‘high value’ as the word ‘high’ detracts from your ‘low’ message.

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Divide prices into daily amounts

Make more expensive products like supplements and remedies appear cheaper by diving the price out to say ‘only $x a day’.

MAXIMISE COMPARITIVE PRICES

Use exact numbers for higher prices

We’re more likely to see higher prices as reasonable if they are exact. For example, use $58.12 instead of $60.

Position large quantity purchases right

For example, “30 tablets for just $10.99” allows shoppers to anchor on the high quantity (30), which makes $10.99 appear an attractive deal.

REDUCE PAYING PAIN

Emphasise the quality

Shoppers see prices based on material cost as fairer than those based on supply and demand. Emphasise product quality so customers think your profit is low and the deal is good.

HELP CUSTOMERS UNDERSTAND PRICES QUICKLY

Be clear and concise

Busy shoppers will spend more money and time in your store if they can easily understand prices and deals.

Get your rounding right

Rounded numbers are easier to process, however for rational purchases they can make prices seem artificially higher. So use exact numbers ($19.86) for rational purchases, and round for emotional purchases ($19).

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DISCOUNT THE RIGHT WAY

Use percentages

Display prices under $100 as a percentage discount so the number will seem higher than the equal numerical value.

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Save sales until the end of the month

Discounts are more attractive at the end of the month as budgets wear thin.

Test it out!

Test your knowledge with a range of health and wellness products from Unique!

Need a login? Register here. Already have access to the Unique online store? Trial your new pricing skills with some fresh new health and wellness products here!

Retail Focus: Capturing and Communicating to the Right Customers

IT’S KNOWN THAT CUSTOMERS ARE THE MOST IMPORTANT ASPECT OF A BUSINESS, BUT WHICH CUSTOMERS ARE THE MOST IMPORTANT? WHO’S RESPONSIBLE FOR YOUR STABLE REVENUE?

These questions can stump owners, with figures often showing not enough of the overall marketing budget is directed to repeat customers.

The Chartered Institute of Marketing explains that retailers are spending on average four to ten times more to acquire a new customer in contrast to keeping a repeat customer. This doesn’t sound overly beneficial when in fact repeat customers spend 20% more than first-time customer. SumAll (Social Marketing and Data Science analysis experts) also identified that on average 25-40% of total revenue comes from returning customers.*

Break out box
The more often a customer visits, the chance of them returning increases. So how can you encourage them to return? Two ways to market to existing customers are: compiling an email data base and using it with social media, and email marketing.

 

GROWING YOUR EMAIL DATABASE
Email marketing, through sites like Mailchimp, allows you to directly get your message to specific contact groups and track your success. Building a strong contact database is the foundation. It’s also important to add contacts continuously, as on average an email marketing database will degrade by 22.5% annually.** Below are 3 tips on growing your email data-base.

Try traditional techniques
Ask for an email address in store and at external events. To encourage consumers to give their email address, offer a loyalty card, special or free gift in exchange.

Work with your website and social media
Use your website and Facebook page to promote online contests or subscription links that require an email address submission.

Leverage off current subscribers
Create remarkable email content that encourages your current subscribers to share with their contacts. Encourage this by adding ‘social sharing’ and ‘email a friend’ buttons.

 

BUILDING YOUR FACEBOOK PAGE
When businesses post on their Facebook page, as little as 5% of the total ‘Page Likers’ will actually see the post. *** To increase this percentage, businesses can either build their ‘Page Likes’ or pay to advertise on Facebook. When paying for advertising on Facebook you have the option to create a custom audience list. This allows you to specifically select who you are advertising to, rather than spending money targeting everyone. Your custom audience list can be created by using the Facebook name, phone number or even by uploading the email address of your contacts straight from your Mailchimp account. Below are 3 tips on building your Facebook page.

Set up strong
Select a vanity URL so customers can locate your page easily. Set a cover and profile photo that portrays your brand personality and add visual mile stones to build consumer trust.

Turn incentives into likes
Incentives help persuade consumers to be interested. This can be done by offering valuable information like promotions, coupons, discounts or prizes for those that like your page.

Create engaging content
Posting visual and timely updates 2-3 times a week increases engagement and virality, potentially attracting new fans. Responding to positive and negative comments is important.

* SumAll, The Importance of Repeat Customers, 2013.
** Andy Pitre, Where Marketers Go To Grow, 2015.
*** Jon Loomer, For Advanced Facebook Marketers, 2015.