retail brands


Kleenex is leaving Canada but what are the major challenges new brands face in getting into retail in Canada?


Entering the retail market can be a daunting challenge for new brands, and there are several key hurdles they often face:

Established Competition: One of the biggest challenges is competing with well-established brands that already have a strong presence in the market. Consumers tend to stick with familiar brands, making it difficult for newcomers to gain traction.

Shelf Space: Retailers have limited shelf space, and it’s highly competitive to secure a spot. Established brands often have long-standing relationships with retailers, making it difficult for new brands to secure a place on the shelves.

Distribution: Getting products into stores nationwide can be challenging. New brands often lack the distribution networks and resources of larger competitors, making it costly and logistically complex to reach a broad audience.

Marketing and Promotion: Building brand awareness and attracting customers is expensive. Brands often struggle to allocate the necessary resources for effective marketing and advertising campaigns.

Consumer Trust: Consumers tend to trust well-known brands due to their track record and reputation. New brands must work hard to earn consumer trust and loyalty, which can take time.

Supply Chain and Logistics: Ensuring a consistent supply of products to retailers can be challenging for new brands. Delays or disruptions can lead to lost opportunities and damaged relationships with retailers.

Regulations and Compliance: Depending on the industry, there may be regulatory hurdles to overcome, including compliance with safety and quality standards, which can be particularly challenging for new entrants.

Costs and Pricing: New entrants may struggle with pricing strategies. They often need to compete on price to attract initial customers, but this can erode profit margins.

Economic Factors: Economic conditions, such as recessions or fluctuations in consumer spending, can impact the ability of brands to succeed in the market.

Brand Differentiation: Finding a unique selling proposition or differentiating factor can be difficult, especially in saturated markets. Without a compelling reason for consumers to choose a new brand, it can be challenging to gain market share.

Retailer Requirements: Retailers often have specific requirements and demands, such as packaging, labelling, and payment terms. Meeting these requirements can be costly and time-consuming for entrants.

Seasonality: Some products are highly seasonal, which can make it challenging for new brands to establish themselves and generate consistent revenue.

Consumer Trends: Staying ahead of consumer trends and preferences is crucial. Entrants need to anticipate and adapt to changing consumer demands quickly.

While these challenges are significant, they are not insurmountable. Successful new brands often employ strategies like effective marketing, innovative product development, strong relationships with retailers, and a keen understanding of their target market to navigate these obstacles and establish a foothold in the retail industry. Additionally, having a well-thought-out business plan, ample funding, and a commitment to long-term growth can improve the entrant’s chances of success in the competitive retail landscape.

Join Food Biz Mentoring in their Start-up Stronger Workshops to learn how you can navigate these challenging obstacles and enjoy brand success.