Promising container-loads of well-priced product without the up-front costs, Denmark’s Trade Point is a middleman with a difference, says Bo Simonsen, the company’s market manager for the UK & Ireland …
As a Dane who’s spent 19 years living in the UK, Bo is no stranger to import operations. Having worked in sales roles with the likes of Willis & Gambier, Actona and Flexa, he’s well versed in the nation’s unique demands and approaches, and believes that Trade Point offers the UK’s container buyers a degree of choice and service that’s unrivalled in the market …
How’s business?
Since Trade Point entered the UK last April, we’ve opened accounts with numerous independent and national retailers, who increasingly need more competitive price points and higher margins – and container buying is the best way to achieve that.
But if you’re buying containers in the traditional way, there’s also the risk of getting burned – so it’s crucial to pick the right partner.
What are the company’s credentials?
Trade Point celebrated its 20th anniversary last year. We’re well established on the international stage, with offices and showrooms in Denmark, China, Vietnam, Indonesia, India and Brazil, and we have manufacturing partners in many of these countries, plus in Eastern Europe. From these, we offer retailers the world over full containers of furniture and accessories.
What’s the scope of your product range?
It’s truly a one-stop shop. We have every major product group covered, from entry-level to high-end models, encompassing indoor and outdoor furniture and accessories. We’ve got furniture that looks a million dollars but costs much less, so our customers can make a healthy margin.
How do you keep your prices low?
It’s all about scale. We currently offer 14,628 SKUs, and ship close to 15,000 40ft HC containers each year, and this immense volume means we can offer very competitive pricing, and give retailers a better deal than they could find anywhere else.
Do customers have to purchase large amounts of the same product, then?
We work in volume, but we’re flexible when it comes to mixing the ranges in each delivery. We don’t have a one-size-fits-all approach – we work together with our partners in each market to build the best set-up.
So you’re able to develop white-label products alongside your stocked lines?
Customers can tap straight into our established lines – which are grouped this year within three must-have trend categories – or we can build a range based on a design brief.
When we start working with multinational retailers, for example, we look at where we can bring value to their customers, and identify any gaps in their offer. We then discuss development plans in line with coming trends, while making the most of our existing stocks – or design and develop specific products for them.
If we take the latter approach, the retailer will enjoy exclusivity for that line in their territory, but we’ll explore where else it might sell. Basically, it’ll be a white-label product in its country of origin, but it may also become a stock line for our international customers.
Even a one-store independent might hit on a fantastic idea and come to us to bring it to the market – it could be that we see the potential for it to be sold elsewhere, or a customer in another country already has something similar in development. It then becomes a real win-win scenario – production of the range grows to the point at which everyone benefits from better prices and quality.
How can you guarantee that the quality levels are maintained?
We have QC set up under Danish management. In China alone we have more than 45 people whose job it is to ensure you get the products you want, as per any initial agreement.
And customers don’t pay any money up front?
Trade Point finance the up-front production payments – you only pay when the goods are ready to ship.
Anybody can travel the world and buy products at fairs – the problems start when you don’t get what you’ve agreed, or there’s a breakdown in the supply chain. We take a complex process, simplify it and add security. Once the order is placed, it’s our responsibility to see everything through – from ensuring our factories are regulated and the workers ethically treated, to overseeing the product’s entire life cycle.
And if there is a problem?
Then we take care of it, in person. If there’s an issue with one particular batch, we need to quickly establish if there’s the potential for that to affect other products and customer bases. We also need to make sure the factories can handle what we’re putting through them, and bring them up to speed if there’s a problem.
Trade Point’s owner, Rene Nielsen, understands the importance of a direct business model that makes things as simple as possible for the customer. He once told me: “Trade Point must stay nimble on its feet – I don’t believe in complicated layers of management, but in letting the people in charge of their area take action.”
Have any global industry developments significantly affected Trade Point of late?
The changes in China over the last 8-10 months have been amazing. Factories have closed down overnight, entire industrial areas have been shut down for months, and raw material prices have increased drastically. New environmental regulation has really concentrated and focused the supply chain over there – so we’ve increased staffing and beefed up our management to make sure the disruption is dealt with before it hits the customer.
That said, we manufacture in many countries, so our eggs aren’t all in one basket!
And has the Brexit process already impacted your UK business?
Brexit is Brexit. There’s nothing you can do about it, other than focusing on bringing the best products to market, at the right prices.
Can you sum up your offer?
We have global reach and a local set-up. We’re already designing, sourcing and delivering products at a low fixed cost to some of the biggest retailers in the world, and are now ready to take on the UK market.
Most importantly, we make it easy to safely buy great-value product, all from one supplier.
Where can I see the ranges for myself?
We attend plenty of international shows, but our 55,000 sqft showroom in Odense, Denmark is probably the best place to see what we offer. It always reflects the latest trends, making it easy for retailers to pick the winning products.
