Breaking into the European supermarket market can be a rewarding opportunity for retail technology providers. If you offer technology like stock-taking software or handheld stock-taking devices, it’s important to understand how to approach this market. Here’s a simple guide to help you get started.
1. Understand the Market
Europe is a diverse region with many different countries, each having its own way of doing business. Major supermarket chains like Tesco (UK), Carrefour (France), Aldi (Germany), and Lidl (Germany) are key players, but each one operates differently.
- Know the Key Players: Research which supermarkets are popular in the countries you’re interested in.
- Market Trends: Stay informed about trends like digital transformation, sustainability, and customer experience, which are becoming increasingly important in Europe.
2. Create a Strong Value Proposition
Supermarket chains are cautious about adopting new technologies, so you need to show clearly how your product will benefit them. This could mean saving them money, making their operations more efficient, or improving customer satisfaction.
- Customisation: Adapt your product to meet local needs, such as complying with European regulations like GDPR for data protection.
- Proven Success: Share examples of how your technology has worked well in other markets.
3. Identify the Decision-Makers
To sell your technology to a supermarket, you need to connect with the right people. Supermarket chains have complex organisations, and decisions usually involve many departments.
- Procurement and Supply Chain Managers: These people look after how the supermarket buys products and manages its supply chain. They are key contacts if your technology can help in these areas.
- IT Directors/CTOs: For any tech solution, the IT department will be involved. They will check how well your technology can be integrated and whether it meets security standards.
- Marketing and Customer Experience Managers: If your product affects how customers interact with the supermarket, the marketing team will be involved.
- Sustainability Officers: With a growing focus on eco-friendly practices, sustainability officers have a strong influence on decisions related to green technologies.
4. Approach the Right Channels
Once you know who to talk to, the next step is making contact. There are several ways to do this:
- Direct Outreach: Reach out to the decision-makers via email or phone. Make sure your message is clear and shows that you understand their needs.
- Industry Events and Trade Shows: Attend or exhibit at events like the Retail Technology Show in London or EuroShop in Düsseldorf. These are great places to meet key people in the industry.
- Local Partnerships: Work with local distributors or consultants who already have connections with supermarket chains. This can make it easier to enter the market.
5. Be Ready for a Long Process
Selling to large supermarket chains can take a long time, often several months or more. Be patient and persistent, as there will likely be multiple meetings, presentations, and negotiations.
One retailer responsible for buying stock-taking software and handheld stock-taking machines said, “It is a long process—you have to go through many steps. But once the decisions are made, it is very lucrative.” This highlights the importance of sticking with the process, even when it seems slow.
- Pilot Programmes: Offering a trial run of your product can help demonstrate its value without requiring the supermarket to commit fully at the start.
- Compliance and Certification: Make sure your technology meets all relevant European standards and certifications.
6. Use Local Expertise
Having a local presence or understanding local markets can make a big difference. Consider hiring local staff, forming partnerships with European companies, or setting up a regional office.
- Cultural Sensitivity: Europe is diverse, and business practices vary from country to country. Understanding local customs and negotiation styles will help you build better relationships.
Entering the European supermarket market is challenging but rewarding for retail technology providers. By understanding the market, creating a compelling offer, and connecting with the right people, you can successfully introduce your technology to this diverse and competitive region. Remember, patience and persistence are key, as the process can be lengthy but ultimately profitable.
