Tag: latexballoons

Is there ever a good time to sell stuff ?

Posted on by markybrett

1634 great year for selling Dutch Tulips . 1637 not so great.

If you were to take the national media seriously, you would very rapidly come to the conclusion that the market for everything is bad.

Major supermarket with 2,800 sites to close two stores permanently in days – is your local shutting?

The Sun

Yes that major supermarket is Tesco’s and they were closing 2 , yes 2 stores .

The Sun also reported earlier that week with a headline Major Upset for the High Street , as chain closes 2 stores...This was New Look , who have been closing stores for a number of years. The Sun also confirmed that the Chain would be opening six later in the year . So what they chose to headline were the two closures and not the six new ones.

And yet …..

Primark owner raises profit guidance for second time as sales surge 15%

Retail Gazette September 2023

Majestic Wine to hire 200 staff ahead of its ‘biggest Christmas ever’

Retail Gazette September 2023

Next defies expectations as it raises profit outlook for third time this year

Retail Gazette September 2023

JD Sports on track for over £1bn profits amid solid sales growth

Retail Gazette September 2023

Things are tough. But there is still a huge amounts spent each week on stuff we need and stuff we don’t need . The critical issue is making sure you are one of the retailers that get their hands on that cash. At a time when a large Retailer goes bust, the first shout (from the media) is that every retailer is going to hell in a hand cart . Its over . Nobody can operate on the High Street , everyone has gone online . Clearly not true .

If it was all over for the High Street retailer you would not see these sort of headlines. Moreover , you would not see Retailers picking up stores from the demise of Wilko . They will all be rebranded, as the Wilko Brand was already a fading brand and had been for a number of years . It was no longer a good retailer . Their consumer was still buying the type of product Wilko sold but from better retailers .

It is always about ,and always has been, Good retailers and not so Good retailers .The same is true of whether they are bricks and mortar or online. The problems and issues are, sometimes, different but the consequences the same. Looking through a list of non active clients over the last five years, the vast majority are actually or rather were online operators who have gone out of business . Some more recent closures have come about despite having major upturns during Covid , making the false assumption this was the new norm .

There is no norm. I think this part of the biggest problem facing Retail now and going forward. You can think what is the norm ? We all have to think about Tomorrow , we can’t doing anything about Today it is too late .

These are some of the issues and resolutions facing big retail corporations worldwide, or at least according to Deloitte …..

As consumer product companies struggle to obtain the inputs and commodities they require, they also face a changing geopolitical and business environment. This involves governmental restrictions on technology transfer, fraught relations between the world’s greatest powers, and increased regionalisation of supply chains. It also involves new efforts by global companies to reinforce supply chain resilience and redundancy, partly by diversifying supply chain processes and no longer depending on just one country or supplier. As a result, we may begin to see a consumer products industry emerge that is, in many ways, more diverse than before.

Dr Ira Kalish, Chief Global Economist, Deloitte

While some of this has an indirect impact on the smaller enterprises few are in a position to do anything about these macro factors. However, I do see the last sentence, from the above quote, having a resonance much further down the chain . That very sentence could very well be have written specifically for Independents .

Diversity in terms of product and service, are precisely where the Independent needs to be . Within my own industry i.e. Party, the success of the good Independent Party Retailer in the UK and beyond over the last couple of years is down to diversity. And by diversity I refer to specifically balloon decoration . This is has been taken to a different level .

It is something that cannot be reproduced within large retail chains . And most certainly cannot be sold at a discount but it has come about because the consumer seeks something different and is prepared to pay for it. Of course, this is an over simplification. But it serves as an illustration of creating products and services that are innovative and diverse.

There no simple solutions to effective retailing . Since 2008 (financial recession) through Brexit, Covid and the current cost of living crisis (please note this is not something confined to the UK) there has not been a positive retail environment . Yet many retailers have thrived . I cannot think of one Good Retailer-multiple or otherwise that has had to close because of the current trading conditions .

One very good reason

The total value of retail sales, including fuel, reached a peak value of approximately 495.71 billion British pounds in 2022. This marked an increase of about 35 million British pounds on the previous year. 

Statista.com

This , of course, included items such as fuel and food but it still represents a heck of a lot of money . I think if you examine the successful retailers e.g Next, Zara, Uniqlo, Dunelm and the major discounters , all have a number of common factors:

  • frequency of new product
  • good stock holdings
  • innovation
  • understanding their customers perception of value

Dunelm has seen its first-quarter sales up 9%, largely driven by volume, as customers continued to revamp their, bedding and home decorations despite the ongoing cost-of-living crisis.

The homewares retailer said both its stores and digital channels ‘performed well’, with the contribution from digital sales up 2 percentage points year-on-year to 35% as looks to ‘take further market share.’

“Growth was broad based across our categories with our new autumn/winter ranges, including new collaborations with Disney and the Natural History Museum, resonating well,” the company said in a statement.

The company added that it is on track with its accelerated store roll-out plan which includes opening five to ten stores per year for the next two years.

Retail Gazette

The following is a list of lesser known brands but have the common factor of being the fastest growing retailers in the UK

  1. AU Vodka (£43.9m, 413%) – a premium spirits
  2. Ooni (£208m, 289%) – a pizza oven retailer
  3. Lounge Underwear (£71.3m, 113%) – lingerie retailer
  4. Wolf & Badger (£24.6m, 108%) – a fashion marketplace
  5. Gousto – (£315.2m, 95%) – meal kits
  6. Fairfax & Favor (£28.9m, 85%) – a country lifestyle brand
  7. Sosandar (£29.5m, 81%) – women’s fashion
  8. Butternut Box (£34.9m, 79%) – fresh dog food delivery
  9. Beauty Pie (£53.1m, 79%) – cosmetics buying club
  10. Muc Off (£44.3m, 73%) – bike cleaning products

The Retail Bulletin

The retail brands in the 2023 Top 100 logged cumulative sales of £2,227m – whereas the Retail businesses in the Top 100 last year achieved just £1,874m. Of the 26 retail companies in the 100, 18 of them are new entries this year

The Retail Bulletin

So much of this indicates is that there is always a good time to sell stuff. Just make sure it is the right stuff sold in the right way….

Who Needs the Big Brands ?

Posted on by markybrett

So….I think there are 2 types of ‘Mega’ Brands.

Rock Hard (Hard Rock looks better but makes no sense ) and Soft Rock (looks better and sounds OK).

Rock Hard

Equates to the likes of Apple . When a consumer goes online, or goes in store, and searches (asks) for Apple, that is invariably what they are are looking for. An Apple Product and not something that is a bit like an Apple product. I think there are few that fall into this category . Coca-Cola maybe be another. I, for one, when asking for a Coke (rather unfortunate additional connotations here) I am asking for Coca-Cola and not Pepsi nor any other Cola. I think this may fall into a bit more of a sub category HardSoft .

Microsoft, perhaps McDonalds, certain upmarket Car Brands, and in a very peculiar inverse sort of way Google. By that, I mean, many will use other search engines but will inevitably say they have Googled something. When did you ever here some one say …

I Binged (edged, chromed, safaried…..) such and such.….

Like it or not Amazon cannot be excluded from this Grouping as they most certainly do not fall into the category below as nobody benefits from the Amazon brand apart from Amazon.

Soft Rock

There’s loads of these. Big Brands which have positive impacts on generic smaller brands.

Levi’s, who hasn’t gone into a store looking for Levis when what you are, actually, doing is looking for a pair of Jeans. Hoover became the generic term for Vacuum Cleaners. Even Dyson is often used to describe bag less or cordless upstarts.

This category is littered with huge world wide brands but in most cases other smaller players benefit to a degree from the consumers awareness in the product because of the Big Brands own activities.

All these Super Brands spend hundreds of millions each year promoting their products in order to remain Super Brands. Yet some fascinating research has just been published.

http://www.inriver.com Feb 2022 via Retail Gazette

We commissioned OnePoll to
conduct an independent survey
of 6,000 online shoppers from
across the US, UK, and Germany
to share what they think about
poor product information,
availability, and findability.

As Above

There are a whole bunch of reasons why these surveys have come up with these sort of results. One, which is certainly relevant for me, is often whatever I am searching for , I don’t know of any
significant brands. I want to see whatever brands are available or more simply I have not the slightest idea of what I am looking for. At this very moment I have no doubt there will be a whole raft of consumers out there looking for Wifi Connected Swim suits so they can remain
connected whilst sunning themselves in the Mediterranean Sea and are not separated from the internet . They wont know who makes them and certainly not the brands. No, they don’t exist (-yet and yes I have checked ) but I think it works as an illustration.

Within our own industry (ie Party) a major latex balloon manufacturer’s brand has dominated the market for many years. And for good reason. They produce an excellent product and they invested heavily in marketing. However, a change happened during Covid (yes its that word again) . Supply disruption occurred. The market needed product , as there was huge demand and they found alternatives . The alternatives were found to be more than acceptable replacements . The consequence was a major distillation of the brand and a huge increase in product choice.

This effect migrated into other party products. Retailers reliant upon major brands could not get the stock they wanted started to look at other Brands who had stock. Hey Presto ! They suddenly discovered that there were other good brands out there and the product was just as good and sold as well if not better.

As above

I am not knocking good brands. I have spent most of my working life trying promote brands in various market places . My point is that I think ‘professional’ consumers i.e. `buyers should re-evaluate the brands they rely on and ask themselves are they really getting value for money . The amateur buyer i.e. the end consumer , according to the research seems to know better ……

The Power of Colours….Or is Beige really that Exciting ?

Posted on by markybrett

Julia is an Artist. I have spent the major part of my working life in the Party Industry. Anybody who may know me would not say I was someone really into Colour. Anybody who knows me well, would same exactly the same .

Yet…..On so many levels , I am mesmerised by colour. It plays such a monumental part in all our lives , eating, dressing, transport, health through fitness, travel, education to politics, science and religion. Colours are a predominate factor in all our lives, for good or bad .

It dresses you, envelopes you, invites you, beguiles, encourages, politicises, hurts, invigorates, creates, good or evil, you cannot avoid it.

Since I started posting I have assiduously avoided making any sales pitches. This once, I make no apology for a little pitch. Latex Occidental ( A Mexican Latex Balloon manufacturer – the largest in the World -Brand Globos Payaso) is kicking off 2022 with a programme called the The Power of Colours.

Initially, I thought Nice idea ….The more I thought about it , the stronger the phrase became until I thought that’s a great idea . I suspect we are all guilty for taking colours for granted . The concept is so much part of our daily lives that we rarely think about it in its entirety .

Courtesy GRAF1X.com

Party Product is all about Colour. It may seem strange but there was a time when most disposable tableware was white and white only . Latex balloon manufacturers may have made maybe ten, tops twelve colours. Foil balloon makers started with silver only (came from the base colour of Mylar- I think). Drinking straws where white . Now, Colour is (obviously to some) party paramount. There are loads of influences, the fashion industry, home decor but much of what happens today , within our market comes from Social Media. This has a huge impact especially within areas such as party decor and balloon decoration. During the last two years, colours that have often lay dormant within suppliers warehouses suddenly burst into favour. When asked what was trending in their area, one of my very knowledgeable clients responded succinctly ….

Various shades of poo !

As a consequence……

Beige came of Age !

Me 😁 January 2022

Everything that you can see in the world around you presents itself to your eyes only as an an arrangement of different colours

John Ruskin

Colours express the main psychic functions of man

Carl Jung

The Pantone Institute, the ‘go to’ organisation for world wide colour specifications since the early 1960’s , forecast the ‘colour of the year’ . This process is carried out by bringing together colour specialists from throughout the world as to what they think will be the trend for the coming year . 2022 it is Very Peri. A colour specifically invented and inspired from A Happy Periwinkle. Or in a more simplistic manner,is a new shade of Blue.

Within the Party Market, we are very fortunate in being immersed in the world of colour. It has spawned a wealth of creativity, especially within the world of Balloon Decorating. At the very same time, more especially over the last 2 years, there is much heightened consumer awareness of the vast number of colour combinations available. It is generally accepted that there are about 10 million colours that the human eye can detect . That’s a heck of a lot (in this case heck is a lot bigger than vast) of possible combinations.

Courtesy of Latex Occidental (Globos Payaso) -Susana Guerrero

Despite the all pervasiveness of colour there has been little scientific research into its impacts. Or rather there has been quite a bit but little agreement. Aristotle (not our dog in this instance) made the first acknowledgment of colour , however his conclusion was that colour derived from God. White being good and black evil. I think whatever your belief you would comfortably find the problem with that thesis .

Sir Isaac Newton, by analysing sunlight through prisms isolated the colours of the rainbow. Which is a bit handy as the following possibility, would made the world a very different place ..

…if the Sun’s Light consisted of but one sort of Rays, there would be but one Colour in the whole World…

Sir Isaac Newton -Optics

Which conclusively illustrates that Beige is incredibly exciting …..

For those of us, albeit in a very small way, who have the opportunity to influence the use of colour in their working practices, should think about phrase of the power of colours, as apposed to the use of colours. Many probably do it anyway without actually saying it. Like many things saying it out aloud often gives it a stronger impact . But I still be wary about shouting out that beige is exciting ….

Shortages…..what do you mean? We are not in the middle of a bloody war !

Posted on by markybrett
National archives (Note: Fires not Fries)

Toilet rolls …No. Sanitisers ….No. Pasta….No. Chips….Yes.

Now before you start calling your local chippy and Pre-Ordering your month’s requirements or buying a new freezer to keep a years worth of frozen chips, it is not the tasty sort we are talking about.

Jaguar Land Rover, Ford, Volkswagen, Tesla to name but a few are cutting back on production because there is a shortage of semi conductor chips that are used in modern day vehicles. This has come about because during the pandemic there was a huge drop in demand from the automotive industry so chip makers switched to chips for laptops, electronic gadgets, and mobile devices etc as the demand spiralled .

Yet this is just the tip of a veritable iceberg. Just go into your local supermarkets, and look carefully at the shelves, you will start to see a lot of stuff missing . Construction materials , medicines, bikes, and many food products are just a growing list of products that are going to be hard to get over the next six months .

The construction materials shortage has impacted self builders, renovators and DIYers, and further problems are expected

Jack Woodfield Homebuilding & Renovating

There is currently a global shortage of raw material shortages, stemming from global demand and other external factors (including the slowdown and in some instances, factory closures, outside the UK), which continues to constrain production of certain products, such as insulation, paints and adhesives, as well as packaging for products.

Jack Woodfield Homebuilding & Renovating

Samsung warns chip crisis could lead to shortage in TVs and home gadgets

Samsung’s chip division saw profits drop after it had to close vital US factories in February James Cook ,Telegraph April 2021

A combination of covid, major supply chain disruption , demand changes , cost and organisational issues within world shipping have created that oft used phrase a perfect storm.

What may come as a little bit of a surprise to some (but not perhaps those within our own industry ) is that you may not be able to not be able to pop into your local Party store , or your favourite party web site and buy the latex balloon of your dream. The worlds latex balloon manufactures are being faced with exactly the same problems as that of rest of worlds supply chain.

  • Extraordinary demand (throughout Covid)
  • Shortages of raw materials
  • Manufacturing limitations due to covid restrictions
  • Shipping disruptions

The following is an an extract from a statement put out by the Balloon Council of America (Organisation representing major Latex Balloon Manufacturers in the Americas.)

Industry Update: Growth and Supply Chain Impact
It has been over a year since the pandemic began impacting our lives and business. As leaders in the balloon
community, it is important that we address the disruptions in the supply chain that the industry continues to
experience.
Although we are shipping large quantities of balloons, we have seen a marked increase in demand and the reality
is COVID-19 continues to impact all segments of our industry. Some of the challenges that we faced early on
continue to cause disruptions and impact the overall business.
• COVID-19 has continued to impact employees. Safety is essential. In many companies, new work rules,
social distancing, and physical barriers have been necessary to ensure a safe work environment and these
changes usually mean a reduction of efficiency and output. We have also faced challenges in finding and
retaining employees during these challenging times.
• Balloons are an element of a global supply chain, and many suppliers, both here in the U.S. and overseas
that we don’t control, have been similarly hit, impacting their ability to deliver raw materials or services.
This has been an ongoing issue in the past year.
• The whole supply chain, including freight companies, continues to struggle to operate efficiently and has
not been as predictable pre-COVID-19.
We know this is frustrating for balloon buyers at all levels. Manufacturers, related products suppliers, and
distributors are doing everything in our power to ramp up volume and responsiveness. TBC members are trying
hard to control the things we can, such as increasing production capacity, asking our employees to work overtime
and recruiting additional workers.
It will take more time for the supply chain to reset but we are tirelessly working to achieve our goal to return to
pre-COVID-19 service levels as quickly as we are able.
The global vaccination effort currently underway offers a beacon of hope that a return to normality is a possibility
in the not-so-distant future. That said, every day we are hearing stories about new variants that may or may not
respond to the existing vaccines. Few expected the pandemic would be this severe for this long, and none of us can
really project when its impact to industry will be over.
Balloons have brought joy to many people throughout the pandemic. As an industry, we are committed to doing
everything possible to get business back to pre-COVID-19 service levels. We are all working to make that day come
soon, and our teams won’t be satisfied until we achieve that.
Thank you on behalf of all the manufacturers and distributors who are TBC members for your patience and
understanding during these challenging times.

I make no apologies about the length of this specific extract as hopefully it will be of interest to the odd reader who is involved within the party industry and it would be remiss of me if I did not highlight these problems, particular as this product has put food on the plates in our household for many years.

Moreover, these issues are the very same (or similar) facing the entire supply chain in many product areas.

Most consumers wont even notice , or rather they may have difficulty in getting their brand , but there will be an alternative. Yet higher up the supply chain, the pain will be greater. Because of the way the supply chain operates in most markets, it is just not that straightforward in finding another supplier.

What does of course happen when supply dips , and demand remains constant or increases then so do prices.

Yet we are not at war. Well maybe we are in a sense, of all trying to fight a virus, which is complex enough but then putting into the mix the complexities of world trade, there is a inevitably about the impact of the supply of goods and services. Despite this ‘inevitability’ , none of us actually know what is going to happen from day to day . So if you cant get exactly what you want today, but you want exactly what you want, hang on a bit and you will probably get it. If you don’t want to wait buy something else.

The Resilience of the Humble Toy Balloon….

Posted on by markybrett

Lord and Lady Latex, are titles that have not been bequeathed by Political benefactors, or an obsequious senior Civil Servant but by a friend who has also spent much of their working life within the same industry, and felt that for most of the time he had known Julia and I, we were flogging the odd latex balloon or two. The emphasis being on latex , which is also relevant to the context of this post.

I need to indulge a little and talk briefly about my working past as it will , hopefully, help to illustrate what I am going to say.

Travel back a long way, to a time when Mylar (foil) balloons did not exist , before Balloon Decorating started , pre huge colour ranges, and multiple sizes, to a time when the humble Toy Balloon was considered thus… Just a Toy. I was brought up with them. I was surrounded by them , not literally as I rarely saw one in my youth,almost certainly never in the house, but metaphorically. My parents lived and died Latex Balloons. Sounds quite odd and dark, but it is a lot simpler than that. They were involved in the manufacturing and selling of ‘Toy Balloons’. They was wat put bread on plate , wood in fire and roof over ‘ead…as Dickens may have said but didn’t, unless he had spent a lot of time in Yorkshire and didn’t tell anyone.

Even before working in the business I was often taken to trade fairs (oh yes that was a proper holiday). I participated in the Nuremberg Toy Fair before I left school. What I am trying to say is that I have experienced many an economic cycle and a myriad of unfortunate events that would have otherwise destroyed the market for lesser product.

From the miners strike in the early seventies, the oil crisis mid seventies, and rampant inflation(edging to 26%)recession in the early eighties, recession in the nineties, to the banking crisis and finally our present covid conditions, nothing has dampened the demand for the humble latex balloon. During the Oil crisis in the mid seventies in the UK , there was a three day working week. I can very clearly remember at the years first trade show everyone doubling their orders. During massive inflation , having to increase our prices by over 20% being told by customers they wanted a bigger increase(not really anything to do with the demand for balloons , a rather nuanced commercial input. However, the customer was not concerned that it would stop the consumer buying). The vicious nasty little bug that cowers all before it cannot dampen the enthusiasm for the The Toy Balloon. I would go as far as to say it has only increased it. During this crisis, it would not be out of order to add it to the list(at least in the UK) of toilet rolls, pasta, bicycles, and puppies . Once again it defies all expectations.

In The early Nineties this crept back up to 15%…

Now , I must wave a red flag to any Lockdown Entrepreneurs who are thinking …aah hah There’s a few bob to be made here ….the market is not short of supply . There are plenty of manufacturers and the market is very aggressive. By dint of the product’s durability, it has already gone the distance of attracting entrepreneurs . So back off!

The latex balloon is no longer just a Toy. It is a product with many homes, backgrounds to corporate events , decorating major sporting occasions , weddings, key celebrations, lifestyle enhancer…..the list goes on. Take a peek on Instagram and Pinterest to see how balloons are used now. Consequently, especially in the UK you would rarely find Latex balloons on sale in a Toy Shop. This differs to a degree in the rest of Europe. Twenty five years ago, the go to retail outlet for the humble balloon was a toy shop, but ironically it got too complicated for the toy industry . Ranges grew like Topsy and I think they took the view that to do it properly took too much space. And they were probably right . Yet I still maintain that whilst a single sku of bog standard toy balloons ,may not return as much cash, it will take return far more % profit per square inch than nearly anything else in a toy store.

So what is the allure of this simple object ? It is not without its opponents. Over the years it has had confrontations with the farming lobby, and environmentalists. Even today many think that latex balloons are made of plastic. Clue in title, please err ‘….Latex. There are those that are Balloon Phobic. I have encountered customers who would not step onto an exhibition stand as they are frightened of balloons. Not many, I hasten to add, I can only remember two . But there again I suppose I would not meet them all as they wouldn’t have come anywhere near me .

There are few that would walk into a room full of balloons, and not raise a smile. After a short while that same person, child or adult, would defer to childhood, and want to play with them, even if it is a sophisticated decoration. Maybe because they float or have a life of their own they subconsciously imbue a feeling hope, happiness and maybe even a touch of freedom. I have a sneaky feeling this is a peculiarly UK thing (and North America) . I am not sure this has translated to such a degree into mainland Europe, though I don’t see why it wont. Balloonwise , we are ahead of the game. A customer of mine (who is very close to the action on this one ) said he saw this coming sometime ago. He saw a movement to people playing (in a craft way) but suspected it would take another couple years to go mainstream. In his opinion , Covid has only hastened the timeline.

A toy it may no longer just be. Its development into adulthood has only just fortified its resilience and maintained its humility .