Last week I mentioned a statistic I’d heard, suggesting that 85% of the kitchens sold in the UK each year are sold by the big brands – Wren, Magnet, B&Q, etc.
And I had some interesting feedback, with several people forthright in their views as to why the independents’ market share is so small.
However, there’s a second part to this story, which is even more interesting.
While independents only have something like a 15% share of the kitchens sold, they enjoy a 50% share of the kitchen industry revenues.
So, the simple maths tells us:
Independent kitchen retailers make the same amount in revenue as the big chains, while serving far fewer customers.
Now, there’ll be some exceptions, but by and large, this tells us that independent retailers appeal to the ‘money end’ of the market.
Without exaggerating, this is perhaps one of the most important facts that KBB retailers need to know in 2021 and beyond.
Because unless you’re clear on exactly who you’re targeting, the chances of your marketing message hitting them right between the eyes diminishes quickly.
When you’re ‘marketing to money’, you need to appeal to a very different range of motivations to those of a price-driven customer.
There’s a useful parallel in the world of airlines:
The marketing that attracts the Economy passenger (centred around price) turns off the Business and First-class travellers (focused on the experience).
Get that wrong, and you’re not selling many seats in the front half of the plane.
And so it is in the world of KBB: unless you construct a compelling message for more affluent customers, you’ll always end up competing with the big sheds, and more often than not, losing out in a price war.
So, what exactly do you need to say to resonate with those higher-value customers?
This week we’re focusing on exactly that during The Big KBB Marketing Call. So, if you want to discover more about Attracting the Non-Price Buyer, join us on Zoom this Friday, 19th March, 11am–12pm. Click here to book your place for free.
It’s content, conversation and community – we hope to see you there.
