September 10, 2018
What clients really want
More than ever before, clients face the challenges of surplus, unsold stock or excess inventory, or simply are interested in ROI. Fortunately, there are ways of creating extra value for clients and business partners – with or without excess stock challenges. There has not been a better time for Corporate Trade.
More than ever before, clients face the challenges of surplus, unsold stock or excess inventory, or simply are interested in ROI. Fortunately, there are ways of creating extra value for clients and business partners – with or without excess stock challenges. There hasn’t been a better time for Corporate Trade.
The greatest opportunity for Active International is to work with our clients to combine their challenges and commercial objectives while creating financial benefits for their business. In Australia, the competition in Corporate Trade industry is strong but we are in a position to lead the sector, remain at the forefront of our competitors continuing to offer un-parelled expertise, resources on ground and global scale with trade solutions that deliver real results.
We know that companies will always be interested in generating new or incremental revenue and maximise their returns on underperforming or obsolete assets. Particularly in our market we have started to see change where more and more clients along with their media agencies are more open to consider partnering with us, and often choose to realise the potential of Corporate Trade in their business strategy.
With an extensive client portfolio, including local and global brands across the FMCG, Retail, and Automotive categories we have a lot of success stories to tell.
Corporate Trade’s unique ways
Corporate Trade of today offers diversified client solutions. A good example is offering a solution to a client’s excess stock challenge.
Real client – Our client had delisted stock from a large retailer. They needed a solution that minimised the loss to the business and an alternate distribution channel to restore value.
To solve the client’s problem, we purchased the stock at its original listed price with Trade Credit. The Trade Credit issued was three times the wholesale stock price. We then identified with the client areas of their procurement spend to utilise their Trade Credit which best fitted with their business requirements.
Real results – By partnering with Active, the major packaged food brand generated incremental spend allowing them to increase their marketing budget and trial new media channels while realising the full value for the delisted product, which otherwise would have been a cash loss to their business.
The exciting part was that they were able to use their Trade Credit to trial new media, generating additional value back to the business. The client was able to utilise their excess stock to part-fund their marketing and media budget to increase their brand awareness and ROI. It was a win-win.
No excess stock – no problem
There is always the opportunity for clients who don’t have excess stock problems to guarantee ROI from their media spend. Clients face the constant challenge of finding new business routes and new customers; Corporate Trade can guarantee ROI for the marketing spend prior to the launch of a new product or campaign.
For example, Active’s Media Cross Purchase solution involves trading part of the clients existing media budget with Active (via the media agency). We then committed a proportion of this spend back in purchases of products or services. This solution delivers an increase in product/service sales, a better return for existing media investment and new distribution channels or customers for their business.
Retail case studies of the Cross Purchase solution
Real client – a leading Australian retailer wanted to expand their Gift Card sales into new channels but did not have the relationships in place. They needed a solution that increased Gift Card sales to new corporate clientele and partners.
Active purchased the Gift Cards at full face value and leveraged our trading relationships across a variety of industries such as media and travel to expand the distribution of the Gift Cards.
In exchange, the retailer agreed to purchase media as planned and priced by its agency through Active.
Real results– the client received increased revenue from the immediate purchase of the Gift Cards and increased brand awareness as the Gift Cards got sold into new channels and received incremental business to their store with the Gift Card redemptions.
Real client – A white goods retailer has been trading with Active International in overseas markets, which lead to the client considering local corporate trade opportunities with Active International in Australia. There was no excess stock issue which needed solving, but the client wanted to guarantee ROI from its first line or seconds products.
We found a demand for first line products from clients and suppliers which would not impact on the client’s wholesale or retail business as well as a client-approved clearance channel for second’s products.
The client and their media agency included Active on their annual planning to ensure there were media opportunities accessible.
Real results –The manufacturer received 25% of the media placed back in cash purchases guaranteed by Active. Client approved distribution channels were used to sell the purchased products and In addition to the guaranteed ROI we were able to offer the client access to a client-approved clearance channel for their second’s products.
Whether it is eliminating excess stock, increasing media spend or guarantee new or incremental sales of products and services, clients have a lot to benefit from Corporate Trade.
We are in a strong position right now in Australia and have been leading the sector globally for the past three decades. Our aim is to continue to educate our clients and business partners on the benefits of our solutions, and deliver measurable value to our clients and trading partners. We celebrate our clients’ successes and constantly prove that Corporate Trade is a smart way of doing business today.