Country Management: Explained

Our Thoughts

11/04/2023 by The Red Tree

The Red Tree has operated our unique Country Management Programme for multiple brands since the business started in 2010. Country Management is ideally suited to an international brand seeking local market expertise and support. It is a route open to brands entering the UK market for the first time. It also suits those already in the UK but dissatisfied with their current operating model.

Country Management functions as an alternative to the traditional model of market entry. In that model, an international brand works with a local distributor. The distribution model, particularly in skincare, has become increasingly difficult. Retailers now require higher margins. This squeezes the slice of margin left for the distributor and brand. In addition, many brands carry scars from bad experiences with distributors in other markets. Some distributors pay little attention to the brand after the initial flurry of sell-in activity. Others let products end up in less than desirable sales channels. Country Management also appeals to international brands that do not want to set up a UK office. Many also prefer not to employ their own staff in the market, due to the cost, tax and legal implications involved.

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Upon engagement as UK Country Manager, The Red Tree develops a tailored market strategy. This highly important preparatory work underpins a strong foundation for the brand's entry and, or continued operation, in the UK market. It builds a well-thought-out blueprint for how to achieve agreed business goals. During the implementation phase of Country Management, The Red Tree leads on securing retailers, leveraging our strong relationships with world-class retailers such as Harrods, Space NK, Harvey Nichols, Selfridges, Sephora and The Hut Group. The Red Tree takes a proactive role in business development by nurturing strong brand and retailer relationships. Once listed, we work to optimise the brand's launch calendar to align with retailer marketing activity and campaigns. Our focus is on driving retail sales. If needed, The Red Tree is also adept at recruiting and managing highly motivated, well trained retail sales professionals to operate in the bricks and mortar environment.

There is no “one size fits all” approach to Country Management. Instead, The Red Tree tailors the model to suit each brand’s requirements. Essentially, we can do as much or as little as required across marketing, operational and sales functions. We work with an array of trusted third party logistics providers, who can fulfil storage and shipment of orders. Alternatively, we can work alongside the brand’s existing logistics function, if this is already established in the UK. We will also oversee and manage all UK functions, such as appointed PR and logistics providers, if required to do so.

Country Management truly is a partnership between The Red Tree and the brand. The Red Tree works hand in hand with the brand’s team to ensure the brand’s strategic vision is upheld and implemented to meet agreed strategic objectives. We become the brand’s team in the UK, working collaboratively with our brand partners through frequent and regular contact. We will also act in an advisory capacity across all areas of the business, as and when requested. Ultimately, our purpose is to build your brand in the UK and Europe, and in doing so, build long-term relationships with you, our brand partner.