Recessions, pandemics, wars and politics. Businesses are continually vulnerable to changes in the economy for a variety of reasons, and even the largest businesses aren’t immune to failure, cutbacks and downscaling. It is perhaps then understandable why retailers are beginning to shine a spotlight on the strength and stability of their suppliers to mitigate the risks of having empty shelves – both physically and virtually.
Private equity investment is a sign that a business offers stability and reliability, which in turn can provide reassurance to trade customers (and licensors) regarding a supplier’s ability to fulfil commitments and deliver consistent quality in the long term.
There are also a number of extra benefits that retailers can enjoy by partnering with businesses like Paladone, who are recognised as one of the UK’s fastest growing private-equity backed businesses.
Increased Resources
Private equity backing injects capital into a company which enables it to expand its operations, invest in design, innovation and development, and improve its products. This increased financial strength can lead to better quality products, more efficient logistics, better environmental credentials and enhanced customer service standards.
Expanded Product Offerings
With access to additional capital producers of branded merchandise and gifts can diversify their product offerings, develop new lines, and obtain new and exciting licenses. This provides retailers with a broader range of branded products and options to choose for their portfolio, and the resulting increased diversity of products on offer to consumers leads to increased sales and stronger revenues.
Improved Efficiency and Operations
When investors inject capital into a business, it is usually accompanied by a wealth of operational expertise and strategic guidance in the relevant market – which helps to safeguard and grow that initial investment. And this strategy also brings a wealth of benefit to partner businesses through streamlined processes, shorter turnaround times, optimised supply chain, reduced costs, better service and improved overall efficiency.
Enhanced Market Presence
The goal of private equity investment is growth. When a ‘backed’ business expands, it increases its market share and brand loyalty. In turn, consumers will engage more with a more visible and popular brand in terms of their buying decisions – all to the benefit of both retailers and licensors.
Access to New Markets
Growth also allows expansion into new and untapped markets in different geographic regions or industry segments. Paladone’s recent acquisition of WeCool Toys has opened up new opportunities for retailers to access previously untouched global and domestic markets, and benefit from the synergies created by entering complementary industries.
Dealing with safe, stable, and resilient suppliers is crucial for retailers, especially in the modern, volatile, and ever-changing economic landscape. Private equity investment signals reliability, helping retailers to mitigate risks and ensure consistent product availability for their customers. Partnering with Paladone offers numerous benefits because investment brings increased resources for innovation and development resulting in expanded product offerings, improved efficiency and enhanced global market presence. In such a competitive marketplace, partnering with Paladone can give a retailer (at least) one less problem to worry about.
