Serving professionals, Point CHR Distribution, branches from Cilam, implements a new commercial approach by circuit which constitutes real added value for the customers of the two companies and for end consumers. Drawing on a unique brand offering, on a new organization and reinforced resources, this strategy increases the coverage and visibility of brands in the six business centers of this distributor. In particular, it allows Point CHR Distribution to meet the needs of local businesses in full renewal with the health crisis.. Product innovations, highlights, advertising, are developed in CHR, in line with consumer trends.
Director of Point CHR Distribution for almost two years, Nicolas Lespine explains the levers of this strategy and displays his ambitions for the company.
Meeting Leader : 100% subsidiary of Cilam, Point CHR Distribution is a wholesaler specializing in food products serving CHR and local retail professionals.. What link and what strategy unite you to Cilam? ?
Nicolas Lespine : The first vocation of Point CHR is indeed to market the products manufactured by Cilam outside GMS. The supermarket is managed by the La Cilam sales teams. Six strategic areas are at the heart of this company’s activity Point CHR : Local Commerce, Wholesalers and Resellers, Service Stations, Bakeries, Pastries and Ice Cream Parlors, Commercial Catering and Social Catering. Our product portfolio is therefore made up, among other things, of all the products of La Cilam.
You mention local commerce first. Is it because it is the most important activity for you and the one that offers the most potential? ?
This is my first activity in terms of turnover : 32% in 2020. It is also a major growth driver for Point CHR’s activity.. This relay was perhaps not sufficiently exploited in the past. Since my arrival, we have put in place promotional offers dedicated to local businesses.. We have also established partnerships with groups of traders who have recently been created., like Bout’iks or Noveo. These merchants come together under the same brand to improve their visibility and give themselves more weight in terms of purchasing. It’s interesting for us too. We see that the more and better we work with local businesses, the more rapidly the turnover in this activity evolves. As a result, as this is the most important strategic business area for us, these results enhance Point CHR’s entire activity.
In a city, with the pandemic, the return of consumers to local grocery stores promises to be lasting. Do you observe the same phenomenon in Reunion? ?
Completely. And we saw it in March : from the announcement of the first confinement, our local commerce activity has seen double-digit growth. People considered that they were taking less risks by going to local shops than to large shopping centers. This required us to provide local shops with the same offer as in supermarkets., because consumers wanted to find the same products. We have carried out in-depth work to enable local businesses to benefit from this transfer of customers.. So that they benefit in particular from the 20/80 rule which exists in supermarkets, namely that 20% of consumers are buyers of 80% of the products sold. The attraction for the neighborhood grocery store has not faded. These businesses were able to convince their new customers of the quality of their offers, as well as their seriousness in applying health safety rules. The boom in activity that I spoke of continues today.
At the helm of the company for almost two years, you have implemented a new commercial approach by channel. For what purpose and what does this new approach consist of? ?
Point CHR must work with six different activity centers. It must therefore adopt a strategy and communication with each of them if it wants to be able to meet the needs of its customers.. It is therefore necessary, beyond the products of Cilam, already the leader or co-leader for the most part in their market, to offer our customers products and sales supports specific to their business. In-depth work had already been carried out by the teams in place and previous management, but since my arrival we have developed our catalog of trading products on brands already known by the Reunionese in supermarkets. The goal is for them to be able to find these same brands in their local shops or service stations..
Point CHR is also fortunate to be able to market two Australine references in a format specific to CHR in 1L and 50 cl.. We even create and produce limited editions of the 1L reference four times a year.. The Marketing department does a superb job on producing the labels and some consumers enjoy collecting them. ! I also work with the La Cilam support teams, in particular their Supply Chain, to optimize my supplies on these references and ensure 0 shortages.
What new does this approach bring to points of sale and, Ultimately, to consumers ?
A commercial dynamic, something new on the shelves, you service. It’s essential for consumers. We must also allow our end customers to be assured of being able to find these products in a long-term manner on the shelves of their local businesses, for example.. The Cilam Marketing department allowed me to develop sales materials dedicated to my various clients : Turnkey Marketing Operations, poster supports, Sidewalk and Window Stops, stickers for Point CHR trucks, broader communication supports such as diaries, calendars, pens or even glasses. All these supports, in the colors of our brands, allow us to gain visibility and develop the image of Point CHR. This axis is new for my company, it's a turn. The final objective being to communicate on what Point CHR offers and, in fine, on what our clients can offer to end consumers.
The goal, it is therefore to increase the visibility of brands, to take advantage of their reputation in supermarkets to boost the offering in local shops and CHR ?
Visibility goes both ways. We sell very important brands in supermarkets, each very strong in its market. Local businesses obviously want these brands to meet the expectations of their customers.. But local shops, and the entire CHR network, represent, on their side, a superb showcase to promote Cilam products, especially its new features. New products that consumers then find in supermarkets..
Is this dynamic already paying off? ?
The year 2020 was, for the entire CHR network, a very difficult year due to the health crisis. The results on these strategic activities are therefore unfortunately at half mast over the year. But we knew, thanks to all these developments, get your head out of the water, thanks in particular to local commerce. The indicators are therefore green for the company and this remains encouraging for the months and years to come.. We are also starting to measure the impact of our communication since we have recorded new customer referrals in recent months..
I would also like to take advantage of this question to thank my entire sales team who have done an enormous amount of work throughout this crisis to ensure a permanent presence with our customers., while respecting barrier gestures. My six field salespeople and my sales assistant. The entire logistics team who ensured our deliveries, them too, during these difficult months : the two order pickers, the storekeeper, drivers and delivery assistants, all these people guided by the company’s Operations Manager.
Does this new approach require more resources?, has it changed your workforce and your organization ?
Of course, and it’s one of the aspects of my job that I like the most. Seeing my activity evolve and having to face, in a measured way, the means that go with it. As soon as I arrived at this position, I recruited a new Operations Manager, Nicolas Bege. He accompanied me, with his team, to structure our logistics organizations : overhaul of our tours, acquisition of new trucks and new handling equipment, recruitment of new drivers and delivery assistants. The Point CHR sales department is also constantly changing : new work organization at the secretariat level, hosted today by Annéa, recruitment of a new sales representative in the South zone, new sales supports to facilitate the work of salespeople. Point CHR also saw the arrival, for a few months, two alternating students : one on the logistics department and one on the sales department. They are a great help to our operation, and bring their new vision to our developments. In a few weeks we should set up afternoon tours to lighten our busy morning tours., and thus enable us to respond to the growth of our activity.
Is this approach accompanied by advice to customers to increase their sales?, for example by the most efficient implementation of products ?
Most are looking for advice on how to build and structure their shelves, to highlight the products. In local commerce, we meet people from mass distribution. They know sales techniques. On the other hand, many do not have this training. We follow a file of around 600 active customers and, responding more specifically to this request is difficult for us. Today our response is limited to participating in settlements when we can., but a merchandising service would require an organization that we do not have at the moment. However, it has already happened that we need a shelf plan for local commerce. We then rely on the Cilam support teams.
Your product portfolio, local brands of the Cilam in particular, is unbeatable, without equivalent on the island. What does your offer consist of today? ?
We distribute all Cilam brands. Australine, with specific references to CHR. many, Diego, Kalao, an increasingly well-known brand in Reunion Island and which we support through significant communication efforts. Cadet Roussel, Candia, Lovelac, Yoplait, Piton des Neiges, Creole Caress, Pilpa, without forgetting all the cheeses from the Fromagerie de Bourbon including Piton Maïdo and Brie Piton des Neiges.
You also have exclusive brands: what are they ?
Beyond these beautiful brands, we offer our customers products specific to their activities. Butter and cream under the Elle et Vire brand, particularly for catering and bakeries and pastries. Kafé Koulé coffee for local shops and service stations. Cheeses under the Ile de France and Valmartin brands among others. Flour, sugar, chocolate powder for bakeries and pastries, etc.
Do you plan to extend this offer to other food products? ?
We wish to continue our developments to provide more services to our customers. But we must measure our growth, because like I said, It’s a pleasure to follow this evolution, but we must be able to support it in terms of human and material resources, and this must be done carefully.
Are you a leader in the CHR markets? ? Where are you strongest ?
The strong Cilam brands that Point CHR distributes ensure us a privileged place with our customers. E products&V are known and recognized by professionals. But our competitors were able to very quickly expand their product portfolio, and thus meet the very broad needs of the CHR network. We must, to be able to live up to our ambitions, search for new areas of growth, especially on fresh produce.
The CHR is evolving, takeaway points, For example, keep multiplying. What are the most promising sectors today in CHR? ?
Local commerce, as I explained, has evolved significantly in recent months.
Our sales team and I are attentive to this strategic activity for my company and we are putting in place efforts to support them on a daily basis. : new product, promotional dynamics, POS. End consumers expect from us, distributor and customer, so that we can provide them with the same services and communication in their local business. Beyond the listening and proximity provided by this essential network, we all work to provide a quality of products and services at least equivalent to the GMS..
Point CHR Distribution is 30 years old this year. What are your ambitions for the company and how do you see its future? ?
I've been on this job for almost two years., it’s ultimately short compared to these 30 years. Point CHR has been present alongside its customers for a long time now and the teams in place have always been seeking to improve products and services.. A court terme, I would like to support all the transfer projects implemented in our services since my arrival. We must stabilize our new organization and thus make it more efficient. In the medium term, Point CHR will also have to follow the evolution of the market, including e-commerce. I hope to soon be able to announce to my customers the setting up of a website allowing online orders. In the years to come, we will need to continue our product development to always better respond to the demands of our customers, our field support with the implementation of sales support tools and supports, and why not our logistics organization to further support these developments.
Can we summarize your action by saying that it is based on the following levers?: availability, proximity, visibility and quality ?
In the positions I have held, I have always acted on three levers : the human, business and management. The human, oui, it’s availability and proximity. With my clients, but also with my salespeople and my teams. The commercial relationship, before talking business, it’s the quality of a contact, from a listening. In my opinion, this is the most important. After, we can talk about the products, commercial and promotional dynamics, of the POS that we can offer. It’s a strength to be part of the Cilam group. We benefit from recognized product quality, which also applies to the external premium brands that we market. We benefit from the notoriety of all these brands and we pass it on to our customers. They are reassured. Finally the management, it is the assurance for our customers that they can count on a service, on solid organization and management of supply, avoiding stock shortages. I think that, when we listen and provide solutions on these three levers of action, we hold one of the keys to success.
The Point CHR Distribution team
Sales force :
6 salespeople
1 commercial secretary
1 work-study student in the sales department
Logistics :
12 chauffeurs
5 delivery assistants
2 order pickers
1 storekeeper
1 apprentice in logistics
1 operations manager
Great :
9 trucks, including a vehicle specialized in ice cream delivery
