Unsurprisingly, the news out of the blue from Honda last week, that they are cutting around a quarter of their dealer network, has not gone without comment.

Dealers have been discussing in online forums and today we hear from Service Dealer founder Chris Biddle, who takes us back to the beginning for Honda lawn and garden in the UK, recalling their launch at the Mostpur Park IOG show in 1978. Chris offers a historical perspective on the development of Honda as a major player in the garden equipment sector in this country and reflects on the disappointment of dealers who have shown loyalty to the brand over many years.

Reading about the impact that Honda made with their first appearance at that show in the late 70s, made me realise just how integral a part of our sector our trade shows and exhibitions truly are - or at least have been until now. What will their standing be in years to come? Has their enforced absence this year, gone some way to diminishing the importance they play in the industry's calendar?

Immediate future for trade shows

This was one of the subjects discussed in another group video call held by Service Dealer this week, once again with senior representatives of manufacturers, business service suppliers and trade associations.

With last week's announcements that LAMMA had pushed back their show from January to May and SALTEX were consulting visitors over their opinions on show timings, it was a topical subject to consider.

The consensus amongst those on the call was that it was of course only right that LAMMA had delayed - and right that SALTEX might be paving the way to potentially change their scheduling. However, it was thought that probably LAMMA hadn't actually moved deeper enough into the year, with May still appearing to be somewhat risky timing. In terms of SALTEX, there was talk that if organisers were to consider reverting to their original November date, that might be prudent.

It was the question over the appetite of their customers to attend a trade show in first half of next year which was one of the primary concerns for these suppliers. Will punters be prepared to turn up to a crowded, indoors exhibition hall?

The other primary concern of course, is for the health and safety of their own teams and for their customers. To guarantee this (if we're not all fully vaccinated!), will mean many procedures will need to be place - which will frankly, diminish the quality of the show.

It was said how it's hard enough to hear people speak on those busy show-floors at the best of times, let alone when everyone is wearing masks. Stands do tend to get swamped at peak hours, so implementing a one-way entrance and exit system from the stand, would be impractical to police. And a concept that had apparently been discussed by show organisers, of exhibitors pre-arranging visitor appointment times to meet with customers, simply did not hold an appeal.

As one manufacturer said, they are not as interested in speaking to people they already know at a show, as they are picking up brand new contacts who may not have heard of them before. Which by definition, can't be achieved via appointment.

There's no question that many manufacturers in principal want to support shows. Reaching a relevant, engaged audience directly, is of course of value. There were questions raised however, about whether the events of 2020 have changed the established landscape? Will the big boys feel the need to return if they have established their own ways of showing off their kit to their customers and dealers? There's certainly a question mark over this - although it was agreed that certainly so far, not much enthusiasm had been shown by audiences in our sector for virtual shows.

The feelings about live trade events next year seemed most neatly summed up by the comment, "I'd rather wait and have a good show, than rush and have a bad one."

Disintermediation

The conversation then turned to an area we've been discussing on here and with dealers lately, of disintermediation.

Service Dealer fed back to the manufacturers and suppliers on the call, the concerns we've heard from members of the network recently, that some feel they have been losing sales of certain items, mostly domestic, cordless products, to manufacturers selling direct via their own websites. Service Dealer described a restlessness which we'd picked up from some readers, regarding certain practices seen employed online.

In a frank discussion it was proposed to us that it's an inevitability that consumer expectations of the 'reachability' of the brands they buy, is changing. Dealers need to accept that lockdown has altered home consumers' attitudes and habits, and many now want to order online and have items delivered direct to their homes - as we all do in other areas of our lives.

We were told consumers are in charge of the buying procedure and are free to choose where they spend their money.

Dealers will therefore need to consider their manufacturer partners even more carefully in the future. Too many dealers are perhaps spreading themselves too thin, it was suggested, with a concentration on fewer brands required. Dealers will inevitably push back against the brands who don't support them and settle on the ones who do.

There was an acknowledgement that margins are essential and the network needs to remain profitable in order to maintain servicing facilities. It was suggested that dealers need to always emphasise their point of difference which they can offer consumers over the online alternatives.

It was said that dealers are either adding value or adding cost. If they don't accentuate that value they can add, they will be cut out of the chain by consumers. More so than ever, dealers should be positioning themselves as the high-end experts within their community.

After our discussion this week, it seems inarguable that with the changing of technology the landscape for garden machinery dealers specifically, is evolving. A case could be made that for certain types of products, it is diminishing.

Tough decisions will need to be faced therefore, about what brands continue to offer viable profitability for individual dealerships - and whether diversification down previously unexplored lines, could be a potential way forward.

On that subject, if any readers would like input into a further discussion on diversification and would be interested in joining our dealer panel, please just drop me an email.