Spinoff Procurement Syndicate is a group of independent partners - classic retailers and distributors with own staff / offices / warehouses / training premises/ retail chains / points of sale / budget in over 80 countries that ensures rather high united purchasing volume. It operates all over the world and focuses on purchasing anti-aging products by private retail brands with high margin and USP. The Syndicate sells through all possible distribution channels offline as well as online. It has a coordinating center in Rome, Italy which serves as the docking station for the centralized procurement process, meetings and training. Its team is involved in brands selection, standardization and coordination of workflow between Syndicate Members and brand owners. The company also has the centralized office and warehouse in Nuremberg, Germany. There is a production company in which the management of Spinoff owns a stake. It is a manufacturer of high-tech customized cult in-ear monitors from precious metals. Spinoff management. There is also a big logistic hub in Bulgaria for import-export of goods to the European Union and vice versa at the convenience of brands and partners.
Syndicated Procurement (more detailed information you can find in Wikipedia by the link) is a rather standard type of classic purchasing, applied for years by large building and automotive corporations, construction companies or governmental institutions that decide to combine their financial sources to purchase certain standardized products (e.g. spare parts, reinforcement concrete, windows, lamps, etc.) in order to additionally receive better purchasing discounts based on large volumes and reduce the price for combined orders.
German automobile manufacturers such as BMW AG, Daimler AG and Volkswagen AG, that often procure steel or various goods and materials as combined purchasing power, could be a good example of Syndicated Procurement. As for governmental authorities, a good example could be the Syndicated Procurement of computers in early 2010, when New Zealand’s Ministry of Social Development combined forces with other New Zealand government agencies. In their turn, when the building firms and contractors in Australia started to use Syndicated Procurement to purchase building materials, the procurement rounds have yielded price reductions of between 30% and 45%. Such a concept was adapted by Spinoff Syndicate and adjusted for private retail needs in order to reach the following :
- Coordination of purchasing;
- Multiple channels of distribution;
- High level of physical and financial resources;
- Global reach and coverage of most markets;
- Big bulk purchase and low purchasing price;
- 100% distribution exclusivity;
- Multiple compensations in case of the private retail brand exit.
Unlike the classic model of scattered purchase, where different distributors have different discounts and cannot count on favorable conditions, the Syndicated Procurement allows Members of Spinoff Syndicate to keep all conditions and discounts at the same level, avoid any cross-border selling, dumping and luring customers between Members of our Syndicate. This helps to coordinate all business so that it remains fair, transparent, and profitable. Due to such a synergy effect, all Syndicate Members are considered by a brand as one single group with branches in different countries.
First of all, Spinoff Syndicate Members are professional classic distributors that have vast experience in the distribution business and work with many international brands introducing new niche products and trends in the local markets. They could be literary divided into two groups but more often they can combine both.
The first group of Syndicate Members are focused on healthy/organic nutrition, food, drinks, sports supplements etc. They manage distribution through all online and offline channels of the mass market from HoReCa and big retailers such as supermarkets, department stores, convenience stores to private coffee/tea shops, organic shops, sports clubs, fitness centres and other niche stores.
The second group is focused on personal care and wellness products such as skin care products for the face, body and hair that can be either retail or professional cosmetics. They are more often have a medical degree and own businesses in personal care. Some of Syndicate Members own online and offline stores, spas, beauty salons, institutes, clinics, some resembling the entire network of 5+ stars hotel spas etc. They also manage all online and offline local cosmetic retail chains such as supermarkets, pharmacy & drug stores, department stores, direct selling, speciality stores, internet retailing, beauty salons etc.
Taking into account the confidentiality and cherish the time of all Syndicate Members, the detailed information about them is provided to each individual brand upon request, according to and only after the direct interest by the partner in this particular brand. If, after acquaintance with the brand, Syndicate Member is interested in the brand distribution, the centralized Procurement Department is ready to provide all the expanded profile on Syndicate Member to this brand i.e. the company name, contact details, annual sales volumes, brands references, local sales channels with which he works etc.
Fist and foremost, faced the challenge when a private retail brand is sold to MNC, we as distributors, joined our forces and created Syndicate to be able to secure exclusive distribution rights on private retail brands and receive compensation in case of brand's exit, excluding our losses. Mandatory, for the brands we work with, is the conclusion of a five-year exclusive distribution agreement with the possibility of prolongation for at least five years, subject to the fulfilment of the agreed annual purchase amount. In the event of losing the possibility to further distribute the brand, we have the right to receive compensation in the amount of 1 up to 2 brand’s annual purchasing volumes for the last year for each country in case of a sudden buyout by MNC. Secondly, when our independent distributors/retailers act as a single purchasing power and ensure the higher common purchasing volume, they are able to negotiate better terms of purchase for all the members such as distribution discounts. Moreover, having common terms, they avoid cross border selling issue as well as can share marketing costs.
SPINOFF is NOT any type of consultant or agent in any form. It is a Syndicate of classic distribution companies / independent retailers that makes consolidated procurement and BUYs products of private retail brands on CASH UPFRONT terms and, respectively, RISK with OWN money and reputation the SAME as the brand OWNER. For the convenience of Syndicate Members, SPINOFF has centralized Procurement Department to spin off the part of the procurement process when it is needed.
Spinoff Syndicated partners (independent retailers and distributors) interact with brands as single purchasing power and agree on general conditions like Minimal Purchasing Order for the first Year, Terms of Exclusivity, Distribution Prices and Discounts etc. The Syndicate buys anti-aging products that improve health inside and out and affect the aging process by slowing it down or reversing it. The procurement is always based on cash upfront terms. The Syndicate doesn’t make a centralized procurement through one single legal entity since it is very difficult in terms of organization, logistics, flat management etc. Each partner takes care of all local marketing, promotion and certification for the brand it distributes. Therefore, a direct one-to-one distribution agreement is concluded between the brand and each partner separately, which regulates the relationships and on the basis of which they conduct a procurement for each individual market. Every Syndicate member makes a separate purchase keeping up with all the agreed terms that are common for all. The general annual procurement volume of purchases by entire Syndicate is calculated in order to agree on certain additional beneficial conditions which may be associated with its increase and negotiated by the parties
Procurement Syndicate selects only those products by private retail brands that improve health and wellbeing of humanity inside and outside, helping customers “feel better - look better - live better”. Such brands could be literary divided into two main groups. The first group of brands includes deep tech healthy dietary and sports nutrition, organic food and drinks, desserts, supplements. The second group includes deep tech personal care and beauty products. For many years, we developed and distributed retail and professional skincare brands that include product+service such as Niance, premium Swiss skincare brand and Biopeptix, a professional skincare brand from Israel, whom we opened many new markets and made millions in sales. The portfolio of recently developed products could be found on the main page.
Syndicate selects the brands with different mapping adhering the main requirements as follows:
- Privately owned;
- A clear focus on anti-aging or best-aging products;
- Technological USP;
- High margin;
- Big potential market;
- Brand owners that are ready for our aggressive S&M strategy;
- Brand owners are not planning to sell the brand in the next 24 months.
The main source of SPINOFF income is the profit from the direct distribution of brands from a portfolio. Alomоst all Syndicate Members own or co-own distribution companies with the sales team, warehouses, and training facilities or additional side businesses. Taking into consideration that SPINOFF acts as the Syndicate, we earn due to special conditions on large volumes. Also, in some cases, Syndicate Members that distribute the particular brand, secure right to receive compensation in case of brand's exit. In addition, SPINOFF management is a shareholder of AURUM.AUDIO GmbH & Co. KG, the German audio jewellery manufacturer of in-ear protection systems and customized monitors from precious metals.
We do not offer any services, since we are a group of classic distributors that BUY anti-aging products from private retail brands globally on cash upfront terms and SELL them locally. Of course, upon request, we deal with certification and partially overtake marketing for brand launch that we share with the brand and agree in the distribution contract. If the product requires additional education, we can also make trainings locally, since all Syndicate Members have training facilities globally, as well as centralized training fascilities in our office in Rome, Italy.
WORK WITH BRANDS
The first step is a brand selection according to the main requirements (anti-aging properties, clear USP, high margin, strong marketing, the potential for fast sales, readiness to aggressive marketing). The centralized Procurement Department evaluate the new brands that appear on the market, make an assessment of whether they meet the basic requirements mentioned above. Afterwards, the brand is contacted directly by the centralized Procurement Department to schedule the intro call.
The centralized Procurement Department makes an intro call with the brand owner or representative to discuss main standard distribution terms, initial order, a minimum annual purchasing volume per country for signing the exclusive agreement, marketing and sales strategy. During the call, the parties agree on the markets open for exclusive distribution and exclude already occupied. During the Brand Lab Spinoff Syndicate requests all necessary information such as presentation, catalogue, price lists for precise evaluation.
Since the quality and USP is the most important thing to make a decision to move ahead, each brand, that is later selected to the portfolio, goes through the Brand Lab. It is the process of products testing by Spinoff Focus Group which includes the management of the centralized Procurement Department, MD, Technical Director and Technologist. Usually, the brand is asked for several full-sized business samples, more likely bestsellers in minimal quantities, that can give a clear understanding of the product USP and packaging quality, to one of the official addresses. Personal care products are tested for their performance in the first place from short to long term results. For food & beverage, of course, it is also important that they have healthy beneficial properties and, of course, great taste.
Upon the Brand Lab testing results and, if the brand is interesting and matches all the criteria of brand selection, as well as the price list is pre-evaluated as adequate, the brand is equally presented to all Syndicate Members.
For this reason, a professional publication called Dossier is made in two forms. The Open Dossier at the platform is presented to all partners. The closed so-called Secret Dossier (more extended version with additional sometimes sensitive infromation) is made for deeper presentation the new potential brand to interested partners. Afterwards, open markets and interested partners are checked on compliance, excluding occupied markets or with exclusive distributors at the brand's discretion.
After acquaintance with the dossier, prices and presentation based in Secret Dossier, a series of online negotiations and conferences are taking place. In accordance with the interest and feedback, Syndicate Members request business samples to present product locally and evaluate the market according to the trading standards. This is when the second stage of Brand Lab begins.
At this stage, the brand's products are provided to Syndicate Members upon their direct request and in accordance with their interests. The business samples are sent to choosen markets in order to test them locally by the partners and present to points of sale and in the retail chains. This helps to receive direct interest and feedback and plan the total volume of purchases for each local partner at each separate market. Brand Lab from 70+ markets is made on real customers and provides charge-free market assessment for a given brand, competitors and pricing evaluation, and recommendations from the partners on introducing the brand to each individual market, improving the product packaging, etc. This stage usually lasts up to 3-4 weeks.
After each interested partner checked the brand on the spot and is ready to start distribution, the parties agree on the personal meeting in Rome or Nuremberg or any of the agreed places. A centralized meeting of several interested partners and brand founders can also take place for general negotiations and coordination of general conditions for signing contracts in order to save time and financial resources.
Finally, after the identification of the interests and agree on all terms in each individual market, a one-to-one contract is signed, initial order and payment on cash upfront basis is made. Afterwards, the products are purchased and displayed on the local market, according to the terms of the signed Exclusive Distribution Agreement with each interested Syndicate Member. In the case of exclusivity, the parties pronounce the volumes of purchases per year that are tied to exclusivity, if the volume is maintained by the distributor then exclusivity remains. Respectively, the partner (distributor / retailer) may lose the exclusive rights on his market if he does not fulfil the minimum amount of purchases per year agreed upon the parties and indicated in the contract.
As a standard, Spinoff team creates special detailed profiling on each brand it plans to distribute that is called Dossier. All the information that is included in the Dossier is provided directly by the brand owner. It is designed to properly present each brand to all Syndicate Members and is used as a communication and collaboration channel to help them with a brand evaluation for future distribution. All Dossiers have a similar standard structure and are backed with all required information that provides the professional insight into the brand and allows to save a significant amount of time spent on presentation. Moreover, Dossiers are supported by qualitative visuals such as product images and video. This allows retailers/distributors to get a complete picture and brand vision. Due to the fact that Spinoff Platform has own video streaming on secure servers, and does not use YouTube or other channels, it makes possible to upload any number of videos and protect users. Each Dossier has two versions Open and Secret which in essence is the copy of the Open Dossier but a more extended one.
Each Open/Secret Dossier covers the following standard sections:
- ENTRY (general information about the brand);
- THE FOUNDER/THE BRAND/THE STORY (to better understand who is behind the brand and how all started);
- PRODUCTS & PRICES (products description with some RRP for bestsellers);
- BRANDING & DESIGN (packaging and branding are the key in addition to a quality product and always affects the choice of distributor / retailer whether to sell a particular brand or not);
- ACCESSORIES /ADDITIONAL BRANDS (sometimes one company has several brands or additional accessories that they can also present to potential retailers and distributors for consideration);
- MARKETING & SALES (this part gives an understanding of the marketing and sales strategies of each brand which is the key for retailers distributors. It describes which marketing tools, sales channels are used, where it is sold, how it supports distributors / retailers, plans for international distribution);
- MEDIA/AWARDS/REFERENCES (provide insight into the benefits and strengths of the brand).
Addition to the standard structure described above Secret Dossiers provides extra information about the brand and could be accompanied by NDA/sensitive information provided by the brand owner and dedicated to potential retailers/distributors such as:
- marketing materials such as leaflets, catalogues, presentations;
- price lists (ex-works and RRP prices excl. VAT);
- questionnaire form;
- certificates, registration documents;
- call recordings, protocols etc.
Since Syndicate members often have a lot of additional questions to the brand, Spinoff found a solution in the form of an interactive feedbacks in Google Sheet inserted into the Secret Dossier. You can find the series of questions/comments from Syndicate members and answers/comments by the brand owner to the most common in one form to all members at once. This feature protects against numerous ping-pong emails which are quite time-consuming.
Brand owners are free to provide information for preparation of the Dossier according to the plan in any convenient electronic format with copy/paste option (doc, xls, pdf file) as an attachment or through any Cloud space with the ability to download. All additional materials may be provided in their original format.
An Open Dossier serves as an indicator in order to present the products to all Syndicate Members and to get feedback from them before starting to work with a particular brand. Based on the feedbacks of all Syndicate Members, there are 2 possible options for the next steps. If the brand is interesting to most of the partners, the Secret Dossier is created and Syndicate begins the work with the market. If the brand is not interesting to Syndicate Members (distributors/retailers) for some reasons, the Open Dossier is removed from Procurement Platform and Spinoff no longer works with this brand.
SPINOFF.COM is a Procurement Platform (hereinafter PP) that was created only for the convenience of Syndicate Members' work. It automates and standardizes many processes of online information exchange. The name Spinoff was chosen since Syndicate Members spin off their tasks to the Procurement Department that is involved when required into the procurement process flow.
The PP divides into two parts, the open and the covered. The first version contains only 10% of the information about brands Spinoff Syndicate distributes. It contains Open Dossiers on the brands that Syndicate considers or already distributes. It has free access and is available in the Internet network through a browser. It serves for convenient familiarization with the new brands and products. Short perpetual links to Open Dossiers (i.e.spinoff.com/biopeptix) are unique for each brand, well-remembered and easily shared by any modern means of communication. This detailed information allows Syndicate Members (retailers/distributors) making own assessment of the brands and also to sublimate and provide to the potential customers and clients within the framework of products testing and evaluation.
The second version of the PP contains 90% and is covered from the general public and contains more extended Secret Dossiers and other procurement tools under a login and password and available only to our Syndicate Members (retailers/distributors). It is simplifying communication and processing between the distributors/retailers and brand owners/manufacturers. Secret Dossiers are filled with sensitive and only relevant information under NDA that is provided by brand owners, such as actual price lists, professional presentations (could be translated and used at various markets), other marketing materials, production videos and images, product shelf placement photos, recordings, protocols, know-how descriptions, comparison with competitors products (fighting guide), certification and other documents. Such essential for Syndicate Members (distributors/retailers) information helps to efficiently establish a document process flow, contractual terms, approval of prices, related questions/answers with a special form as well as exchange with new updates.
The Platform has a highly reliable level of protection since all information is located on secure German servers. Tailored smart software allows tracking all viewed /downloaded information flow based on IP address, which also gives the opportunity to secure our brands and partners sensitive information. In addition, we have own video streaming that protects users and allows to download any amount of video materials, moreover, the Platform is free from any advertisements or spam.