How to Distribute to Los Angeles
Los Angeles is home to Hollywood. Los Angeles is a city in California. With a 2020 population of 4,015,940, it is the largest city in California and the 2nd largest city in the United States. Los Angeles is currently growing at a rate of 0.32% annually, and its population has increased by 5.89% since the most recent census, which recorded a population of 3,792,620 in 2010. Spanning over 503 miles, Los Angeles has a population density of 8,564 people per square mile.
With the above figures, it is crystal clear that Los Angeles is a large market that can move products within a short time. The population is there, and the growth is not slowing down. At 0.32% per annum, this could mean a consistent uptick in sales for manufacturers and distributors.
The average household income in Los Angeles is $91,608. This means more money to spend on consumables than in other states in the country. It should be noted that the city also has a poverty rate of 19.05%, as it is an expensive city to live in. Notwithstanding, there is still a lot of potential in sales in the city.
When it comes to product distribution, it is crucial to consider the cities that comprise Los Angeles. Some of them will be looked into below:
Distributing to Santa Monica
Santa Monica is a city within Los Angeles County, which is very large. Technically, Santa Monica is incorporated separately and has its municipal government separate from the City of Los Angeles. However, Santa Monica is woven into the fabric of LA (city and county) and could be thought of as a suburb.
And as a feature of the greater Los Angeles, Santa Monica is an upscale area. The cost of living there may be quite higher than the average place in the United States, and the population is not much. Estimates put it at almost 100,000 inhabitants.
As with every city, experienced distributors would have mapped out the distribution networks and know which products fit and where to put each item. Thus, a new manufacturer just entering the Los Angeles market may want to work with them.
There are not many retail associations. Apart from the Santa Monica Chamber of Commerce, not much is known of any other retail associations.
Certain items will sell specifically in an environment like this. Upscale and high-end items will sell. Being a vacation spot, vacation goods, and items will also make good sales in this county.
Distributing to Malibu
Malibu is known mostly for its fantastic surfing waves. It is another upscale county in Los Angeles, and as an icing on its cake, it has some areas occupied by billionaires. The famous Billionaire’s Beach comes to mind here.
The population of Malibu is just about 13,000 – quite small – but the county compensates for it in the cost of living. The cost of living in Malibu is three times the national average. Thus, it is a green market for upscale and high-end products.
Just like in Santa Monica, there is no retail association in Malibu, or for Malibu retailers, except, of course, the Malibu Chamber of Commerce. However, there is the California Retailers Association. This is a state-wide retail association that can be used for networking purposes. Since most retail companies in the state – and Malibu – will be there, new distribution opportunities can open up.
Working with an experienced distributor can be of great advantage in an area like this. An experienced distributor would know the distribution networks and how to penetrate the markets. And since not all products sell everywhere, having an idea of what sells is vital.
Distributing to Long Beach
Known for its waterfront attractions, including the permanently docked RMS Queen Mary and the Aquarium of the Pacific, Long Beach also hosts the Grand Prix of Long Beach, currently an IndyCar race, and the Long Beach Pride Festival and Parade.
With a population of about 500,000, Long Beach has a lot to offer in terms of population and retail markets. Compared to upscale counties in Los Angeles, such as Malibu, Santa Monica, and Beverly Hills, Long Beach is still a little moderate. Emphasis on little as it is still high when compared to other places in the US. According to Payscale, ‘Transportation expenses like bus fares and gas prices are 31% higher than the national average. Long Beach has grocery prices that are 12% higher than the national average.’
Through the California Retailers Association and Distributors, you can find your way into the markets and get your products on the shelves.
With the vacation spot Long Beach is, it is expected to have a high demand for certain products at certain times of the year. And the manufacturer must be prepared to meet this demand.
Certain Important Factors to Note When Distributing to Los Angeles
Los Angeles, and the whole of California, is known to be quite upscale. Not because there are no poor people, but because a lot of rich people reside there. Thus, it is important to know what products appeal to the higher demographic of the environment to sell to a consistent niche market.
It is important to tailor advertisements to a particular market. If you’re targeting people in Long Beach, you should find a way to appeal to their fears and aspirations. Rich folks in Malibu may avoid TV ads, but they still meet ads on the internet, magazines, billboards, and many other places. Thus, you should tailor your approach to their peculiarities.
Unique Selling Point
A good way to build brand loyalty is to have a unique selling point. When people find that your product offers something appealing to their needs, it is easy to make them stick with you.