How to Distribute to San Jose
San Jose is the cultural, financial, and political center of Silicon Valley and the largest city in Northern California, by both population and area. With a 2020 population of 1,033,670, it is the 3rd largest city in California and the 10th largest city in the United States. San Jose is currently growing at a rate of 0.17% annually, and its population has increased by 9.27% since the most recent census, which recorded a population of 945,942 in 2010. Spanning over 181 miles, San Jose has a population density of 5,813 people per square mile.
Located in Silicon Valley, a lot of money flows into San Jose. And this means a lot for retail trade. The average household income in San Jose is $133,334, with a poverty rate of 9.11%.
Asides from the money from Silicon Valley, tourism happens every year in the city, and this brings millions of dollars in retail trade.
Clearly, there is a lot to be made in the San Jose market. It is not surprising that manufacturers and distributors have mapped out the area and are looking to make more sales.
To enter this market, you must understand the peculiarities. One of which is that San Jose has a university community – and that’s aside from the tech world in Silicon Valley.
You can take a direct or indirect approach to distribute products to the city. These approaches will be discussed at length when looking at distribution to the areas under San Jose.
Distributing Products to South San Jose
South San Jose is the southern region of San Jose, California in Silicon Valley. South San Jose Hills has a 2020 population of 20,593. South San Jose Hills is facing no population decline as its population has increased by 0.20% since the most recent census, which recorded a population of 20,551 in 2010.
There is relative economic growth in South San Jose. The average household income in South San Jose Hills is $74,219, with a poverty rate of 15.65%. And this shows it is still great for retail trade.
Entering a market like that of South San Jose may require being very strategic. You can choose to go directly by networking within retailers’ associations. These associations allow you to reach as many as possible and establish personal relationships with them.
An advantage of this method is that you can easily keep track of inventory and get feedback. Because you’re almost in touch with final consumers, you can get what consumers are saying and how to improve your offer.
The RangeMe platform is also helpful for visibility. Though visibility might be an issue as there are a lot of people also looking at selling the same products to the same retailers.
However, you can go indirectly by using distributors. Distributors do the work for you by getting your products to retailers. They do the pitching and distribution for your products. Manufacturers prefer using distributors because they understand the market more. They know which product will sell in a particular area and which won’t.
Moreover, they have a wide distribution network and can get the products to hundreds of outlets within the area or all over. So, in distributing to South San Jose, distributors know exactly where to get your products to. The downside is that you may not get real-time data on inventory. That means that when your products are leaving the shelves, you may not immediately get notifications. And you want to be consistent when you’re already getting the attention of consumers. However, some distributors have found a way around this with technology.
Distributing Products to Downtown San Jose
Downtown San Jose is the central business district of San Jose, California, in Silicon Valley. It is the largest urban center of Silicon Valley. Downtown is one of the largest tech clusters in Silicon Valley, as well as the cultural and political center of San Jose.
With a community like this, retail trade will thrive. Getting into this community could be directly and indirectly. Directly – through retail associations and online platforms to reach retail buyers and procurement staff. Indirectly – through distributors.
Distributing to North San Jose
North San Jose is known for pro soccer games at Avaya Stadium and the San Jose Flea Market, filled with antiques, crafts, and food vendors. Cyclists and pedestrians frequent the Guadalupe River Trail and hiking trails near Sierra Vista Open Space Preserve and Alum Rock Park, nestled in a canyon.
Entering into the North San Jose market can also be done via the two approaches of direct and indirect. You can either reach the retailers as the manufacturer or engage the services and expertise of distributors. Marketing is, of course, very vital.
Things to Note when Distributing to San Jose
The City of San Jose is home to a lot of things. Being a center of technology, its traffic is somewhat different. It is a rich city, but you need to understand it to do well. More, it has San Jose State University. And as with every university community, they have unique needs, and the approach is different from that of just any community.
Marketing is as vital as the product itself. You need to invest time and expertise into ensuring that the marketing message is passed across to the prospect. Since it has its peculiarities, you may need to tailor the marketing messages to the people of the area. Through the internet and mass media, you can send these messages.
Cost of Living
According to Business Insider in 2019, San Jose is the most expensive place to live in the US. Goods and services are about 27% more expensive than the national average in San Jose, and the median home sale price is over $1 million. You may want to note this.