The role of the non-food category in retail
Non-food products in retail are divided into two main subcategories: Non-Food 1 (N1) and Non-Food 2 (N2). Although together they make up the non-food category, which is often viewed as a whole, they differ in turnover characteristics, product types, and logistical and distribution requirements.
Special attention should be directed to the N2 category, which adds additional value and differentiates retailers in a saturated market.
You can learn more about the non-food category here.
Differences in turnover and product type
The Non-Food 1 (N1) category includes fast-moving products such as cleaning liquids, hygiene items, and cosmetics. These items are characterized by high purchase frequency and constant sales, which require more frequent but smaller orders for quick stock replenishment. N1 is essential for maintaining daily sales stability.
On the other hand, Non-Food 2 (N2) includes products with slower turnover, such as electronics, small domestic appliances, textiles, and toys. These items are of higher value and are purchased less frequently, but play a significant role in shaping the store's image as a place with a rich and high-quality offering. It is this category that allows retailers to attract customers who are looking for specific, less frequently available products.
Kenty Adria specializes in the distribution of the N2 category and recognizes the key role of these products in building long-term customer loyalty.
The importance of N2 as a competitive advantage
Although N2 category items are not consumables, their higher price and less frequent purchases make them a strategic advantage for retailers. In a saturated market, where food and N1 category offerings are often similar among competitors, an attractive and diverse N2 product selection can be a key differentiating factor.
Customers will often choose stores with a better selection of items such as household appliances or toys, even if they came for basic products. We help retail chains optimize their N2 offerings by providing products that capture consumer attention and create added value.
Complexity of distribution and strategic management of N2
Logistical requirements for the N2 category differ significantly from those for N1. While the fast-moving N1 category typically relies on local suppliers and simple transportation networks, N2 requires international logistics channels, including sea and air transport. This brings greater complexity but also an opportunity for retailers to create a distinctive product portfolio.
The distribution of N2 products requires precise planning and a stable network of partners to ensure product quality and availability. This helps retailers maintain competitiveness and deliver high-quality products on time.
Developing the N2 sector for long-term competitiveness
Effective management of non-food categories is crucial for the success of retail chains, with N2 products playing a key role in providing a strategic advantage by attracting customers and building loyalty.
Kenty Adria ensures exceptional support for its partners in the distribution and management of the N2 category, providing tailored solutions that allow for the optimization of offerings and maximize the potential of this category. Our expertise in logistical processes, combined with a detailed understanding of market trends and customer needs, enables retailers to build a rich, attractive, and competitive portfolio that not only attracts new customers but also retains the loyalty of existing ones. Therefore, we provide an advantage in managing complex supply chains and ensure the availability of products that shape the recognition and success of our clients's stores.