Archives tagged: retail
Having value-creating channel partners is much better than the alternative. But even good partnerships carry risk. In the channel, one of those risks is that the partner becomes more powerful than the supplier.
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Since rebates are accrued and paid to customers later, one could state that all rebates are “retroactive” in that they impact the effective pocket price captured after the invoice is issued, and generally are issued after the invoice is paid. But that is too broad of a definition of “retroactive rebates.”
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Forgoing traditional channel distribution didn’t stop Oatly from a quick expansion. The New York Times reported in January 2018 that “Oatly has spread from 10 locations in New York to more than 1,000 locations nationwide,” less than a year after it landed in the U.S. 1,000 locations pales in comparison to its footprint had they teamed up with grocery retail.
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Entrepreneurs are generally entering a business landscape with less information, less skills, less resources than an established business. In fact, one should wonder how any entrepreneur can succeed against large, entrenched corporations they’re forced to share the market with.
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Common examples of channel partners include wholesalers, distributors, and retailers. All of these activities are necessary tasks for a functioning commercial organization. If the supplier doesn’t do one of these tasks, a channel partner must. Conversely, if a channel partner doesn’t, the supplier must.
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In Winning in an era of unprecedented disruption: a perspective on U.S. retail, McKinsey and Company, the international consulting firm that specializes in retail, says the U.S. retail industry is experiencing disruption – in reinvention – at an unprecedented speed.
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What can a CPG control and what must be taken as a “given” from the market? Which price should a CPG use as its benchmark for comparing different channels and retailers? Which price points should a CPG attempt to manage?
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Netflix, a company founded in 1997 as a direct mail retailer of DVD movies, has made a series of brilliant business decisions that have elevated the company to an elite player in today’s home entertainment marketplace.
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In this missive, I examine how companies selling to end customers through distributors and retailers can design their commercial policy.
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