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Disruption in the Channel
Disruption in the Channel
Report Overview
Disruption in the Channel is based on a survey of some 200 distributors of whom 70% were executives about their current practices and future plans for importing off-brands. This research differs from other research on private labels in several ways including:
| > | Only 27% of distributors plan to private label off-brands | | > | 60% of distributors say brand value is declining and, since private labeling is a branding strategy, it is unlikely that research based on private labeling and calls for private labeling to increase are accurate | | > | The research has detailed chapters for distributors and manufacturers on what to do regarding the trend toward off-brand purchases | | > | The research is statistically validated to 95% confidence and is not Delphi based which has been shown to be inaccurate for complex issues |
Why should you care about off-brands?
The research details the following statistics that will influence the distribution channel significantly for years to come including:
| > | The average price differential of off-brands versus domestic brands is 35% even if the domestic brand was made in a foreign country! | | > | Approximately 20% of channel inventory is in off-brands | | > | Eight out of ten distributors plan to increase or significantly increase their purchases of off-brands in the next five years | | > | Our financial analysis shows distributors cannot afford to not purchase off-brands and margin dollars are likely to fall as off-brands are considerably less in price and the price flows to the marketplace in a short time |
Aren't off-brands risky?
The research finds the following:
| > | There are six distinct sources from which to procure off-brands | | > | Codes and product standards are available in foreign countries and there are independent testing labs that can verify off-brand quality | | > | Distributors can buy liability insurance for off-brands or simply request their off-brand companies secure an acceptable policy | | > | There are several easily used web sites to find thousands of off-brand suppliers |
What will happen to domestic brand relationships?
The research, regarding domestic vendors, finds the following:
| > | In 20% of the cases, domestic vendors initiate channel conflict | | > | Domestic vendors are investing in services that many of their distributors don't value | | > | Domestic vendors will likely reduce co-op funds and sales promotions to combat off-brands | | > | There will be channel conflict with co-operatives and buying groups and domestic vendors | | > | Many distributor associations will be put in difficult positions as their members move toward off-brands |
This is one of the most profit altering trends to hit the distribution channel in years. Find out what many billion dollar distributors and domestic vendors don't want you to know! Order now.
Cost: 1 to 3 copies - $112
4 to 7 copies - $105
8+ copies - $95
Available March 1, 2008
To order this report, CLICK HERE.
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| March 8 |
| Professional Sales Channel Management |
Using proven management tools, frameworks and methods to prepare channel managers to drive sales and market share through indirect sales channels.
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