Distribution Strategy and Channel Conflict – Focus on Opportunities
Distribution strategy and channel conflicts are current focal points in Ecommerce. Where are the opportunities, what are the risks? Consumer behavior is changing permanently. Customers think and act omnichannel† Companies that missed out often attributed this to the deteriorating economic situation and low consumer confidence. These factors certainly play a role in lower sales in specific distribution channels, but consumers always spend money. However, they are doing this in new ways and through new channels. See this challenge as an opportunity to innovate and strengthen your business.
A change in distribution strategy is often the solution. But with change comes resistance. Channel conflicts with your current customers are lurking. Parties such as Amazon and Alibaba are getting bigger and your customers or resellers are making increasingly higher demands. How do you organize your distribution channels smarter and turn the risks into new opportunities? What do you need for this? Adjustments in your IT systems? Smart data analysts? A Marketing Automation solution? Our omnichannel specialists offer practical support. Concrete, pragmatic and based on many years of experience in omnichannel distribution.
Quantity vs quality?
Consumers have embraced the (price) transparency of the internet and have become more critical. As a result, you see the average prices fall in many branches. Price fighters such as Primark, Action and Lidl benefit from this. Consumers are more likely to shop for bargains. In the supermarkets, this is reflected in the increased pressure to act and an almost permanent price war for the last percentage of market share. For A-brand manufacturers, this means, among other things, that they have to offer increasingly higher discounts in order to participate in the deep promotions. Many companies are investing heavily in the growth of private labels because of the higher margins and customer loyalty. Do these developments necessitate a change of course in your distribution strategy? Discuss the possibilities with the experts at Ecommerce Result.
Shifts
Can my business benefit from shifts in the distribution column?
Now that almost everyone uses a smartphone, consumers decide how, where and when they buy. Because many traditional stores realize less turnover, wholesalers, brands and manufacturers are forced to adjust their distribution strategy. Wholesalers are increasingly also supplying end consumers with their B2B webshop, which can create friction with the current resellers. Brands and manufacturers are seeing their market shares fall as more and more companies introduce their own brands. Here too we see forward and backward integrations in the distribution column. Brands are increasingly opening their own web shops and brand stores in shopping centers. How do you deal with these shifts? How do you develop a distribution strategy that offers more value to existing customers and opens the way to new customers and markets? Our experts are ready to discuss new challenges and opportunities with you.
Growing without solid distribution strategy?
It is difficult for retailers who are affiliated with a franchise organization to understand that the franchisor will supply consumers directly via its own web shop. The same, of course, applies to wholesalers who sell their own products not only to resellers, but also directly to end users. More and more brand manufacturers, wholesalers and franchise organizations are communicating directly with end users. In many places, companies struggle with channel conflicts. Ecommerce Result has helped many companies develop a future-proof distribution strategy to minimize the possibility of channel conflicts.
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