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2021 | OriginalPaper | Chapter

4. Channel Strategy and Conflict Resolution

Author : Jiazhen Huo

Published in: Advances in Theory and Practice in Store Brand Operations

Publisher: Springer Singapore

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Abstract

The introduction of a retailers’ store brand is sure to bring channel competition to the relationship between manufacturers and retailers because of channel encroachment. The reality is that it is easy for store brand products to compete with the national brand products of manufacturers, which may be problematic for the manufacturers. Most of the profit from store brand products accrue to the retailer, manufacturers cannot afford for their products to lose significant market share to the competition. Thus, even if national brand manufacturers become co-producers of store brand products, they still need to find a reasonable channel coordination method to mitigate channel conflicts caused by the introduction of store brands and achieve win-win outcomes. In this chapter, we discuss aspects of channel competition between traditional manufacturers and retailers, followed by aspects of channel competition that further consider store brand issues. We consider the relevant in the appropriate sections following.

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previous chapter Pricing Strategy for Store Brands
next chapter Supply Chain Coordination
Footnotes
1
See the China Consumer Market Analysis Report (2017) available at https://​www.​sohu.​com/​a/​209418195_​99923947.
 
2
See Accenture holiday shopping survey reveals Canadians are “webrooming” and “showrooming” to save money available at https://​newsroom.​accenture.​com/​industries/​retail/​accenture-holiday-shopping-survey-reveals-canadians-are-webrooming-and-showrooming-to-save-money.​htm.
 
4
See the China Luxury Report 2019 available at https://​www.​mckinsey.​com.​cn.
 
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Metadata
Title
Channel Strategy and Conflict Resolution
Author
Jiazhen Huo
Copyright Year
2021
Publisher
Springer Singapore
Book
Advances in Theory and Practice in Store Brand Operations

Print ISBN: 978-981-15-9876-0

Electronic ISBN: 978-981-15-9877-7

Copyright Year: 2021

DOI
https://doi.org/10.1007/978-981-15-9877-7_4