When brands try to avoid channel conflict with their retailers, they often sacrifice sales on their ecommerce site. But it doesn’t have to be that way. Here are three ways to turn the problem into a solution.
You think retail is tough, try manufacturing.
Not only do those who design and produce the products have to worry about a steady supply of materials, storage costs, shipping costs, and plant maintenance… they have to keep their sales channels happy.
And that can be a chore.
Here’s the toughest thing: the buyer loves to look for ways to “cut out the middleman”. That creates a major dilemma. For example, one company that’s currently disrupting the men’s grooming industry with this strategy is Harry’s.
What initially started as an online-only shaving subscription service has turned into a massively successful men’s grooming brand that sells their products through an ecommerce store as well as in different big-box retailers such as Walmart and Target.
This company has avoided channel conflict by keeping up a standard price for its products across all sales channels to bypass any price competition between the manufacturer and retailer.
The key is keeping up stability all through your distribution and sales channels. If the manufacturer limits distribution to flow just through retailers and other distributors to the customer, the brand distances itself from the loses sales and marketplace.
In the business school, it is called “channel conflict,” however we call it “opportunity.”