1.0Third Eyesighthttps://myechoproject.com/TESDevangshu Duttahttps://myechoproject.com/TES/author/devangshu-dutta/Retailers vs Brands - Third Eyesightrich600338<blockquote class="wp-embedded-content" data-secret="fMZ9WoDzvS"><a href="https://myechoproject.com/TES/retailers-vs-brands/">Retailers vs Brands</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://myechoproject.com/TES/retailers-vs-brands/embed/#?secret=fMZ9WoDzvS" width="600" height="338" title="“Retailers vs Brands” — Third Eyesight" data-secret="fMZ9WoDzvS" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script>
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In early-June Big Bazaar (part of Future Group) was reported to have broken off its relationship with Cadbury’s. About 2-3 weeks later the two were reportedly back together. The relationship between brands and large retailers is truly one of the “love-hate” kind. And this case is no different from many other such relationships in various markets around the world. There is no doubt that brands love the scale that large retailers provide them, with the quick access to a large footprint in the market, and the high visibility. On the other hand, as a vendor, they hate the negotiating edge that this scale gives the large retailer. On the other side, retailers love brands for the footfall they bring. However, what retailers don’t like is the fact that brands will generally charge a premium of 10-50% over a comparable generic product. In some cases the premium may be so high that the brand product’s price itself is multiples of a generic product’s price.