What Is The Battle Of The Brands In Distribution?

In many emerging markets such as the Asian retail space the battle of the brands has just begun. America has witnessed this for the last fifty years. The battle of the brands in the distribution channel began with the emergence of Wal Mart as the largest company in the world. Wal Mart and other retail giants began to create brands on their own in the fast moving consumer goods, consumer durables and clothing space.

The distribution channel became the manufacturer. These retailers began tough negotiations with large manufacturers such as Procter & Gamble and Unilever. They bargained for higher margins in exchange for space in their stores. Customers were displaying more loyalty towards the store than to the brand. Eventually all the links in the distribution chain have joined the battle. As manufacturers get more ambitious, their dependency on the distribution chain increases. The battle of the brands has been a trend in developed nations and will soon take center stage in developing nations.