Tuesday, February 24, 2009

Power over Brands

After realizing the mass-market retail has created some of the greatest wealth globally, it is interesting to note that the blog Branding Strategy Insider has an entry titled: Why Retailers Call the Shots that analyzes the current power of retail chains over manufacturers. The numbers are staggering, The still growing Aldi chain does not sell Coke products in Europe, while Coke is losing millions in sales. P&G refused to make private label diapers for Costco, consequently were delisted as a supplier - estimated to be losing over $2M in sales annually according to the article. Survivors in today's economic climate are playing hardball and those closest to the consumer - retailers hold the power over manufacturers brands.

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