James Hill

1 month ago | mediacat.uk | Natasha Randhawa |Svilena Keane |James Swift |James Hill

When a manufacturer creates a direct-to-consumer (DTC) channel, the prevailing theory is that it can strengthen the brand in ways that also benefits its retail partners. But a study published in the Journal of the Academy of Marketing Science has found that retailers view direct channel entry as a threat. This vertical entry shifts suppliers from partners to competitors, and in response, many retailers reduce the brand’s shelf presence, raise prices and, as a result, lose sales.