According to the BBC, the same well-known brand of whiskey is 27 euros on shelves in the Republic of Ireland - but in Northern Ireland it is £15 - the equivalent of 16 euros, a reduction of 40.7%...
Think about the potential distortion of trade caused by uncoordinated price-hikes in the ROI:
Where at: The real issue here is the distortion to trade caused by cross-border (ROI/NI) reaction to shelf-price differentials North and South of the border, with individual shoppers but the tip of the iceberg… i.e. think third-party bulk purchases transported across a 310 mile long – i.e. unmanageable – border with the Irish Republic. There is already a 15% currency-based price differential arising from recent falls in sterling…
Where headed: Any disproportionate supplier price increases for NI and ROI will simply add to the appeal of a shopping journey North…
Effect on you: UK brand suppliers will suffer loss in brand equity in Ireland if savvy consumers perceive there to be differences that are not transparent and defensible. Paradoxically, ROI consumption of UK brands may also increase via NI, while sales are dropping in the South…
Action: UK suppliers need to think through where their brands are currently (in ROI), where they want them to be, and plan for price increases that maintain the status quo in UK and Ireland, if possible…
Still want to push through that price increase in the South, regardless?
Think about the potential distortion of trade caused by uncoordinated price-hikes in the ROI:
Where at: The real issue here is the distortion to trade caused by cross-border (ROI/NI) reaction to shelf-price differentials North and South of the border, with individual shoppers but the tip of the iceberg… i.e. think third-party bulk purchases transported across a 310 mile long – i.e. unmanageable – border with the Irish Republic. There is already a 15% currency-based price differential arising from recent falls in sterling…
Where headed: Any disproportionate supplier price increases for NI and ROI will simply add to the appeal of a shopping journey North…
Effect on you: UK brand suppliers will suffer loss in brand equity in Ireland if savvy consumers perceive there to be differences that are not transparent and defensible. Paradoxically, ROI consumption of UK brands may also increase via NI, while sales are dropping in the South…
Action: UK suppliers need to think through where their brands are currently (in ROI), where they want them to be, and plan for price increases that maintain the status quo in UK and Ireland, if possible…
Still want to push through that price increase in the South, regardless?
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