Latest news of cost-increase resistance by buyers raise the following issues for NAMs:
Where at: Surprise, surprise! Whilst pragmatic NAMs do not expect retail buyers to roll over and accept cost-price increases, some state of equilibrium will be required to minimise supplier concentration and less choice…
Where headed: …if fewer, more powerful suppliers emerge in the coming months
Effect on you: Smaller players in niche categories can survive by optimising their (realistic) place in the market
Action: Time to revisit fundamentals of real consumer demand vs. available alternatives to define core proposition. Then numbers, numbers, numbers to calculate cost and value and build a financial rationale
Where at: Surprise, surprise! Whilst pragmatic NAMs do not expect retail buyers to roll over and accept cost-price increases, some state of equilibrium will be required to minimise supplier concentration and less choice…
Where headed: …if fewer, more powerful suppliers emerge in the coming months
Effect on you: Smaller players in niche categories can survive by optimising their (realistic) place in the market
Action: Time to revisit fundamentals of real consumer demand vs. available alternatives to define core proposition. Then numbers, numbers, numbers to calculate cost and value and build a financial rationale
