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“Department Stores’ Big Sales Are Getting Smaller,” according to the Wall Street Journal article (http://www.wsj.com/articles/department-stores-big-sales-are-getting-smaller-1479830406 ).   Designers of brands like Coach, Michael Kors, Fitbit, North Face, and dozens of others don’t want their current-season merchandise discounted when the same products are offered at full price at other retailers — including the designers’ own outlets.  Some brands are choosing more exclusive distribution as a reasonable tradeoff between smaller sales levels and greater channel pricing control and consistency.  This problem sits squarely at the intersection of channel management and pricing strategies.

How does this affect you?  Speak up if you have issues like this with your products and channels.

Our newly-published book, A Field Guide to Channel Strategy: Building Routes to Market, provides insight into channel pricing challenges and strategies (Chapter 13), as well as the full range of other channel design and channel management topics.  Find the book on Amazon.com at:

https://www.amazon.com/Field-Guide-Channel-Strategy-Building/dp/1539987744/

Authors:  Anne T. Coughlan and Sandy D. Jap

 

 

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