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A new research study by Scott Benfield
and Steve Griffith finds that off-brands — foreign made products
distributors buy from various sources — are 20% of channel inventory,
35% less in price, and the trend will increase. The research also
includes:
- Domestic brands are dying and
distributors don’t believe their price is commensurate with
their value.
- Off-brand support services are
as good as or better than many domestic brand services.
- Distributors can get off-brands
from six different sources.
- Domestic manufacturers will need
to react quickly or lose substantial share.
- Distributors will face
significant changes to purchasing processes, marketing events,
and margin income decreases.
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