5.Non-dynamic pricing model Brand owners either demanded a significantly lower service fee or would just not use the distributor at all. The consequences of the outdated, supply-driven supply chain of Asia were manifold and debilitating for retailers, brand owners and distributors. These costs of ‘uncoordination’ stemmed from huge inventories, high costs of services, and process inefficiencies.
DAMEN POWEr
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THREE
Major challenges the company faced
ck of data transparency Essentially, every part of the distribution system was opaque and each party in the system worked in their own silo to maximize individual profits. These dynamics created enormous system inefficiencies and lost sales and profits.
2.Rise of the modern trade Modern trade channels, such as hypermarkets and category killer retail chains, were becoming increasingly popular amongst Asian consumers. Consumers liked the wide selection, latest products, and everyday low prices.