Retailer/Manufacturer Conflict

Suzanne G. Marshall
Revised by: Nancy J. Rabolt , Judy K. Miler

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208796.0031
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Over the last thirty years the business relationship and negotiable terms between manufacturers and retailers have changed significantly because of the growth and strengthening power of retailer groups and decreasing power of manufacturers. This shift from manufacturers to more large retailers having the power to dictate and negotiate the business terms has resulted in some manufacturers suffering from being more responsible for the retail business and sales of their merchandise, as well as a profit cut. In this case, two major manufacturers are faced with the retailers’ pressure and demands for charge backs, prepping merchandise, hiring merchandisers, and other profit-cutting demands, such as markdown money. The vendors are not sure what they should do about their retail accounts’ demands of business responsibility.

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