There are several different retail players.
- Retailers sell to end consumers. They are different sizes and can be present in different countries and regions. Some well-known retailers include Walmart, Carrefour, and Target.
- Distributors or wholesalers sell to small retailers and can purchase in large quantities but operate on low gross margins.
- Franchises are independent retailers that operate under another company's well-known brand, but franchises are restricted on how they can operate.
- Agencies and Brokers are sales agents for Consumer Products companies and receive commissions based on third-party sales. They can represent various Consumer Products companies.
- Diverters buy extra parts of a bulk deal and sell it somewhere where the deal isn’t available. Diverters are mainly in the U.S. or where there is a larger market with a common language and currency.
In this video, you learn about the various routes to market used by Consumer Products companies and the challenges they face.
SAP Customer Experience offers one technology stack that can be used by all routes to market and all subcompanies within a single entity, creating synergies between them and serving the consumer in a more holistic way without sacrificing agility.
Lesson Summary
- The different types of retail players include retailers, distributors/wholesalers, franchises, agencies/brokers, and diverters.
- Consumer goods companies have two main routes to market: direct to customer and indirectly through retail stores or wholesalers.
- Companies are facing challenges in meeting consumer needs and expectations due to the complex landscape of sales channels and the limitations of current technology.
- SAP Customer Experience offers a technology stack that can be used by all routes to market and subcompanies, creating synergies and serving the consumer in a more holistic way.