Maintaining margins
What is causing manufacturers to want to diversify their retail channels? For Malison, squeezed margins due to supermarket price wars have been a big driving factor.
“Price wars, especially in grocery, will not be slowing down anytime soon and certainly have contributed to manufacturers/producers’ attempts at cutting out the middle man.
“Especially with the rise of e-commerce, suppliers, manufacturers and retailers both are trying to figure out how to maintain their margins. Cost competition has led a number of retailers to ramp up pressure on their suppliers in order to compete for shoppers that are hyper-conscious of value.”