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Western Europe: The situation

Western European retailers are international powerhouses today. They have implemented every possible system for purchasing in a more efficient way. This minimizes the opportunities for brands to “make a decent margin”. Category management and retail labels limit shelf-space across all markets. Even for powerful brands, this means there is simply less space available.

Digital distribution channels have made the market transparent. This makes “margin taking by region” very difficult. Consumers now know the price of products in other regions – it is only one click away. They are also changing their buying behaviours so people “look in-store” but “buy online” and vice versa. These multi-channel consumers disconnect with existing systems. After all, traditional channel and distribution strategy typically focuses on one channel only.
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