Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Pricing Risks – Parallel Distribution Channels

Pricing Risks – Parallel Distribution Channels


A Wellington business consultant has warned New Zealand exporters to learn from the recent rugby jersey pricing experiences of Adidas.

David Miller, Director of Vantage Consulting Group, says that companies must be very careful when they are operating parallel distribution channels internationally, particularly with consumer products.

“There are major reputation risks to brand and company when customers can access product at different prices from different channels," said Mr Miller.

“This is over and above direct impact on sales if the issue becomes a public one and large numbers of customers decide not to buy a product because they perceive a lack of equity amongst pricing alternatives. The greatest risks arise when online prices are significantly cheaper than local, traditional retail prices"

Mr Miller said that companies must be very careful to maintain consistent pricing across channels when they are operating in different currencies.

“It may well be perceived by consumers as arrogant if manufacturers take the approach that foreign exchange fluctuations are the customer’s problem rather than theirs. And it is perceptions rather than reality that drive customer behaviour.”

"Consumers in other countries have no interest in the level of the New Zealand dollar. They are interested in what they have to pay for a particular product and its price relative to competing products in their own currencies. This is something that our commodity exporters have to deal with on a daily basis, but it can become more complicated for manufacturers of consumer products where a multiplicity of distribution channels, traditional and web-based, are available.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Stats NZ: Prices For Transport And Housing Rise In March 2021 Quarter

Higher prices for transport and housing led to a 0.8 percent lift in the consumers price index in the March 2021 quarter, Stats NZ said today. Prices for getting around rose in the March quarter. Transport prices rose 3.9 percent, the biggest quarterly ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>


Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>