A-brands go online to compete
A-brands in the UK are looking to online sales as a way to compete against the growing number of private label products on supermarket shelves, says industry analyst IGD. According to the report in the PLMA Scanner, the analyst notes that food firms are growing online sales, both directly and through third-party sites.
IGD says A-brands hope the online activity provides solutions for “some of the most commonly found barriers suppliers face when dealing with bricks-and-mortar stores. These include space constraints and the rise of private label.”
The analyst says that suppliers face a number of challenges establishing their own e-stores, “These include setting up an efficient, cost-effective home delivery supply chain, and ensuring that the delivery fee and overall pricing are competitive. Deciding on which brands and categories to sell online also remains a growing issue for many.”