As an owner of a brand and your engagement with contractually committed B&M business partners; it is your prime responsibility to provide positive and healthy business environment to your business partners. After lengthy discussions with FAIITA members, having substantial business stakes in retail, it is unanimously felt that there is a dire need to create and maintain level playing field across GTMs’ to ensure market hygiene for business sustenance & growth of B&M business partners, furthermore it is imperative to discuss, agree and implement the following:
1. There is a market need of one Nation and nearly one Price of your product range to obviate customer confusion on correct time, price and place to buy.
2. Contractually B&M partners should be able to match visibly most competitive price of your products, moreover the brand owner/OEM ensure seamless earning of a minimum sustenance business margin of 5% across entire product range.
3. During Sales Promotion period at online portals (or any other such promotional disruptive price fair), there will be a similar sale at B&M partners with similar pricing fully supported by Brand Owners, ensuring a minimum 5% Margin across entire product range.
4. Brand Owners/OEMs shall inform all registered B&M partners at least two weeks in advance; about likelihood of Sales Promotion activity by OLS, and advise partners to inform all footfall customers about it and stock products that will sell during OLS sales, to be in sync with online.
5. The brand owner shall also endeavour to augment the business in the offline channels during such discount periods proportionately to the surge in online sales of its products and provide special visibility through various marketing campaigns as per respective brand promotion strategies.
6. During sale period, products in stock of B&M partners of nearly similar specifications and configurations as being promoted by OLS will be treated
as same and Partners shall be allowed to earn a minimum 5% sustenance margin on sale of these products during promotional period.
7. A partner agreed Price differential matrix of Product Configuration/Specifications will be submitted by Brand Owner for arriving at stack price of various configurations of products, keeping in mind a minimum of 5% sustenance margin.
8. All the price parity compensatory claims to be settled by Brand Owners within one week .
9. Targets in post disruptive periods to all B&M partners shall be assigned on basis the actual sell out achieved by B&M partners and not construed to push inventory to them.
10. In the event of termination of partner agreement, it shall be responsibility of brand owner to clear within reasonable time, the unsold inventories of the terminated partner.
11. During price disruption happened last festive sale our members are piled up with huge stocks for which viable solution is required from vendors so that there loses are covered and there stocks are liquidated.
12. As a matter of fact our Members are liable to pay overdue interest on all outstanding to your Distributors consequently ad idem interest is justifiably payable by you to them towards overdue incentives/backends claimed.
You are requested to confirm the above points in order to allow B&M partners to perform healthy and growth oriented businesses and remain in sync with the growth strategy of the brand.
