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Jabong.com: Balancing the Demands of Customers and Suppliers
內容大綱
Jade eServices Pvt. Limited (Jabong), an e-retailer of fashion products in India, regularly had to balance conflicting expectations from its supplier brands and consumers. The discounts that e-retailers had to offer to consumers to generate sufficient sales resulted in brand dilution, which compelled these brands to avoid the online channel. After allowing large discounts on Jabong’s website for two years, Puma, a major international sports shoe brand, decided to stop discounting product lines that were contributing to 14 per cent of Jabong’s footwear sales. Puma products helped to attract new customers, and Puma’s decision had the potential to affect the commercial terms offered by other footwear brands, which would have even more impact on Jabong. Jabong’s director of sports apparel knew that he was unlikely to meet the required growth figures without discounts on Puma’s products. He needed a new strategy to compensate for Puma’s withdrawal of discounting options, and he needed it immediately.
學習目標
This case is ideal for use in marketing courses at the graduate level. By studying the case, students will learn about the following points:<br><ul><li>How to manage the transition from multiple distribution channels to one channel</li><li>How to navigate the inherent conflict between e-retail and conventional retail channels</li><li>How to avoid the risk of brand dilution when lowering prices in e-retail to drive higher sales figures</li><li>How to balance conflicting demands of consumers and suppliers in e-retail</li></ul>