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It's interesting how few people understand (this author included) about Costco is how its huge quantities of consumer consumables (eg toilet paper etc) allows C
by sunstone 7y ago
It's interesting how few people understand (this author included) about Costco is how its huge quantities of consumer consumables (eg toilet paper etc) allows Costco to avoid channel conflict in this segment, which in turn drives traffic into their stores. To my mind this is the key retail innovation that separates Costco from the rest.
- enjoiful 7y agoCan you explain this concept more? Sounds interesting.
- gowld 7y agohttps://en.wikipedia.org/wiki/Channel_conflict https://en.wikipedia.org/wiki/Channel_conflict
- sounds 7y agoIt sounds like Costco's larger toilet paper packages make the toilet paper manufacturer feel less of a conflict of interest? That Costco isn't undercutting the manufacturer's other channels such as online sales? What exactly am I missing here? The Channel conflict model seems to be about maximizing revenue by not selling the product to the customer and ignoring new channels. Not selling can boost short term revenue but it's a risky move when your competitor is Amazon.