Retail Brands Crossing Over to Corporate Channels
The number of retail brands crossing into the the corporate channels continues to accelerate. However the number of retail brands pulling out of the corporate markets is also on an upswing as failed launch after failed launch continues to doom otherwise successful companies.
Ping made a splash a few years ago when they decided to sell their popular apparel line in the corporate markets. In choosing Sanmar as their main supplier for the industry they choose a business with a long standing reputation within the market. By going with a top 5 ASI Supplier they essentially guaranteed maximum exposure and a deep network of sales and marketing reps. There appeared to be tremendous upside but sales lagged and it was announced earlier in 2009 that Ping would be leaving the corporate market entirely. One of the problems encountered stemmed from the need of Ping and subsequently Sanmar to strictly enforce prices in order to protect the retail golf network. Those efforts are never popular with distributors and in the end the outcome was predictable.
Other moves into the market have been more successful. Scripto partnered with top 5 supplier Leeds in 2009 to release a line of branded writing tablets and low priced budget pens. Although sales have reportedly been going strong the potential cannibalization of existing product lines will be a going concern. For instance the Scripto Jr. Journal Bundle Set is available with a decorated pen for far less than the cost of just a journal from many other vendors. The problem may be that it is also much less than similar items within the same brand. Where they may hit it out of the park is with items like the Scripto Constitute Click which is an ergo pen with large grip similar to much higher priced retail competition for significantly less. For those looking for ergonomic pens the Scripto Scroll Click has the "pro grip" which mimics what is available from retail brands. The idea behind the pro grip is comfort and style. It is also an accent point on the pen which at this price is expected to compete directly against products from Bic and Sandfords Papermate line. Other brands have been folded into the main lines and the result is products such as the Bamboo USB Flash Drive 1GB which are among the many products available in time for Earth Day.
It has not all been a success for Leeds. Last year to much fanfare they released the Karim Rashid line of products. This year they are down to just two and opted to not expand the line at all. Although the brand has some distinction in the retail channel it failed to carry over into the corporate markets and fell flat.