The Research Of Slotting Allowance And Service Incentives Of Supplier

In recent years,with the increasing maturity of chain mode of operation,a marked increase in the concentration degree of retail market.The emergence of large retail organizations,on the one hand,bringing distinctive products as well as appropriate services.On the other hand,increasing its control of supply chain,enhancing the buyer power between retailers and suppliers.Empirical research shows that the excessive expansion abuse of retailers' buyer power.As a direct manifestation of buyer power,slotting allowance has been called the breach of competition mechanism,it has also become the direct evidence of damage to social welfare.However,channel cost benefits analysis cannot be separated from the deep exploration of its motivation mechanism.Only from the source to find motivation can accurately evaluate the effect of slotting allowance.Research focus too much on market power under the influence of price competition,ignoring the important role of service competition.However,price competition theory cannot fully explain.This paper tries to put production service incentive into competition model,helping us to understand the affecting factors of channel fee,so as to make the reasonable presumption of slotting allowance issue.In order to make more convincing,this paper reviews the related theory,then we get to know that we get to know that buyer power will affect slotting allowance,and slotting allowance will also have the opposite effect on buyer power;Slotting allowance strategy can be used to extract high quality suppliers,to avoid overflow production services,to stimulate supplier to provide better production services,at the same time,those who pass a quality investment and production services are more willing to implement slotting allowance strategy.In the context on the basis of systematic review theory research,we divide the process of new product introduction into two market structures,building production services and no production services.To comparative evaluation of the domain factor and performance of different market.The following conclusions: first,the retailers' buyer power is not the sufficient conditions of slotting allowance.Second,in most cases,buyer power does not directly impact on the initial distribution of the industrial chain profit,but to participate in profits allocation.Third,supplier production service incentive indeed affects,but this part of the role will influence by other factors.Fourth,in the process of new product introduction,market structure plays a role,different market structures affect buyer power and production services.By comparing directly lower wholesale prices,share production costs and RPM highlight the benefit of slotting allowance,such as convenience,easy to operate,broad scope,low risk etc,so as to provide explanation for the realistic existence of slotting allowance.The periodic conclusions from the theoretical model combined with the reality of the specific market situation and the current judicial cognizance about slotting allowance,we suggest that we should deliver the principle of rationality to deal with slotting allowance.