Increasing buying power of the retail sector

The strong consolidation process in the retail sector as well as the increasing importance of private labels favour the negotiating position of retailers vis-à-vis manufacturers of consumer goods. Against this background, the Markenverband commissioned DIW econ, the consulting company of DIW Berlin, to investigate the effects of the increasing buyer power of the retail trade on its suppliers, especially the manufacturers of branded products. The study includes both a theoretical analysis of the causes and consequences of buyer power and an empirical analysis based on a survey of the Markenverband’s members in the consumer goods sector.