Power
Many studies of the relationship between retailer and suppliers have been based around the concept of distribution channel power and control . The assumption is that the greater the market share of an intermediary or producer, the greater the power of that channel member and therefore the more control they have over the exchanges that take place within that distribution channel. The rise of retail power through the process of market concentration and increased own-label product development has been well documented in both trade and academic sources . This power combined with the more recent phenomenon of the category champions is polarizing consumer goods markets into a combination of power retailer supplier partnership emporiums and regional specialists, with the medium sized business finding it more and more difficult to offer meaningful retail experiencers in between.
Market share, however, is not the only determinant of power in the distribution channel. Strong brands are also able to exert considerable influence over retailers supply selection strategies irrespective of the retailer's market ranking. The strength of a brand's appeal to consumers may override other product selection criteria, such as quality or price and so the retailer effectively has no choice in terms of supply source other than to deal with the branded goods manufacturer of distributor for that brand. In mail order catalog for example Levi's might be allocated one whole page for their denim products, but the final product selection is left to the supplier rather than the retailer