rice-conscious customers in the US who are used to checking MRPs are not finding it easy when it comes to purchasing snack items . Retailers are shying away from stocking snack items that have the manufacturer�s suggested retail price and consequently there has been a decline of these items in many credible and even branded retail outlets. Rising costs in terms of shipping, logistics and inventory management have spurred retailers to take this decision.

This might seem to be a passing phenomenon. Not retailing with the manufacturer�s suggested price could eventually lead to retailers falling out of favour with customers and manufacturers. But it is actually determining a new market order. According to a senior market research analyst at Euromonitor, the current market dynamics are not conducive to the traditional strategy of competing and locking in price. Rising production costs are compelling brands to raise their prices and pass on the costs. ... more