Overcome Dumping Market Price
How price dumping affect the market?
Dumping is a form of unfair competition as products are being sold at a price that does not accurately reflects their cost. Selling a product lower than the standard retail price is known as price dumping amongst the domestic market. Businesses that sell or distribute their goods through multi-layered agents or resellers sometimes experience this circumstance.
Consumers would likely be in advantage of price dumping as they would be able to get the same product at a lower price by different sellers. Distributors that dump their price usually made huge amount of sales than those playing by the book. The biggest threat now hits the manufacturer or business owner as their product’s prices vary on the market which will affect their product and brand’s trustworthiness and reputation.
Consequently, distributors that are selling according to market price will tend to stop being the product distributor which resulted to the business owner having lesser distributors. What’s worse is the fact that the product and brand’s image will be largely affected by this price dumping activities.
Could you trust brands without proper market price?
Putting into consumers perspective, the baby formula you are feeding your child are priced at RM 69.90 on your local supermarket shelf but the exact product appears to be sold at RM 49.90 on the online market. What would you think of the product? Would you buy online considering of its lower price? Are you sure it is genuine and safe for your baby? Now, what do you think of the brand? Could you trust the brand enough to buy it online or even on the local supermarket without doubting the slightest chance that it could be a counterfeit?
Anti-counterfeit and traceability solution for price dumping
The biggest question mark hitting consumers mind upon seeing products being sold with a much lower price would be, “Is it genuine?”. So how can you as a business owner ensure that all your distributors are selling your products according to the market price? How can you also convince your consumers of your product authenticity?
This is where having anti-counterfeit and traceability solutions would come in handy. Consumers would be able to validate the product authenticity and gained product information and origin by simply scanning the product QR Code. As for manufacturers, in case of price dumping, anti-counterfeit would assist you to determine whether the product is genuine, and if so, traceability helps you to simply determine which distributors are playing with the price.
