Why do most dealer networks collapse in India?
Published
Many people think the problem is product quality. But in real markets, dealer networks often collapse because of price wars.
This usually starts when too many dealers are appointed in the same territory. Competition turns into discounting — and discounting turns into a price war.
In distribution business, two rules matter:
- Clear Territory
- Price Discipline
If you're building a product brand or dealership network, these principles are critical for long-term stability.
Watch the short video here: https://youtube.com/shorts/KbrJTQPx2lk
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