The only difference is a notably lower price point. Its attributes are comparable to the inventory on the shelf (same material and volume). This means any changes in the price of one product will affect the sales demand of all other comparable inventory.įor example, say a retailer introduces a new brand of water bottle into the existing product mix. Setting the wrong price for a new product can have immediate and costly consequences.Ĭustomers determine the value of a product in the context of the price range. Here are the main causes of product cannibalism to watch out for: Pricing This is why understanding and awareness of potential triggers are not only important but essential to retail success. Unfortunately, by the time retailers notice there is an issue, it is already too late for damage control to be implemented. Reasons for product cannibalismĬannibalization can be extremely damaging for a retailer – regardless of size or complexity. Let’s dig a little deeper to find out what they are. Typically unexpected, this situation can be extremely detrimental for retailers and also has the potential to create additional issues such as:įortunately, there are certain triggers that can lead to product cannibalism and if known and monitored in advance, can help prevent it.
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