‘I am not a brand, I am a wholesaler’: The forgotten role of brand in B2B supply chains

Abstract

The importance of a trusted brand seems to be underestimated by mid-tier players in business-to-business (B2B) supply chains. This paper analyses the role of branding for distributors in the context of a dynamic, competitive and disruptive market ie the lighting industry, as well as exploring the effects of changes in the behaviour and expectations of installers and contractors as the important customer group of electrical wholesalers. Interestingly, there is a dearth of research and data on the subjects of our research. We carried out personal interviews among 141 representatives of wholesalers and distributors and surveyed more than 2,000 electrical installers and contractors across five markets. We used a combination of correspondence and cluster analyses to evaluate the results of our survey and identified five distinct segments of electrical installers across the five countries. Our primary research reveals that price pressure is not the only major challenge facing wholesalers in the future. Adding real customer value through product and service innovations, adopting a customer-centric approach, and managing the transition to digital business are also important concerns. In light of these insights, developing and sustaining an appropriate brand proposition — one that includes knowing and catering to specific installer segments — seems important for electrical wholesalers. In this paper, the authors explain the four most important elements for a strong brand: a deep understanding of the customer, a strong value proposition based on the customer's needs, perfect execution of all customer touch points, and a performance management system that includes brand as a KPI.