**Charleston:** Kohler’s new showroom offers direct access to its full product range, prompting mixed reactions from distributors wary of potential sales loss and shifts in traditional supply chains amid a growing trend of manufacturer direct-to-consumer sales models.
Kohler has recently opened a new showroom in Charleston, South Carolina, as part of an expanded branding initiative designed to provide contractors and consumers with comprehensive access to the company’s full range of products in a single location. This move allows customers to explore and order specific fixtures directly, circumventing the limitations often encountered when purchasing through distributors who stock smaller selections. Some distributors have traditionally paid fees to display Kohler products within their showrooms, yet Kohler’s new approach of operating dedicated showrooms signifies a shift in how the brand engages with its customer base.
Within the distributor community, this development has been met with a mixture of concern and cautious observation. A source speaking to Southern PHC highlighted apprehensions that Kohler’s direct engagement with customers might draw business away from local supply houses. The source remarked, “Nobody’s going to be happy with this except Kohler. If it’s taking sales away from them, obviously it’s not going to have a positive impact on wholesalers.” The same individual added, “For all of them, it’s a point of frustration, but there’s still a mystery around it, too. When you talk about a strategy like this, distributors will be wary of ‘We’re going to take this direct and ultimately you’re going to get cut out of it.’”
One distributor who currently maintains a Kohler display expressed a sense of unfairness regarding the manufacturer’s strategy. Unlike distributors, who must adhere to strict display requirements, Kohler can modify entire showroom installations at their discretion, which this distributor perceives as a competitive imbalance.
The scenario reflects a broader industry concern, as distributors across the sector are monitoring manufacturers’ increasing use of direct-to-consumer sales models, often facilitated by online platforms or large retail chains. While these strategies may benefit manufacturers, distributors question their impact on the established supply chain and retail partners.
Despite these concerns, some distributors remain unperturbed by Kohler’s new retail presence. Two such distributors noted that Kohler has operated brand-specific stores for many years, suggesting that any significant changes resulting from this new showroom concept will unfold gradually, allowing distributors time to adjust to the evolving landscape.
At the 2023 Association of Independent Manufacturers Representatives (AIM/R) conference held in Birmingham, Alabama, industry stakeholders discussed the shifting dynamics of manufacturer and distributor relationships. Andrew Windsor, senior vice president of sales at Watts Water Technologies, addressed the gathering, noting, “A lot of the rules that we grew up with in this industry are going to change along with it. And we need our rep network and the rep network as a whole to be thinking more strategically about how they’re planning their business and how they’re running their business if they want to remain successful in the future.”
The conference underscored the necessity for distributors and manufacturing representatives to evolve their offerings and strategic approaches to maintain productive partnerships amid changing sales ecosystems. The Southern PHC is reporting that while the industry closely watches Kohler’s expansion in Charleston, the broader implications of such direct-to-consumer channels are part of a longstanding and ongoing transformation in distribution and manufacturing sales strategies.
Source: Noah Wire Services
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