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Manufacturer Pressures: Profit Margins Under Siege
Price Wars and Inventory Crisis:
H1 2024 saw 35% YoY surge in agents' inventory, with turnover days extending from 60 to 90 days, freezing working capital.
Intense competition and product homogenization have driven annual price declines of 5%-8% over three years.
Manufacturers impose unrealistic sales targets: While market CAGR is 4.3%, some demand 50%+ annual growth from agents.
Resulting inventory pileup:
Financial Squeeze Tactics:
70% face severe inventory overload.
50% report 30%+ profit erosion within a year.
Manufacturers arbitrarily raise wholesale prices and delay rebates.
Impact on agents:
