A local plush importer with product that looks very similar to major brand, category leading product is offering heavily discounted product. This is hitting retail at less than half the price of the established leading brand, and driving some confusion for shoppers and frustration for nearby retailers.
While suppliers need to do what they need to do to move stock, retailers in a well established and commercially lucrative category niche notice this and will remember it when ordering in the future.
There is little shopper loyalty to be found in business won solely on price.
I first noticed this situation when contacted by a couple of retailers who were frustrated that what to them looked like knock-off product was pitched nearby, challenging their $45,000 a year revenue from this category. Once they realised the supplier behind the move and that they purchased other product from them in a different category, they made some decisions.
I get that suppliers with an overstock situation need to move stock. This situation, however, feels different, even targeted against a competing brand.