2XU, a leading athletic apparel company, began noticing issues with minimum advertised price violations online about 3 years ago when they started selling directly to Amazon. 2XU was over exposed in the market and their brand and margin were suffering as a result. After partnering with ORIS Intel in early 2015, 2XU has seen a significant decrease in MAP violations and number of Amazon sellers, as the company has targeted ideal authorized dealers to work with and reduced the number of anonymous sellers distributing their products. They’ve even used this success as a springboard to create a new strategy for managing their channel mix to drive sustainable revenue and grow margin.
By Ryan Marth, Robins Kaplan L.L.P To succeed, manufacturers must know how to manage and control the relationships with suppliers, retailers and their customers. Minimum advertised price (MAP) policies are a popular tool to accomplish this goal. MAP policies particularly benefit manufacturers who rely on service and brand recognition to make their products a success.