Large retailers are often portrayed as margin-grabbing ogres. But, if they are to increase customer loyalty, expand internationally and maintain profits, they need closer ties with big suppliers more than ever. Increasingly, both suppliers and retailers are recognising this.

The Routes to Market Association dedicated its November 27 meeting to looking at how to forge these closer links.

The day was hosted by Electrolux, and speakers included Marcelo Bravo, the head of new business opportunities at Boots, Peter Nolan, vice-president of sales at Electrolux Europe and Sjaak Vermeulen, who heads up HP’s retail arm in Europe.

Firstly, Michael White, director at management consultancy VIA International, argued that both supplier and retailer have more to gain by working together to ensure that the consumer has a unique experience. He sees a move away from confrontational short-term transactions, based on price, towards a model where retailer and supplier work together to create and fulfil consumer demand.

But how does this really work out for the supplier? Both HP and Electrolux are trying hard to form deep relationships with retailers. How do they do this? What works and what fails? What are the frustrations?

There are plenty of the latter. Peter Nolan at Electrolux says: 'Many electrical retailers are expanding internationally. But they do not appreciate the differences between consumers in, say, France and Germany.’