Why might a manufacturer struggle to find suitable intermediaries?

A manufacturer might struggle to find suitable intermediaries due to market saturation. When the market is saturated, there are many products vying for consumer attention, which can lead to a crowded distribution landscape. Intermediaries may be more selective in representing products, prioritizing those that stand out in a saturated environment. They often choose to work with manufacturers whose products have established strong demand or brand recognition. In a saturated market, the numerous options available can make it challenging for new or less well-known products to secure the interest of intermediaries, who must consider the competitive landscape and the probability of successful sales.

In contrast, high product demand typically works in favor of manufacturers, as intermediaries want to partner with products that are likely to sell well. Too many competitor options can lead to indecision rather than a direct struggle for intermediaries, and while new product introductions can be challenging, they are not tied to the difficulties presented by saturation in the market for existing products.