Channel cannibalization refers to the phenomenon in which a company’s new product or service competes with its existing offerings, resulting in a decrease in sales and revenue for the original products. This can occur when a company introduces a similar product through a different distribution channel, causing customers to switch from the original product to the new one. This can lead to a loss of market share and profitability for the company, as well as confusion and frustration for customers. Effective management and strategic planning are crucial in mitigating the effects of channel cannibalization and maintaining a strong and cohesive product portfolio.