Trade spending refers to any spending made by companies in order to promote their products among buyers in a retail store. This might involve paying retailers to showcase their products prominently on their shelves to promote sales by increasing product visibility.
Naturally, consumer goods companies are the ones that allocate a significant share of their overall budget for the cause of trade spending. Some critics have argued that trade spending by large companies leads to unfair competition.
Supporters of trade spending, however, believe that it offers an opportunity for any company with a promising product to increase its visibility.