Introduction A distribution channel alludes to a chain of organizations or intermediaries through which a product or service flows till it arrives the end customer.
It might encompass wholesalers, retailers, distributors or even the internet or the network itself. Channels can be categorized into direct and indirect channels. A direct channel allows the customer to purchase the products from the manufacturer, and an indirect channel allows the customer to buy the products from wholesaler or retailer. A distribution channel is a way by which all products and services should go to touch base at the end customer.
Then again, it is likewise used to depict the pathway that payments make from the end customer to the first seller. Distribution channels can be short or long, and rely upon the total number of intermediaries required to convey an item or service. Nonetheless, goods and services are often delivered through various channels, a mix of short and long.
While expanding the quantity of manners by which a customer can find the products can increase sales, it also can cause a complicated system that occasionally makes difficult to manage distribution channels. Also, the longer the distribution channel, there will be less profit a manufacturer would generate from sales because of the intermediary charges for every single service. Longchamp and the competitors1) Swatch Group – an international group where manufactures and offers watches, jewelry, watch developments and sub-components for the finished watches. Their products are distributed mostly by network of worldwide distribution that has been chosen by group subsidiaries, or by operators who have been approved by subsidiaries or specifically by the group’s headquarters. In any case, in order for Swatch Group to maintain an immediate connection with end customers, they made a retail area that creates worldwide retail methodologies and new ways to deal with customer markets, including mono-brand stores and a system of multi-brand watch and jewelry boutiques.
2) Hermes of Paris Inc. – for the distribution strategy, Hermes’ key methodology is the retail condition. The organization operates in the global market, such as Europe, France, Japan, USA and Asia Pacific, where the fashion industry is extremely active. Hermes of Paris has distributed their products through over 250 monopolistic stores all over the world which can strengthen its brand image. All finished goods of Hermes have been sold only their conventional stores, and they do not have desire for web-based or online shopping. The distribution in numerous global upscale such as Japan, China, USA and Europe are an international strategy of Hermes to extend client base and increment sales revenue.
Particularly, China is recently becoming the biggest fashion market in the world.