Selective distribution is a distribution strategy that consists of selling products only in a certain number of points of sale (both physical and online).
These types of strategies do not seek to make the product available in as many points of sale as possible, but rather the objective is to whatsapp number list detect which are considered strategic because they meet certain requirements.
Selective distribution strategies have both advantages and disadvantages, and while they may be the key to success in certain industries , they do not work for everyone.
In this article we tell you when you should apply this type of distribution and we give you some real examples so you know what type of companies put it into practice.
Why is selective distribution important?
Selective distribution is a very interesting and recommended strategy for those brands for which quality is a hallmark of their products and they want to convey a sense of exclusivity .
By making products available to the public only in very specific locations, their perceived value increases, with the target audience being upper-middle and upper-class people.
The luxury fashion, high-end technology and luxury cosmetics sectors are the ones that most often put this strategy into practice.
Advantages
- By reducing the number of points of sale offering the product, the costs of distributing the merchandise through the different distribution channels are reduced. The money saved can be used for other purposes such as improving product quality or customer service.
- For that very reason, brands can make a higher profit margin on each sale.
- By more selectively choosing the outlets where products are sold, brands can also more closely control how the product is presented and the attention given to the customer. This leads to increased quality .
- On the other hand, as we have attributes to consider for effective customer journey mapping what they already said, with this strategy the product is perceived in a more exclusive and attractive way , increasing its perceived value.
Disadvantages
- One of the main disadvantages australia database directory of selective distribution is the reach of the products, which can affect the quantity of sales. However, since the products are exclusive and often have a high price, this can be compensated.