Direct Selling 12#
Direct selling refers to a scenario whereby a company's products are not sold through intermediary channels, but are available directly from the manufacturer or service provider. In this way, the company skips the retail margin or any additional costs associated with the intermediates. These savings can be forwarded to the customer and a standardized sales experience established. Additionally, such close contact can improve customer relationships.
Examples: Iconic Cases
How they do it: H&M’s products are exclusively distributed through its chain of retail stores, catalogues and online store. This allows the company to have full control over their value chain and profit from earning the full retail margin.
Learn more about H&M →
How they do it: Starbucks does not offer and franchising opportunities and only operates its own stores. Via its retail locations, it sells directly to customers, resulting in higher margins for the company.
Learn more about Starbucks →
How they do it: After seeing the success from opening a first concept store in Paris, Nespresso today has more than 700 boutiques selling Nespresso coffee machines, the coffee capsules as well as accessories. In addition, customers can try new flavours in the store.
Learn more about Nestlé Nespresso →
How they do it: Lego has a network of brand stores, selling only Lego products and accessories. These are usually placed in popular locations and include exhibition of complicated Lego construction consisting of thousands of individual Lego parts.
Learn more about Lego →
How they do it: Harley Davidson has a range of brand store’s selling both its motorcycles as well as its brand merchandise. In addition it also has stores that focus exclusively on the brand and merchandise in popular locations such as malls and airports.
Learn more about Harley Davidson →
Below, the top industries for the pattern "Direct Selling" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Top Industries
57% of firms using pattern
33% of firms using pattern
24% of firms using pattern
All Industries
Below, the pattern "Direct Selling" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
Top Co-Occurrences
9 pattern co-occurrences
6 pattern co-occurrences
5 pattern co-occurrences