Introduction

 A distribution
channel alludes to a chain of businesses or intermediaries through which a
product or service flows till it arrives the end customer. This might encompass
wholesalers, retailers, distributors or the internet or network itself.
Channels can be classified into direct and indirect channels. A direct channel enables
the customer to purchase the products from the manufacturer, and an indirect
channel enables the customer to purchase the items 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 competitors

1)    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 the network of worldwide
distribution including Australia 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 the end customer, 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, even in Australia. Moreover, not just from their own
distribution channels like E-commerce, or internet business, yet in addition
from 3rd party channels.

 

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, Australia and the 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. In Australia, all finished goods of Hermes have
been sold only their conventional stores, and they do not have the desire for
web-based or online shopping. The distribution channel 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.

 

 

Longchamp
distribution channel recommendation

1)    Direct
distribution channel (web-based channel) – a direct
distribution channel refers to a circumstance in which the producers offers
their products straightforwardly to the end customer without any assistance of
intermediary. A direct distribution channel may include direct sales, internet
sales like mail order, yet does not include any type of wholesaler other than
the first producer.

I recommend Longchamp to distribute Pilage
leather Nylon ladies bag directly to the end customer with the connection of
web-based channel due to several advantages. Since there are no intermediaries
involving distribution process, Longchamp will be able to generate more
revenues, because Longchamp does not need to concern about the commission or
sharing profits. In addition, direct distribution channel by means of the
internet is more convenient for clients and potential customers and accessible
24 hours every day. Also, numerous clients value the chance to give profits
straightforwardly to Longchamp. One of the Longchamp’s biggest competitors in
Australia market, Hermes is currently not operating web-based or internet
distribution which means this will raise Longchamp’s overall competitiveness in
Australia market if there is their own website for online shopping.