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.
How they do it: Customers are able to book flight fares directly at the official Ryanair website. The website was launched in 2000, and within a year accounted for three quarters of total sales. Today, 99% of sales occur on the Ryanair website.
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How they do it: Lufthansa sells its products and services through 3rd parties such as travel agencies but also offers its customers a direct way to book. All flights can be booked on their website or via their phone hotline.
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How they do it: American Airlines sells a large portion of their tickets directly through their own website channel instead of 3rd party travel agencies. This allows them to cash in the retail margin on their own.
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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.
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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.
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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.
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.
