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: Carnegie steel and its affiliated companies pioneered steel technology by directly supplying large scale construction projects (e.g. Eads Bay Bridge) in the 1890s, an important proof-of-concept for steel technology.
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How they do it: Freitag’s products are mainly offered through their online store and their infrastructure of physical brand stores. The products are rarely sold in department stores. This gives the company great control over how their products are presented and enable them to deliver a holistic industrial manufacturing experience connected to the products of recycled materials.
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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: American Express markets its credit cards directly to end customers with targeted advertisement at events, in publications or also direct via mail.
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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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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.
