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: 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: 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.
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How they do it: Nike operates brand stores in Flagship locations to present their latest products. These stores help the company shape the brand image directly and design an experience around their products. The stores also have special offers of customization of products.
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How they do it: IKEA’s products are only available in their physical stores and on their website. The stores are standardized in terms of offering and design. The inventory in the stores, in the catalogue and on the website are identical.
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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.
Learn more about Lufthansa →
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