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: Dollar Shave Club only sells through its website, eliminating vendor margins, allowing to bring cost savings directly to the customer.
Learn more about Dollar Shave Club →
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: 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.
Learn more about Freitag lab.ag →
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.
Learn more about Carnegie Steel →
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.
Learn more about American Express →
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