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: 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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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: Swatch operates its own stores worldwide. They also sell directly via their website, Swatch.com.
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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.
Learn more about Freitag lab.ag →
How they do it: Hilti’s direct sales model gives every customer a dedicated account manager. This not only allows the account manager to service and sell Hilti’s products fitted to the customer’s needs but also give the customer a one-stop purchasing experience. Hilti’s account managers are trained and visit its customers on site to support in all necessary steps to ensure a perfect product experience.
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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.
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