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: 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.
Learn more about Hilti →
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.
Learn more about American Airlines →
How they do it: Dell offers its personal computers and accesoires directly on their website, ready to be configured individually and shipped to the customer’s location.
Learn more about Dell →
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: 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 →
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