Distribution Channel

Topics: Marketing, Retailing, Supply chain Pages: 3 (835 words) Published: December 6, 2012
One of crucial elements in success of clothes retailing is how the company use their distribution channel decision and strategies. This essay will study on Hennes & Mauritz's (H&M) , the Swedish-owned globally famous fashion retailing and research on how they deal and rely on their distribution channel partners. Unlike their competitors such as Uniqlo, Forever21, ZARA or GAP ,H&M has implemented a unique and efficient distribution channel strategy to increase their level of competitiveness and cost effectiveness. First off , clear understanding of H&M product philosophy and strategy will assist us to have better comprehension about H&M distribution channel decision. Similarly to ZARA or other fashion retailers ,H&M has already selected their target ,segment of their fashion consumers market. In 2004 , H&M declared their philosophy that said "Fashion and quality at the best price" H&M aggressively compete with competitors by making varieties and differentiations on their product expanding product range from updated basic and down-to-earth style to cutting-edge high fashion trends.

In general, Distribution channel are the 4th P of the 4P’s, meaning that Marketers need to find or create the place or channel for transferring of physical delivering the final product to the market and easily access and available for target customers. A distribution channel refers to the type of middleman or linkage between producers and customers. A one-channel distribution network involves only the retailer between producer and consumer. Direct distribution occurs when the producer directly supplies the product to the buyer. To select the distribution channel that ‘s suitable for company , There are many factors to take into considerations, including the type of product. While not all clothing retailers use direct distribution models, H&M and its competitors in the low- and mid-range clothing market use this model to maintain low costs and...
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