Distribution Channels

In: Business and Management

Submitted By logistics302
Words 746
Pages 3
istribution Channels at Clothing Retailer Hennes & Mauritz

A key ingredient in retailing success is the strength of a company's distribution channels. Kerry Capell's (2002) Business Week article looks at Sweden-based Hennes & Mauritz's (H&M) sourcing and inventory management strategies and their reliance on distribution channel partners. H&M has developed a unique distribution channel strategy to compete with better entrenched retailers including Gap, Old Navy, Zara and FCUK.

H&M Product Strategy

Understanding H&M's distribution strategy requires a clear understanding of their product philosophy and strategy. Like Gap and other clothing retailers, H&M markets to a particular segment of the fashion consumer market. H&M's philosophy is "Fashion and quality at the best price" (H&M, 2004). H&M keeps up with its competitors by providing a variety of styles from "updated classics and fashion basics" to cutting-edge fashion trends (H&M, 2004).

Kotler defines the product as a combination of goods and services (Kotler et al, 2001). H&M seeks a product edge by providing affordable fashion lines similar to its competitors, but with a "fast turnaround" from design to production to sales floor (Capell, 2002). Capell focused on this integrated distribution channel in his article.

Distribution Channel Outline

Marketers often refer to the fourth P, place, as placement, logistics or distribution. Marketers must create a place or a way for logistics and physical delivery to get a product to market and into the hands of target consumers (McColl-Kennedy and Kiel, 2003). A distribution channel refers to the type of intermediary or linkage between producers and consumers. 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. The choice of…...

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