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Multi-Brand

Multi-brand distribution is the common brand industry term for distribution via a third-party retailer or e.commerce platform.At the same time, it is somewhat the brand industries’ love-hate distribution channel. We hate it because the brand can’t fully control its appearance to the consumer. And we love it, for its continuing high financial attractiveness. Profits from multi-brand wholesale distribution are mostly stronger than from “direct to consumer” distribution. And exactly that is the strategic challenge for many brands, the share of multi-brand distribution is too high and investments in direct to consumer channels are small and late.Be it quality online platforms or excellent department stores, both multi-brand distribution channels will play a long-term strategic role in the future of brand distribution.We share in this section brand success stories, outline trends and what drives wholesale performances, both strategically as commercially.

Growing with Brand Distributors in Partnership

Global brands use wholesale & retail distributors to enter foreign markets. This article provides tips on how to avoid pitfalls and best manage distributors.

Jan 2014, Berlin: Three years earlier, a French outerwear brand* signed an exclusive partner store distribution agreement for southern Germany. Visiting the newest German store, the French CSO realises locations continue to be rather ‘cheap’ and off the High Street. The distributor argues that the brand doesn’t pay High Street rents.

May 2014, Dubai: The CEO of a Swedish womenswear brand* is on vacation in Dubai and realises his long-time Middle East distributor is also managing 10 other brands. The brand’s previously exclusive position is diluting as the distributor’s new favourite brands get the better locations in the new malls opening up. (more…)