As we already know there are 3 types of channels in distribution strategy of fashion and luxury:
- The Retail Channel (Direct Channel, Property and Franchised) – the directly operated channel with DOS (directly operated stores) and franchising and a Sell-Out logic and B2C prospective (Business-to-Consumer)
- The Wholesale Channel (Middleman), where there are trade partners that are managing distribution activities for the brand with a Sell-In logic and B2B prospective (Business-to-Business)
- The Transnational Channel where geographical aspect is not so relevant because there are global formats such as Travel retail with Duty free stores and E-commerce with online sale platforms
Lets identify retail formats in this three channels. Aspects to consider in each format are structure and appearance: location, size and assortment.
Direct, Retail channel presents 4 important formats for distribution, ordered by dimension (the size of in-store assortment and possibility to control the brand’s image):
- Flagship Store. The flag of the brand. Usually it’s a huge space, the leading store within a group, the biggest in size and stock holding, used as benchmark, where the brand always can put their brand strategy into visuals. Located in a top global fashion capitals, main street level only. It can be really considered as a Theatre of the brand, owned and managed directly by the company. Flagship Store offers: the brand’s global image and lifestyle concept through their range of all brand product categories presented in this store. Maybe, there will be even a coffee-shop and/or leisure areas, expositions or art installations, all managed by the brand.
2. Self Standing Store – a boutique of the brand, located in the main city streets with high traffic, smaller than the flagship store, it is also owned by the brand and has a large selection of the brand’s assortment.
3. Shop-in-Shop – The store will be found inside an independent retail entity, shopping mall or department store. The brand will offer here the main product categories and will have people highly dedicated to brand’s sales politic and comfortable location approach. The Store is usually medium-sized.
4. Factory Outlet – directly owned and managed by brand.