Exclusive distribution is a type of distribution strategy where a manufacturer or supplier authorizes only one distributor to carry out distribution within a specific region. The distributor becomes the sole authorized seller of the manufacturers specific products, and no one else is permitted to distribute the brand or product that the exclusively appointed distributor is assigned to distribute within a given region. Exclusive distribution is usually reserved for luxury items or high-value products that require trained manpower to sell the products.
Some key features of exclusive distribution include:
- Limited availability: Exclusive distribution limits the choice of outlets that customers can use to find or buy a product.
- Sole authorized seller: The distributor chosen by the producer is the only one that owns the rights to sell the product.
- Geographical area: Exclusive distribution is implemented by the producer through only one channel, providing the products to consumers in a specific geographical area.
Exclusive distribution helps to keep the firm focused, secure the distributor of the brand for the firm, and save the firm. It is usually seen with high-end and luxury products.
