What is selective distribution?

Selective distribution is a distribution strategy that involves limiting the number and type of retailers that are authorized to sell a particular product. This means that only a chosen number of outlets are given the authority to distribute the product. This type of distribution is mainly used for high-end or luxury products such as designer clothes, watches, perfumes, and other luxury items.

Selective distribution is meant to help protect a brand's image and reputation, as it ensures that only reputable retailers are allowed to sell the brand's products. This strategy can also help to control the price of the product and prevent it from being sold at discount stores and other locations that might damage the brand's reputation.

Moreover, when a company implements a selective distribution policy, they have more control over how their products are marketed and presented to the public. They can train sales associates, provide detailed product information and merchandising instructions, etc. The company can also monitor how their products are being displayed, sold and deliver a consistent image to the market.

This distribution strategy is often used in industries like fashion, beauty & cosmetics, electronics, and luxury goods. Additionally, selective distribution is beneficial for companies that want to maintain a high level of exclusivity and product differentiation, ensuring that their products remain rare, unique, and aspirational.