It is not the point-of-sale as such causing marketing experts sleepless nights. And it’s also not the loyalty towards retailers, but rather the absurd adherence to outmoded distribution structures and a lack of trust into the brand. That it can hold its personality image even if different distribution costs lead to different consumer prices. The price is one criterion that plays an important role during the purchasing decision but it is also only one component in regards to the positioning of the brand on the market. The consumer nowadays possesses the knowledge that allows him/her to assess, why one and the same brand product does have a different price at the discount market than it has at the retail shop. Or why a polo shirt in a factory outlet store is thirty percent cheaper than in a store on one of the grand shopping streets in Paris, London or Munich.

The old trade architecture of the manufacturer via the importer/exporter, wholesale and finally retailers, the department store or mail order shop, has long been dissolved and cannot be conserved or even be defended.

For each brand and the products which are tied to it, it is imperative to pursue tailor-made distribution structures. It is decisive that the path to the consumer conforms to the essence of the brand and that they allow it to come across in a way that satisfies the expectations of the consumers. Customers accept that the different path from manufacture to arrival entail different costs. Otherwise, imported pineapple and freshly plucked Darjeeling tea could not be sold in Europe.

That customers appreciate short delivery paths and reasonably priced bulk purchasing in regards to products of daily use is a fact, because both leads to lower handling costs. However, this fact should not lead to the conclusion that it is prohibitive to offer brand products accordingly.

The factory outlet, accepted in many countries of the world, is still being viewed critically in Continental Europe. At the same time it fulfils an important function, supporting the retail price. Whatever can’t be sold efficiently at retail due to seasonal or other reasons, either has to be offered with a corresponding price reduction or an alternative path to the consumer has to be taken. The factory outlet is the alternative path.

Tailor-made distribution strategies are always also selective systems, where the interests of all market participants are sorted. Brands never get into the way. To the contrary, they are the regulatory basis of any successful distribution strategy.

Important are the versatile services a brand renders for its product. From the personality image, the profile, the tenor of the accompanying message, its awareness, its history all the way to its position in the market, which in the end influence the purchasing decision. The price only plays a secondary role. It is beyond dispute that the price can be tempting. But even a tempting price calls for a correspondent counter-value.

For the enlightened, knowledgeable consumer the presence of brands in discount stores and factory outlet stores is a matter of course. To dispute this topic is basically unnecessary. And wherever this discussion rises up one has to suspect rather insecurity, fears and self-imposed constraints; and thus, a situation where the value of the brand is not clear or one is not dealing with a true brand.

We develop strategies or are working on strategies which always have a tailor-made distribution statement for each brand. The selection of the point when and where the brand and consumer meet, has to be meticulous and uncompromising.