A scrutiny of practices prevailing in the market shows that a firm can practice exclusive retailing to varying degrees of exclusiveness and in combination with non-exclusive retailing.
Bata, for example, has 900 company owned exclusive shops, 120 franchisee exclusive shops and 600 market extension program dealers, who are semi-exclusive. In addition, it has separate, non-exclusive wholesaler retailer system consisting of 200 wholesalers and 12,000 dealers.
Ready-made garment brands like Louis philippe, Van Heusen, and Allen Solley were, to start with, marketed through exclusive outlet/franchise showrooms. But after some time, the companies concerned voted for a policy of semi-exclusiveness. They opened the door to multi-brand textile shops. They also adopted the shop-within-shop concept.
In the matter of size, exclusive retail networks can range from very small to very huge depending on the nature and â€˜Classâ€™ of the product/brand. Pierre Cardin, for example markets its products through just eight exclusive shops in India. Reliance (Vimal), has a network of over 2,000 odd exclusive Vimal showrooms.
Today, many super stores reserve special areas in their shops exclusively for particular brands. These are called shops-within-shops. The Louis Philippe line, for example, is sold through the shop-in-shop in the super store Shoppers stop.
Philips corners: Philips is another good example of company using the shop-in-shop concept. It has established its â€˜shops-within-shopsâ€™ in many stores and named them â€˜Philips Cornersâ€™. In fact, Philips overcame the problem of not having exclusive showrooms by voting for the shop-in-shop concept. It gained good visibility for its products in multi-brand outlets. â€˜Philips Cornersâ€™ helped in keeping a good presence in outlets where consumers went to compare various brands. The internationally standardized colors, shelves and display windows of the â€˜Cornersâ€™ helped Philips to cut across the clutter.
Advantages of exclusive retailing
* Helps the firm get best locations
* Superior store image
* Uniform store image
* Spreading awareness about the company and its brands
* More appealing visual merchandizing
* Full product range of the company can be stocked and displayed in all outlets
* With exclusive outlets, the firm can avoid margin wars
* Facilitates better customer service.
* Facilitates building store loyalty.
* Creates special enthusiasm or the companyâ€™s brand at the retail level; multi-brand outlets cannot create such enthusiasm for a particular brand.
* Enables better control of the outlets.
In conclusion the retail marketing in India and all over the world is undergoing revolutionary changes like the exclusive retailing, shop-in-shop, semi-exclusive concepts. The retailers are doing away with middle men concept and going through exclusive route so that they can market their goods at competitive and lower prices.