This little piggy went to market

French marketIn Paris, weekly markets are protected by French law (Schukin, 2016) supporting the livelihoods of farmers and producers. Farmers markets are popular for many reasons, access to quality, organic, fresh produce with a perception of low “food miles”. While there has been a tendency to assume that local food is a solution to the problem of food miles (Coley, et al., 2009) , in reality distribution and logistical economies of scale debunk this assumption. Goley et al, conclude that if a customer drives a round-trip of more than 7.4 km purchase organic vegetables, their carbon emissions are likely to be greater than the emissions of cold storage, packing, transport to a regional hub and transport to the customer’s doorstep used by large-scale suppliers.

The golden Triangl

Triangl is big business. Erin Deering and Craig Ellis have achieved in a few years what many take longer to achieve. (TOLJ, 2015) Previously, I have discussed the use of Instagram as their major marketing medium. An area many overlook is where they set up business and the way they sell and distribute their product. The plan was to design, manufacture and wholesale their swimsuits. Within a few months they knew their business model was flawed. “Erin was spending hours ringing all these boutiques, chasing small outstanding accounts” Ellis says. “The return just wasn’t there.” (James, 2014) Triangl.com is now the only sales channel direct to the consumer maintaining control of price, stock and customers.

Middle earth

Given that “in many instances distribution service is deemed more important than product quality or price in establishing customer satisfaction” (Daugherty, et al., 1998) setting up business in Hong Kong was paramount.world_super_map_full

They (Deering & Ellis) knew their future business would benefit from being close to manufacturers in China and based mid-way between the northern and southern hemispheres from a shipping point of view. (A Bikini A Day, n.d.)

Partnerships (Revenue Sharing)

May and Sculli list trust, quality, value and risk as “must” characteristics a business must achieve. (May & Sculli, 2006) As a result many manufactures/suppliers may choose to partner with an established retailer online space or via physical outlets who have established their reputation with consumers. A publishing company may utilse the online expertise of Amazon whilst Unilever has relationships with Woolworths and Coles.

Who needs Bricks & Mortar?E-commerce V BM

In today’s retail landscape, a traditional bricks & mortar shop front is not always required. Expedia, Booking.com and Airbnb don’t. Hotels and guest houses do. Before the internet hotels relied on brochures, travel consultants agents and sales teams.

Hotel Distribution

Now hotels utilise on-line channels like Expedia to sell their rooms, some too much, which then can bring power conflicts into play. These websites demand rate parity resulting in hotels losing control of their pricing structures important in maintaining profit margins across the various channels.

Multiple distribution systems

Woolworths own Dan Murphy’s, a liquor retailer focusing on bigger stores in less locations and BWS, who’s stores are smaller in many locations, usually next to a Woolworths supermarket. Vinmofo, (not owned by Woolworths yet) only sell wine on-line. The subtleties are in the consumer requirements. BWS offers a homogenised range and convenience. Vinmofo range is more heterogeneous but you can’t stop in on your way to a restaurant. Dan Murphy’s is more a balance of both.

A foot in each camp

On-line sales can suit some businesses, however we humans are a tactile lot and many traditional shop front businesses are running dual strategies with the advent of the internet.

Georgie Hobart, founder of Hobes, says the easy fit of her shoes makes them perfect for on-line sales, she goes on to say “The nature of the products, because of the materials we use, they come up much better in real life than they do on-line,” she says. “The two work really well together.”  (Waters, 2016)
Likewise, Premier Investments, owners of  smiggle_logo  said it can capture customers beyond the limited physical store numbers in the start-up phase. (Smith, 2015)

The path to success is the path of least resistance

Ultimately, to be successful in distribution you need to get what you sell in front of customers and enable them to purchase it easily when the want to.

Kevin Robe

Student ID: 212386109

Bibliography

A Bikini A Day, n.d. A Bikini A Day. [Online]
Available at: http://abikiniaday.com/designer-profile-triangl-swim/

Coley, D., Howard, M. & Winter, M., 2009. Local food, food miles and carbon emissions: A comparison of farm shop and mass distribution approaches. Food Policy, Volume 34, pp. 150-159.

Daugherty, P. J., Stank, T. P. & Ellinger, A. E., 1998. Leevraging logistics/distribution capabilities: The effect of logistics service on market share. Journal of Business Logistics, 19(2), pp. 35-51.

James, C., 2014. Sydney Morning Herald. [Online]
Available at: http://www.smh.com.au/business/small-business/startup/is-this-the-worlds-hottest-bikini-20141208-122gbl.html
[Accessed 04 May 2016].

May, S. W. & Sculli, D., 2006. The role of trust, value, quality and risk in conducting e-business. Industrial Management & Data Systems, 102(9), pp. 503-512.

Schukin, A., 2016. The Culture Trip. [Online]
Available at: http://theculturetrip.com/europe/france/paris/articles/paris-life-hacks-better-cheaper-easier/
[Accessed 15 May 2016].

Smith, M., 2015. Australian Financial Review. [Online]
Available at: http://www.afr.com/business/retail/solomon-lew-says-smiggle-success-all-in-the-planning-20150918-gjq2o3
[Accessed 10 May 2016].

TOLJ, B., 2015. Daily Mail. [Online]
Available at: http://www.dailymail.co.uk/news/article-3296219/Owner-Triangl-one-eight-women-richest-Australian-women-40.html
[Accessed 01 May 2016].

Waters, C., 2016. The Sydney Morning Herald. [Online]
Available at: http://www.smh.com.au/small-business/entrepreneur/if-the-shoe-fits-australian-shoe-designers-defy-the-odds-20160412-go4hjx.html
[Accessed 30 April 2016].

 

 

 

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