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ARTICLE · 27 AUGUST 2019

The Horizontal/Vertical Dichotomy Presented By The Dual Distribution Model

AZB & Partners
AZB & Partners
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AZB & Partners

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Deploying an efficient distribution strategy is essential for enterprises to sell their products / provide services to its customers.

IndiaAntitrust/Competition Law

Introduction

Deploying an efficient distribution strategy is essential for enterprises to sell their products / provide services to its customers. Often, a manufacturer's distribution strategy may involve multiple channels of distribution, i.e., multi-channel distribution. This helps enterprises make their products/services more widely available and concurrently adds to the convenience of the consumers who have multiple options to make their purchases. Manufacturers often choose to sell through a distribution network and simultaneously supply goods to their customers directly – this is referred to as a dual distribution model.

It is common practice for manufacturers of white goods, electronic gadgets, apparel, footwear, accessories, etc., to distribute their products through multiple channels including: (i) company showrooms (directly to consumers); (ii) multi-brand retail stores (through retailers); and (iii) e-commerce platforms. Such strategies are becoming

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