Channel distribution model
to distribute their products to consumers, companies that use 3 types of distribution channels.
First, the direct channel through product showrooms, sales to consumers. This channel type is mainly to advertising, product introduction, income information directly from customers, profit is not the goal of this channel. Is consumption accounted for 10%.
Second, information channels through retailers, here's retail stores have huge sales. Retailers if they take regular incentives and resellers with the commission of 1-2% of the consignments purchased. Is consumption accounted for 25%.
Thirdly, through dealer channels, retailers, this is the main distribution channel of the company, sales volume accounted for 65%, widely distributed. If the dealer take frequent in large quantities, apart from the mode of an agent they also enjoy other privileges as applicable deferred payments ... This is a huge advantage that the company building materials River Bottom are up compared with the competitors.
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