exclusive distribution


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exclusive distribution

a DISTRIBUTION strategy employed by a supplier of a product in which only one RETAILER or WHOLESALER is permitted to sell that supplier's product in a particular area or territory. Designated exclusive sales territories may be defined narrowly (city by city) or more broadly (region by region). Exclusive distribution systems can enable physical distribution costs to be lowered and achieve a greater retailer commitment in boosting sales (especially if this is backed by an EXCLUSIVE DEALING arrangement). On the other hand, if the retailer has an insufficient number of shops then, compared with a multiple-retailer approach, sales potential could be limited.
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