Future Of Retail: Brands Controlling Distribution Channels
The European Union passed a ruling earlier this week that allows makers of goods to select where they will distribute their products, a potential hit to online retailers.
In a move that potentially slows the Internet’s ascendancy within the retail landscape, the European Union passed a ruling earlier this week that allows makers of goods with less than 30% market share to select where they will distribute their products. The decision follows heavy lobbying by luxury brands that wanted greater say over their presence and aesthetic, aspects that are difficult to control in non-branded online environments like Amazon and eBay. As a result, many premium brands may choose to only sell their products with retailers that maintain “brick and mortar” locations where customers can physically interact with products and staff in considered spaces.