Exclusive distribution channels are most likely in place when it is difficult for new firms to gain access to retail space.
The key advantages of a distribution network include lower costs, increased collaboration and transparency, a broader client base, and quicker expansion. The process of joining a distribution network may appear to be onerous and complicated.
It might make it simpler to gain access to a premium channel. When the retail industry is highly fragmented, selling expenses are reduced. Consumers gain from distribution channels because they have access to a wider range of goods. Without these channels, consumers would only be able to purchase goods directly from manufacturers, which is not a realistic option. Although not always, channels may bring down the cost of consumer goods.
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