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Exclusive distribution agreements are distribution rights granted between a distributor and supplier company. Both parties agree that the distributor will give exclusivity rights to the supplier to sell certain products or services instead of non-exclusive rights.
Exclusive distribution strategies refer to making a deal with a retailer to only sell your product or service through their specific storefront. This strategy works especially well for high-priced items with high brand recognition, like Apple products.
An example of exclusive distribution is Apple solely authorizing ATT to be the distributor of the iPhone to end users.
Typically the types of products that work for exclusive distribution are going to be luxury goods or large ticket items. In other words, things with big prices.
An exclusive distribution agreement is an agreement between a distributor company and a supplier company that grants the distributor exclusive rights to sell the suppliers goods. This means that the supplier agrees to now allow another distributor to sell its goods for the duration of the agreement. Exclusive Distribution Agreement: Definition Sample contractscounsel.com exclusive-distributio contractscounsel.com exclusive-distributio
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Businesses that carry luxury brands often utilize exclusive distribution as a method of enhancing their brand images. Other types of products that utilize exclusive distribution are automobiles, womens apparel, major appliances and furniture.
An exclusive distribution contract means only one distributor is appointed in a specific marketplace by a supplier. As part of the agreement, the supplier promises not to allow the distribution of the products by any other party in the given market area.
Selective distribution is common in televisions, furniture and home appliances brands. On the other hand, exclusive distribution is common in designer ware, automobiles and even domestic appliances.
Suppliers may enter into exclusive distribution agreements to preserve their brands aura of exclusivity. For example, Lamborghini is aware that having dealerships all over a certain region will lower the prestige associated with its brand.
Exclusive Distribution Strategy Example An example of exclusive distribution would be if a luxury brand like Apple chose only to offer its newest Apple Watch at Best Buy locations. The reduced availability would likely increase the products value to the target buyers.

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