How has the distribution channel changed?

The digital era has shifted the world from “shopping” to “click, touch to buy”.

Digital banking will take away the customers of the transaction offices. E-commerce floors will take away the customers of traditional stores. Enterprises will have to find an effective multi-channel distribution strategy. It is well known that it’s not allowed to choose between a traditional store and an online store, but both. The most important thing in managing this change is to treat different channels as complementary, not interchangeable. Each channel is more suitable for certain products, for certain groups of customers, or for certain ways of choosing and buying. Each business needs to rely on its own characteristics to find additional points and build around them.

How is it different from using online channels to add products?

VIP Industries is one of the largest suitcase manufacturers in India. Since 1971, the company has sold more than 60 million units worldwide, has a network of 1,300 retailers with 8,000 retail points in 27 countries. How to use more online channels without offending retailers and distributors? Using only online channels or using only retailers and distributors has unpredictable consequences.

How has the distribution channel changed?

VIP Industries solves this problem by selling more diversified online channels and allowing customers to customize products, such as engraving names or choosing unique and strange colors. Retailers only import certain models, often the best-selling models. These options do not affect the retailer’s revenue, do not compete with the retailer.

How do I use an online channel to add new customers?

QNB Finansbank of Turkey focuses on the segments serving corporate and retail customers. The bank has a fairly strong system of transaction offices.

When it discovered that I still left the individual customer segment empty, the new middle-class, tech-savvy, QNB had not come up with a convincing way of advertising to differentiate me from the rest of the banks.

To differentiate and serve customers proficient in this technology, QNB created a completely new brand, named Enpara, a completely electronic bank, no branches, no transaction offices, easy to use. and a focus on customer experience, in addition to existing traditional businesses. Within 1 year of its inception, Enpara had 110,000 customers and more than 3 billion lira deposits. After 3 years of operation, the rate of customer satisfaction is impressive at 99.4%.

How does using the online channel complement a new way of buying?

Kiehl’s has been a cosmetic brand since 1851. Since its inception, its strategy has been to not advertise, to create a remote, distinct brand image. The brand aims to grow 15% a year in revenue over the next 5 years while maintaining the brand image.

In the digital transformation trend, Kiehl’s also digitally converts, but still retains its brand image. Instead of selling online or marketing on social media, Kiehl’s focuses on using digital technology to better take care of the customers who have purchased its goods. That initiative is a “4 contact contact” program.

The first time is when a customer makes a purchase. The second time was 7 days after the purchase, Kiehl’s emailed thank you and talked about the results that customers should achieve after using this cosmetic period. The third time is 14 days after the purchase, the customer is introduced to the supplement products, along with the results that the customer should achieve after 14 days of use. And the 4th time is 12 weeks after the purchase, the customer will receive an SMS with the title: “Have you used the last drop?”, Together with the online purchase instructions at

How to harmonize distribution channels?

Enterprise harmonizing distribution channels must with a more creative mindset when thinking about the resonance between online and traditional channels, creating a convincing multi-channel experience for users. This is how digital transformation is both an objective and a means to help businesses achieve their goals.

Department of Information Technology – Ministry of Information and Communications

How has digital transformation changed everything?

How has digital transformation changed everything?

Digital transformation, participating in the digital environment means that every citizen will have both an identity in the real world and in the virtual world.


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