Distribution channel strategy is one of the main key factor of success for a commercial success. I believe that it is more and more complicated to rely on a single distribution channel, as it could have been thought couple of years ago.
One of the best case is Nespresso. Nespresso is one of the leading company in the coffee machine and capsules market. Even though they aren’t distributed in retails, they have applied a multi channel strategy:
- By phone
- By direct marketing tools
- But now they are developing some retails activites for both a branding strategy and sales purpose.
Now I have read this interesting article about why the Nexus One launch. Indeed, Nexus One has decided for a online only retail strategy. But in fact, this decision may have a great impact on the slow start they have.
Google don’t have no experience neither in E commerce nor in any kind of retailing. Retailers, even though it has a price to deal with, are experts, and are able to market properly such a product to make it a success. For a mass market product, it is important not to rely only on Internet retailing.
If you compare to how the Iphone has been set there is a large difference. Apple is already present in electronics stores, and have an e commerce website they master. Hence, I believe Google should try to set partnership with larger retailers to boost its Nexus One sales.