OLB Distribution
The purpose of OLB is to provide a logic for distributing brands through all types of distribution channels chosen by the main brands in the fashion sector and using their own and unique channels for the developing luxury markets.
Despite today, following the now more than affirmed advent of the Internet, the introduction of the network constitutes a powerful means for high fashion brands, as it allows them to know and invest in the wealth of information that underlies the process. customer decision-making, OLB has decided to implement a multi-channel strategy, which consists in providing the consumer with the possibility of creating contact with the brand both in the “physical” space and online.
In fact, physical stores and digital channels must necessarily be present in a single brand environment and in a single retail experience capable of responding in an appropriate manner to the needs and desires of the demanding customer who generally now tends to find out about products in various ways (particularly through the Internet), but feels the need to touch them and see them in store.
Thus, to differentiate from ordinary distribution and the promotion of individual brands, which configure their strength in marketing, it is essential for OLB to have hybrid distribution systems, making sure that the various channels are in total synergy to meet customer preferences. who expect an integration of the physical retail channel and the Internet channel.
This allows the demanding customer considerable advantages such as, for example, the ability to search for a product online and then go to see it physically and wear it at the nearest store. For the shopping experience to be satisfactory, it must be ensured that all the points of contact that the consumer has with the brands are consistent with each other, but above all that the shopping experience conforms to his expectations.
In fact, it is not easy to describe the soul of brands on the Internet as you would in your own boutique, in fact the best fashion houses have managed to become such as they resort to an intensification of the number of channels to access the market from every point of the area covered by them.
This generates greater market coverage, a lower cost of some channels and the implementation of segmented sales based on the nation and the predominant culture of that nation.
In light of these changes, the main companies in the fashion sector are oriented towards having their own store, with a department store and even a flagship store.
The concepts of marketing mix and placement, types of distribution, distribution channels and related types are increasingly important for OLB.
To optimize the OLB process after introducing the brand under consideration, it will choose how and to what extent to distribute its products among the public, also dealing with the innovations that the company will introduce in this field. This is because there are no distribution strategies that remain valid for the entire life cycle of a brand. The structure of the distribution must change with the passage of time. It may be necessary to introduce or suppress a channel or its components, or a totally innovative sales method can be used.
For this reason OLB, being a lean structure, has the possibility to continuously review and eventually fine-tune changes to the organization and structure of its distribution channels. It can also study the correlations between the type of brand and the type of distribution chosen in a continuous and personalized way.
As far as physical stores are concerned, it is important for OLB to create an environment that is able to communicate the desired brand image, thanks to an exclusive positioning, capable of creating the conditions that favor the purchase most. This is why OLB believes that the store should be located in the most important luxury shopping areas within the city, to ensure high visibility for distributed brands. Particular care in the interior design, trained and reassuring staff to instill a positive feeling to the customer thanks to a design that makes him properly perceive a relaxing and pleasant atmosphere.
In addition to this, particular attention is dedicated to marketing, and to the promotion of the products distributed, not relegating it to the merely advertising and commercial aspect. For OLB, both the study of the local market, especially for those less “standard” markets, and a study of consumers is important. This is to ensure a correct creation of the target market, needs and the promotional aspect.
OLB’s goal is to transform potential buyers into customers who will make a purchase and, generally, are looking for accessories that individual manufacturers are not able to sell independently. For this there are physical stores and the sales network, which act as a complement between producers and final consumers. In fact, distribution channels must not only serve the markets, they must also create them. This is in the interest of both consumers and producers, who obtain a simplification of the system and of contact with end customers.
OLB takes care of a continuous adaptation both in terms of assortment and quantity, guaranteeing the end customer consulting, information and support services. It is an essential task, so much so that traditional distribution channels have often abandoned or do not pursue tenaciously.
In managing distribution, OLB invests both in impulse and attraction strategies. An impulse strategy leverages the manufacturer’s sales force and means that help commercial intermediaries sell the product to end customers. In that of attraction it is the producer who, through the use of promotions, advertising and other forms of communication, induces consumers to ask the sales network for the product, who in turn will procure it in order to bring consumers back to their points of sale. OLB is able to activate both strategies in a synergistic and balanced way according to the market in which it is located and the product it has to position and distribute.
Thanks to its flexibility, OLB studies the best channel to put the producer in communication with the final consumer, through various methods such as single-brand sales points, single-brand sales points and entrustment to third party sellers. In its own reference stores it is able to organize private business meetings and, where necessary, home sales. This is because consumers can prefer a certain distribution channel based on the assortment of products, convenience, price.
The distribution of OLB concerns non-consumer products and does not need to manage a large number of points of sale. It can adequately cover its market with greater control, with lower costs than traditional distribution. The personalized strategy creates interest in the product and optimizes distribution.
Due to the exclusivity of the product, the number of intermediaries is limited, which must necessarily be selected as these are products characterized by particularly high quality and price. Interested customers are particularly sensitive to brand and quality, are willing to pay a high price, but also have high demands.
OLB is the best solution when the manufacturer wants to keep a check on the level of service offered by the sales network and resellers, so as to create a highly reputable, more informed and qualified sales action. This presupposes a very close partnership agreement between the manufacturer, the distribution network and the retailer. This exclusive distribution method is increasingly establishing itself as the main avenue for the affirmation of luxury brands.
The main strength of OLB is to know the panorama of the fashion and luxury sector, even of those markets often neglected by “classic” distribution. Therefore OLB moves in the perspective of a progressive shortening and a better organization of the channel itself, in order to better have a channel as direct as possible between the potential final customer and the manufacturing company.
OLB also distributes not only clothes, but also accessories and cosmetics, always of the highest range. This choice brings greater harmony of the product within the store both for the choices of the format and for the display system, the setting, the lighting, the graphics.
The goal is to reach the consumer, whether it is the passer-by or the loyal customer, with attractive windows to then introduce the viewer into the store. Thus, by enhancing the product with a strong visual impact, the showcase has become a real means of communication strategy for O.L.B.
O.L.B. studies strategies for internationalization and large-scale distribution in the high-end apparel sector, including in those often overlooked markets such as the former Soviet republics and in Asia. Thanks to the knowledge of the functioning of the various logistics systems and local customs, in some cases, the points of sale can choose not to have their own warehouses, but are supplied on request thanks to an IT system and a fast and reactive staff.
Where it considered necessary, OLB developed its own “flagships” designed according to the needs of local consumers. Each shop is designed only after a meticulous study and a careful analysis of the consumer and the patrons of the street where it is to be opened, without underestimating the importance of the nearby shops.
OLB also distributes its own brands of high quality Italian tailoring in synergy. are an example of this : Canali – Etro – Moreschi – Valentino – Ventura – Artioli.
A further synergy proposed by OLB is that between “luxury brands”, “exclusive brands” and “high quality brands”. A differentiation of this type is in line with the strategies of better covering the needs of customers, satisfying the needs of those who prefer to buy a product for its value or its design rather for the reputation of the luxury brand. This from the point of view of a more “democratic” and in some ways more accessible luxury.
With the evolution of the market, due to the affirmation of the Internet also in emerging markets and the boom in online sales, also due to the recent pandemic, OLB supports its network in the development of social networks and sales through e-commerce, even if it does not operating directly in a massive way through those channels.
A possible future evolution, in order to obtain greater control over the sales channel, could be to directly manage franchising points of sale or corners within large luxury stores.
From a technical point of view, in order to optimize the distribution chain, OLB analyzes before making any choice:
– Size of the brand represented
– Financial resources available
– Degree of knowledge of the market of the actors involved
– Extent of the range offered
– Marketing services offered by the manufacturing company
– Propensity for greater channel control
– Number of potential buyers for that specific market
– Geographic concentration of the market
– Average order size
– Technical characteristics of the product
– Consistency of marketing policies
– Evaluation of the competitor’s offer