Understand the Role of Retailing in the Distribution of Goods and Services (P2, M2, D1)
A channel of distribution is a network of organisations that, combined, perform all the functions required to link producers with consumers. Retailers need to offer right product at the right place at the right time. If the product that a consumer wants is not available then 31% of consumers will buy from a different store, 26% will buy a different brand and 24% will delay their purchase, or not purchase at all.
There are many possible distribution channels. All begin at the manufacturer and end at the customer. For example;
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Every day about 200 20ft containers full of clothing, TV sets, barbecues and shopping trolleys are shipped out of Kwai Chung Container Port (better known as the Port of Hong Kong) and other nearby harbors, all bound for Tesco stores around the world. More than 60pc of all clothing and 40pc of other non-food products sold in Tesco's UK stores, as well as most of the non-food items sold in the 12 other countries Tesco operates in, are procured via the retailer's global sourcing office in Hong Kong. This trading outpost is responsible for designing, sourcing, overseeing production, quality controlling, and sorting out the customs documentation for 50,000 Tesco product lines. The operation's scale