Let's have a look at your Channels to market. This is all about how you can get your value proposition to your customers.

There's generally two options that you can go with: do it yourself, or outsource it to another company. If you go directly, it allows you to get higher margins, whereas indirectly e.g through partner networks,  generally decreases your chances of margins.



When you first start with your own company, often you want to keep margins to yourself meaning you want to have your own sales team, to start talking to people yourself, and really own the whole channel that you deliver to your customers. However, what you need to take into account, is the reach that partner networks and indirect channels can give you. Whether that's through referrals, wholesalers, distributors, or through somebody else's website. It’s really important to understand what channels your customers usually shop with and matching your channel to that.

Let's have a look at two fashion products as examples. One with an indirect channel, one with a more direct channel. Both products have different customers, different segments, and have chosen their channels based on their customer segments.

The first example is the brand Louis Vuitton.

Louis Vuitton is a high-end fashion retailer that focuses on high value products. Often you spend thousands of dollars for their handbags, shoes, t-shirts, jeans, and other products. In order for Louis Vuitton to charge that kind of money, they need to offer high quality of service to their customers. To do this they have their own retail stores around, which they staff, outfit, and can control every point of contact with their customers. This allows for a high quality service that they can control and they maintain.

On the other side, using an indirect approach, you have Nike.

It’s still a great brand, however, they often don’t manage their own channels to market. They have a segmented market and have sports shops like Stirling Sports, Rebel Sports, and other retailers on-selling their products.


It’s important to figure out which is your best channel; this is how you deliver your value proposition to your customers. This might be through two ways: Direct or Indirect. Direct allows for higher margins, and indirect generally decreases margins. It’s always a good idea to use digital channels to increase the reach of your business. However, in the early stages don’t forget about face to face communication which is incredibly powerful in a noisy digital world.