Rational Distribution Channel Mix for Lifestyle Brands in India – An Empirical Study

Abstract

Indian lifestyle brands need to understand the importance of their retailing distributionchannels in relation to their overall brand image, products / categories they offer, targetconsumer group and their implications on the overall brand profitability and consumerperceptions over the brand image rather applying standard thumb rules, assumptions andmisconceptions followed by other generalist brands or even short-term lucrative deals offeredby distribution channel partners. It is evident that only few Indian brands are able to createtrue lifestyle brand image in their employees, investors, competitors and consumers mind andtrueness level of majority of Indian lifestyle brands is still a question. Majority of developingand developed Indian lifestyle brands assume that the success of a lifestyle brand is measuredbasis the revenue or profit they generate through having presence across wider distributionchannels and are impatient / unaware of implicit long-term strategical benefits of creating atrue lifestyle brand image in consumers mind using a rational distribution channel mixstrategy. It is true that India is one of the countries with consumers belonging to the widestrange of Religions, Regions, Languages, Sub-Cultures and Economic backgrounds whichmakes it very difficult for any lifestyle brand to have their presence across the country throughvarious distribution channels as each one of them have their own pros and cons for the brand.This makes it furthermore important for lifestyle brands in India to be more careful andefficient in ensuring the adaptation of rational distribution channel mix. It is observed that themajority of Indian lifestyle brands believe they have adopted the right distribution channel mixand it is yielding the best possible revenue and profit. This belief / assumption always distractsthem from analysing the pros and cons of each distribution channel with respect to the overallbrand image and they rather spend most of their time in finding sales channels which are newor latent in nature to be added to the existing distribution channel mix. In this research, wehave analysed twelve months actual sales data across various distribution channels availablein India of few select lifestyle brands and drawn insights to recommend a rational distributionchannel mix for lifestyle brands in India.