The Impact of Product Classification on Distribution Channels

Product classification influences the choice of distribution channels, ensuring that products reach the right audience through the most effective pathways. For example, luxury products with exclusive positioning often use selective or exclusive distribution, relying on high-end retailers or direct-to-consumer sales. On the other hand, mass-market products like fast-moving consumer goods (FMCGs) are distributed through a wider range of channels, including supermarkets and online platforms.

By understanding how products are classified, businesses can optimize their distribution strategies, ensuring that their products are available where their target customers are most likely to shop. Proper classification streamlines the distribution process and enhances the customer experience by ensuring the product is readily accessible.