What Is Intensive Distribution?

With revenue reaching €473 billion in 2020 according to INSEE statistics, retail is one of the most important business sectors in France. It employs around 1.4 million people, making this field essential to the country’s economy. However, when developing a retail business, it is important to choose the right distribution strategy : exclusive, by choosing a single point of sale for your products; selective, meaning selecting a limited number of points of sale; or intensive, by opting to multiply points of sale throughout the country. 

The latter appears to be one of the most suitable strategies for the mass retail sector, with a method that makes it possible to cover most of the market, and thus make your products accessible to as many people as possible. But what exactly does intensive distribution involve? That is what we will explore in this article.

Intensive distribution : definition and objectives

An intensive distribution strategy enables your company to be present across a large part of the market by making your products available at most points of sale overall. This strategy is particularly suited to companies offering products that are in particularly high demand among consumers.

The objectives of intensive distribution

Choosing intensive distribution addresses several needs specific to retail, with particular attention to mass retail :

• Meeting significant needs : fast-moving consumer goods, due to their short lifespan and immediate use, now represent the main segment of consumer goods.
• Making products easier to access : multiplying points of sale across different geographical areas is necessary to achieve broad market coverage.
• Promoting the brand : becoming established in consumers’ minds and strengthening brand image are essential to stand out from the competition.

Intensive distribution is therefore the ideal choice for distributors of fast-moving consumer goods seeking to achieve overall coverage and ensure consumers have consistent access to different products. When implemented correctly, this strategy offers clear advantages, but it may also involve certain drawbacks for your brand.

Intensive distribution : its advantages and disadvantages

When choosing a distribution strategy, it is of course important to consider various factors. When you opt for intensive distribution, you need to understand its advantages and disadvantages in order to avoid missteps during implementation. 

The advantages of intensive distribution

Adopting an intensive distribution strategy offers many benefits for your business, particularly if the products it provides meet a significant consumer need : 

1. Broad market coverage : this distribution method ensures that your products are continuously available throughout the distribution network.
2. Improved brand awareness : the consistent presence of your products at different points of sale reinforces the brand image while helping it stand out by gaining popularity.
3. Higher overall sales : available in most points of sale, your products are more likely to be chosen by consumers. Their permanent availability also helps build customer loyalty and prevents them from turning to competitors, inevitably improving sales for your business.

Although intensive distribution may seem like an obvious choice, it is important to be aware of the risks associated with this strategy.

The disadvantages of intensive distribution

Before applying an intensive distribution strategy to your products, you need to be aware of the drawbacks it may create :

1. A potential loss of control : the large number of distributors and retailers involved in this strategy can make it difficult to control aspects such as selling prices and product placement.
2. Loss of proximity to the end customer : the necessary adoption of a long distribution channel can result in a loss of contact with customers, making it more difficult to follow up with them and leading to an undeniable loss of closeness.
3. A risk of additional costs : differences in performance between points of sale may result in additional costs and losses in certain areas. This strategy also generates high distribution costs due to the need to reach numerous geographical areas and employ a substantial workforce. 

Intensive distribution now holds no more secrets for you, so you can adopt it within your company to distribute your products. However, you must keep the safety of employees involved in your intensive distribution strategy in mind, whether they work upstream in the logistics chain or interact with customers at points of sale. To do so, you will need to understand the risks they face and adopt the necessary measures to prevent them, through personal protective equipment such as appropriate safety clothing or safety footwear to ensure their comfort and well-being.

And to avoid any incident, do not hesitate to contact our team of experts at Shoes For Crews, a leader in slip-resistant work footwear, to ensure the safety of your employees throughout the distribution chain.