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Flexbase Series Stitched Baseball White Champions 2015 Gold Alex Royals Authentic Jersey 4 Program World Gordon

by Neil Kokemuller

Small retail shops also gain exclusivity by hand-crafting goods.

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Flexbase Series Stitched Baseball White Champions 2015 Gold Alex Royals Authentic Jersey 4 Program World A retailer buys goods from a manufacturer or wholesaler and resells them to consumers. Exclusivity refers to a situation in which a particular retailer is the only one allowed to resell a particular supplier's goods. This relationship offers several distinct advantages to a retailer. As an alternative, some retailers make their own branded goods for sale in stores.

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Pricing Flexibility

If you are the only retailer marketing a particular brand, you have pricing flexibility relative to a more competitive situation. While you need to consider the long-term implications of your pricing strategy, you can generally make a higher margin on exclusive goods. Customers that want the goods quickly learn that if they want them, they only have one way to get them. As long as you offer a positive customer experience and your prices aren't outlandish relative to substitutes, you can maintain strong gross margins.

Retailer Differentiation

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Exclusivity can potentially provide the key to building a distinct value proposition for your targeted customers. Differentiation is significant in marketing. Differentiation involves clear communication of something you provide that is bigger, different or better than what competitors provide. If your retail business is the only provider of a high-demand brand, you can leverage that fact across all of your promotions to appeal to discerning buyers.

Customer Loyalty

Once you attract customers you can leverage your exclusivity to develop loyal relationships. Loyalty is the ultimate in retail. A loyal relationship means a customer has an emotional attachment to your business and is often willing to sacrifice to buy from you. If you combine your exclusive brands with quality service and other positive attributes, you can garner loyalty. Over time, customers tend to connect exclusive brands with your retail businesses, which increases their favorable image of your company.

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Private Label Distribution and Vertical Integration

When the retailer owns its own manufacturing facility, or can partner with manufacturers of relevant goods, it can produce what are commonly referred to as "private label" brands. Many supermarket chains, and big-box chains such as Walmart, for example, offer their own exclusive store brands of many items. Some retailers engage in vertical integration by distributing their manufactured goods through other retail channels as well. Apple, for instance, sells its mobile technology products through other retail outlets in addition to selling them through its own stores. This scenario allows the retailer to expand its marketplace through broader product availability.

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Flexbase Series Stitched Baseball White Champions 2015 Gold Alex Royals Authentic Jersey 4 Program World

About the Author

Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.

Photo Credits

  • Jupiterimages/Goodshoot/Getty Images
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