Brand protection in the context of selective distribution networks: Internet and the luxury dilemma*

Brand owners have an interest in controlling how and where their products are sold. The expansion of E-commerce has exponentially increased the challenges companies face when designing their distribution strategy.

Manufacturers can use selective distribution systems to maintain greater control over the resale of their products. The main element of these systems is that the manufacturer agrees to supply only those distributors who meet certain minimum criteria and they are allowed to prevent those distributors from supplying third parties who are not members of the selective distribution system. Selective distribution arrangements aim at achieving consistent standards and quality

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The views and opinions expressed in this article are those of the author and do not reflect the official position of the European Commission. Any errors or inconsistencies are the sole responsibility of the author.

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