What is exclusive distribution and will you recommend exclusive?

What is exclusive distribution and will you recommend exclusive distribution for FMCGs?

• Answer:

  Exclusive distribution is when you only have one outlet/store in a given area for your product. The store can enjoy a higher margin and little competition and so may perhaps prominently place the product to encourage sales. This may help the product seem more desirable, make more money per sale, and minimize channel conflicts, but may reduce total profits. Fast-moving consumer goods (FMCGs) are usually not distributed this way but it is reasonable to consider when manufacturing or distribution is constrained (you can't make fast enough) or to make the product seem more special in its early stages.