In licensing terms, what does 'new channels of distribution' refer to?

In licensing terms, what does 'new channels of distribution' refer to?

• A. Reaching new retailers and markets
• B. Reducing distribution channels
• C. Increasing manufacturing complexity
• D. Decreasing product variety

Answer: (A)

Expanding distribution reach means adding new pathways for customers to buy the product. In licensing, this sits at the heart of growth: bringing the licensed goods into new retailers or entering new geographic markets, and could even include leveraging additional sales platforms like online channels. The aim is broader access and greater market presence, not cutting existing channels, increasing manufacturing complexity, or limiting product choices. By opening up new channels of distribution, the brand can reach more customers and unlock growth opportunities.

Expanding distribution reach means adding new pathways for customers to buy the product. In licensing, this sits at the heart of growth: bringing the licensed goods into new retailers or entering new geographic markets, and could even include leveraging additional sales platforms like online channels. The aim is broader access and greater market presence, not cutting existing channels, increasing manufacturing complexity, or limiting product choices. By opening up new channels of distribution, the brand can reach more customers and unlock growth opportunities.