That’s not entirely true.
The reason for selling products through MBO are many.
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Footfall are generally higher in MBO, so product placement in MBO offers lot of visibility, brand recall and help in building trust. They acts as push towards EBO.
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Number of EBO will always be limited in every city and for big cities, MBO offers wide reach and availability to every nook and corner of brand thus increasing sale.
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For Rural / Interior market, MBO are still dominant and opening EBO in smaller towns is not economically feasible.
Though this has some merit but it not entirely true.
eg. Peter England has more than 1000 franchisee outlet but they still sell through MBOs.
Same is true for Mufti, US Polo, Allen Solly, Van Heusen and so many others.
This has changed drastically and now many big MBOs work seamlessly with brands.
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