Exclusive distribution: Producers use very few outlets in a geographical area to distribute their product. Product "image" is more important than availability or customer preference.

This policy is suited to products that are very expensive (e.g., Gucci® bags). The company chooses locations carefully. This policy is suited to few consumers or products. An "image" is associated with products distributed exclusively.

 

Unfortunately, exclusivity lends itself to the underground "knock-off" market (particularly with products manufactured in China where few manufacturing controls are in place). The better the knock-off, the more difficult it is for the producer to maintain the illusion of exclusivity. Competing products also try to match or surpass the exclusive environment in an attempt to attract customers. They might provide a Porsche® atmosphere for the Ford® family budget.