Managing Distribution Channels and Customer Relationships: the Liu Jo Case Study

The increasing competition and the development of the new technologies are significantly changing the way in which organizations manage distribution channels and customer relationships, giving rise to new challenges and new opportunities. Distribution channel management determines how firms reach their actual and potential customers, while customer relationship management (CRM) aims to build customer retention as a way to increase the long-term profitability. The implementation of the distribution framework implies strategic decisions concerning the number and type of channels, the intermediaries involved, the level of market coverage, the integration of online and offline channels. CRM practices deal with the segmentation of the customer base according to data collected through the †˜information technology' and the relative allocation of resources. Distribution channel and customer relationship management are crucial activities in the value creation process, since they can determine additional competitive advantages. The aim of the research is to investigate the strategic decisions and policies adopted in these fields by the Italian fashion company Liu Jo. The analysis focuses on the selection criteria of the distribution channels in the domestic and foreign markets and on the customer portfolio management strategy as a way to face the increasing competition affecting the fashion industry.