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Channel Diversification
Expanding into new sales channels, such as e-commerce, direct-to-consumer, or specialty retail, to reduce dependency on traditional retail outlets.
Implications
The expansion of a company�s sales or distribution channels to reach new markets or customer segments, often used to reduce reliance on a single channel and spread risk across multiple revenue streams.
Example
Example: A food company engages in channel diversification by adding direct-to-consumer e-commerce sales to its traditional grocery store distribution, reaching customers who prefer online shopping.
Related Terms
Different from product diversification, which involves adding new products, channel diversification focuses on expanding the ways products are delivered to market.
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