Features of Developing Distribution Channels for Local Producers

Narek Halstian

Citation: Narek Halstian, "Features of Developing Distribution Channels for Local Producers", Universal Library of Business and Economics, Volume 02, Issue 03.

Copyright: This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This article examines the sustained growth in demand for products of local producers, driven by shifting consumer preferences towards transparency of origin and environmental sustainability. At the same time, the increasing concentration of the retail market and the tightening requirements for supplier integration into electronic document management systems create significant entry barriers for small enterprises. The relevance of this study is determined by the need to identify effective distribution channels that can neutralize these constraints and convert heightened interest into stable revenue growth. This work aims to develop a practical toolkit for selecting and configuring distribution channels in a manner that minimizes transaction and logistics costs, as well as the risks associated with non-compliance with regulatory requirements. Based on a systematic review of industry reports and academic research, a comparative analysis of transaction costs, and a content analysis of practical case studies, a methodological framework is proposed that includes target-audience segmentation, cost modeling, and the development of a structured channel matrix. The novelty of the research lies in the creation of a multidimensional distribution-channel matrix that combines four basic dimensions: type of buyer, decision-making context (offline/online), the price–quality–convenience trade-off, and the premium willingness for locality. The proposed tool enables the adaptive construction of direct, short chains and interaction with local retailers by synchronizing digital and offline touchpoints, as well as integrating a promotional calendar with an analytics system. Thus, the use of the developed approach demonstrates the ability to achieve an ideal balance between margin and sales volume, reduce costs for EDI and last-mile logistics, and enhance the strength of the channel strategy through orderly marketing and adherence to legal requirements. This paper will help business growth leaders and advisors in the gifts selling field.


Keywords: Local Producers, Distribution Channels, Channel Matrix, EDI, Direct Sales, Retail Chains, Omnichannel, Transaction Costs.

Download doi https://doi.org/10.70315/uloap.ulbec.2025.0203016