AA In recent years, the HUGO BOSS group has become one of the global leaders in manufacturing luxury and premium goods within the apparel industry. By operating different distribution strategies, the company is internationally active in the world's largest markets. In particular, the group's own retail business, such as directly operated stores, will become increasingly important as part of the group's verticalisation approach for penetrating new markets. HUGO BOSS's global growth strategy allows for extensive brand control and autonomous increase of retail operations. By assuming full control over its brand impact in the Asian market, HUGO BOSS reinforces its presence in the region, particularly in essential growth markets. Finally, HUGO BOSS' distribution strategy lets the group attract customers in a targeted and individual manner and react to market trends. In addition, the integration of regional companies fosters speedy knowledge exchange and puts the company in the optimal position to secure further international growth. Questions 1. List possible reasons to implement secured distribution activities from a manufacturer's perspective and apply these insights to HUGO BOSS' situation in detail. 2. Describe potential channel conflicts for a manufacturer adding a new company-owned retail channel and use HUGO BOSS to illustrate some examples. Focus on methods that are suited to managing channel conflicts. 3. Assess the contribution of HUGO BOSS' company-owned retail activities to the long-term success of the company. For a general overview of motivations for secured distribution from a manufacturer's perspective, see Tsay and Agrawal (2004). Consider channel conflicts between a manufacturer and independent retailer's channels and between manufacturers' channels. See the discussion in Bucklin et al. (1997) for potential channel conflicts and a framework for managing them. Transfer Hauptkorn et al. (2005) on success factors for verticalisation strategies to HUGO BOSS' current situation. References Berman, B., & Evans, J. (2013). Retail management: A strategic approach (12th edn.). Upper Saddle River/NJ: Pearson Education. Bucklin, C. B., Thomas-Graham, P. A., & Webster, E. A. (1997). Channel conflict: When is it dangerous? Mckinsey Quarterly, 1997(3), 36-43. C&A (2014). Corporate responsibility report 2014. http://www.c-and-a.com/de/de/corporate/fileadmin/user_upload/ Assets/2_Sustainability/2.1.6/C_A_European CR_Report_2014_web.pdf. Accessed February 18, 2015. Committee for Definition of Terms in Trade and Distribution (2009). Katalog E - Definition of Terms in Trade and Distribution. Cologne: Institut fur Handelsforschung. Coughlan, A., Anderson, E., Stern, L. W., & El-Ansary, A. (2014). Marketing channels (7th ed.). Harlow: Pearson Education. Direct Selling News (2014). DSN global 100. http://directsellingnews.com/index.php/view/profiles, Accessed February 18, 2015. (" )