This centralized structure was put into place to eliminate the need to rely on wholesalers.
Samsonite had to worry about transporting manufactured products to the warehouse,
storing them, and transporting them to the retailers in the different European markets. The
company invested heavily in information technology to link the retailers to the warehouse
and thereby manage its European distribution system more effectively. Retailers would
place an order with a salesperson or the local Samsonite office, and the order would be
transmitted to the warehouse and shipping company by modem. The retail market in Europe
began shifting at the turn of the new century, so Samsonite responded by opening franchised
retail outlets in October 2002, beginning in Antwerp and spreading to other areas. As the
vice-president of marketing and sales put it, "We are anticipating a shift in the market, in
which the traditional luggage channel will no longer be at the forefront and a wide new retail
opportunity will emerge."
This centralized structure was put into place to eliminate the need to rely on wholesalers.Samsonite had to worry about transporting manufactured products to the warehouse,storing them, and transporting them to the retailers in the different European markets. Thecompany invested heavily in information technology to link the retailers to the warehouseand thereby manage its European distribution system more effectively. Retailers wouldplace an order with a salesperson or the local Samsonite office, and the order would betransmitted to the warehouse and shipping company by modem. The retail market in Europebegan shifting at the turn of the new century, so Samsonite responded by opening franchisedretail outlets in October 2002, beginning in Antwerp and spreading to other areas. As thevice-president of marketing and sales put it, "We are anticipating a shift in the market, inwhich the traditional luggage channel will no longer be at the forefront and a wide new retailopportunity will emerge."
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