ITC – Indirect-to-consumer – Definition & Meaning

Indirect-to-consumer (ITC) refers to the traditional model of selling products through intermediaries, such as retail stores or wholesalers. In this model, the manufacturer or supplier sells the products to intermediaries, who then sell them to consumers. ITC is the opposite of direct-to-consumer (DTC) sales, where the manufacturer or supplier sells directly to the consumer.

Some examples of ITC sales include a clothing manufacturer selling to a department store, which then sells the clothing to consumers; or a producer of consumer goods selling to a wholesale distributor, who then sells the products to retail stores, which sell them to consumers. ITC allows manufacturers and suppliers to reach a wider market and can help them to distribute their products more efficiently. However, it also means that they have less control over the customer experience and may not have as much direct contact with their customers.

Advantages and disadvantages of the Indirect-to-consumer (ITC) Sales model.

• In the ITC model, intermediaries such as retail stores and wholesalers play a key role in bringing products to consumers. These intermediaries often have established relationships with manufacturers and suppliers, and they may have expertise in areas such as distribution, marketing, and customer service.
• ITC can be an efficient way for manufacturers and suppliers to reach a wide market, as intermediaries often have networks of stores or customers that can distribute the products.
• ITC can also allow manufacturers and suppliers to focus on their core competencies, such as product development and production, while leaving the task of distribution and customer service to the intermediaries.
• However, ITC also has some potential drawbacks for manufacturers and suppliers. They may have less control over the customer experience and may not have as much direct contact with their customers. In addition, they may have to pay a commission or fee to the intermediaries, which can cut into their profits.
• For consumers, ITC can offer a wider selection of products and may provide a more convenient shopping experience, as they can often find products at multiple retail locations. However, they may also pay higher prices for products due to the added cost of the intermediaries.