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Indirect channel:
In indirect channel the manufacturer doesn’t sell the goods to the 
consumer directly. He sells goods to the middlemen. The middlemen in turn sell 
the goods to the consumers. 
The different types of indirect channels are: 
A)
Producer-Retailer-Consumer
: Due to modern means of transport and 
communication, growth of retailers, advanced system of automatic data 
processing, computerization or order processing, increased availability of 
warehousing etc., it has become possible to bypass the wholesalers and 
the producer is able to deal directly with the retailers. 
Producer 
retailer 
consumer 
For example: Refrigerators, Televisions Typewriters, electric fans and 
Type-recorders etc., for consumer durables. 


110
B)
Producer-Wholesaler–Retailer–Consumer
: Under this method, the 
producer sell the goods to the wholesaler, who in turn, sell to the 
retailers. The retailers in turn sell the goods to the ultimate consumers. 
Producer
wholesaler 
Retailer consumer 
This channel is used for consumer durable products, which are not 
subject to changes in fashion. This is a traditional channel of distribution 
of goods. 
C)
Producers-Wholesaler–Consumer 
: Under this method, the producer 
sell the goods to the wholesaler who in turn sell to the consumers by 
bypassing the retailer. 
Producer 
Wholesaler
Consumer.
This channel is widely used where there are large and institutional buyers 
in the market such as Hospitals, Government and Educational 
Institutions. 
D)
Producer-Agent-Retailer-Consumer
: In this method the producer sell 
goods to an agent, in turn sell goods to the retailer who in turn sell them 
to the consumers. 
Producer 
Agent
Retailer 
Consumer
Agents are common in the distribution of textiles and agricultural 
products etc. 
E)

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