Factory Outlet Center: a new concept of doing shopping. Factory Outlet Centers' peculiarities in Europe.

Abstract

The paper aims to analyze the outlet distribution channel defined as a kind of distribution where manufactures sell their product for better prices and in particular it focuses on the concept of Factory Outlet Center where these manufactures have opened shops. The Factory Outlet Centers (FOC) is simple described as “Agglomeration of many outlet store units within a coordinately-planned or a spatially-interrelated complex of buildings” where the coordination, organization and the marketing activities are carried out by a center management that usually are a third organization, external to the manufactures. Initially it will analyze the various type of distribution channels and their evolution and, in specific, we are looking at the way through which apparel companies reach the final consumer and we are going to define the three main channels: direct, indirect and multichannel distribution. After analyzed the concept of Outlet, the second part is going to focus specifically on the Factory Outlet Center that has been developed in USA market first and then in Europe and it finally started to enter the Asian market few years ago and we are going to describe the business model of this new kind of idea of shopping experience. After explained the concept of outlet that is considering the starting point, we are going to focus our attention on the definition of FOC and how it has been developed in the Europe. We are going to analyze the impact that a FOC has on the territory where is located, the type of customers that it aims to achieve and all the companies and shareholders involved in the creation and management of the center. Finally the paper will try to discover differences in the business model of a Factory Outlet Center between countries in Europe. If there are, what are the main differences between a FOC in Europe? How does it adapt itself on the new market and customers in order to be successful? After conducting the analyze we will try to highlight the strategies that lead a FOC to success in different countries in Europe.