What is direct selling? Mention four cases where direct selling is more suitable than indirect channels of distribution.

Direct Selling — Direct selling means the producer directly sells goods to ultimate consumers, and there is no middleman or intermediary involved. The producer has direct contact with customers and full control over distribution. Direct selling has become popular due to increasing costs of distribution, scattered markets, cut-throat competition. Four cases where direct selling is more suitable than indirect channels:

1. Industrial and heavy products — For products like industrial machinery, power transformers, and heavy equipment, direct selling is most suitable as buyers are limited in number and require technical demonstration, installation and after-sales service.
2. Perishable goods — Producers of perishable commodities like fruits, vegetables and bakery items prefer direct selling to local customers to avoid spoilage during transit through middlemen.
3. Custom-made products — When products are made according to specific customer requirements (e.g., tailored garments or specialised electronics), direct contact between producer and consumer is essential.
4. Limited or concentrated markets — When the number of prospective buyers is small or the market is geographically concentrated in a limited area, direct selling is easy and economical (e.g., specialised software sold to specific industries).