Community-Driven Distribution Models

In a world in which consumers demand products that cannot be mass produced in the way most business are organized, how will businesses remain competitive? One possibility is a return to the model of days gone by. Companies can build platforms — modern-day “digital sale barns” — that allow networks of consumers to effectively produce and distribute valuable consumer goods and services. This new way of doing business is called the community-driven distribution model (CDDM). Aspects of this model have a proven track record in several industries, including retail (digital and hard goods) and service. What can other industries learn from these early experiences? The road map is straightforward: create a platform for your community, offer incentives for the movement of value within the community, and motivate the entire network to engage in loyalty-generating activities.

This discussion paper looks at the steps required to develop a sustainable CDDM and offers an example of how it can implemented by a bricks-and-mortar retailer.