Controlled distribution

Controlled distribution

More retail brand owners are favoring direct distribution — that is, selling their products solely through their own stores or websites.

These companies have few, if any, third-party distributors or indirect sales.

They rarely have markdowns or outlet stores, and their products won’t be found at online retailers like Amazon.

The advantage of this business model it that it allows businesses to better control inventory, pricing, promotion, and brand presentation. It also leads to a better, more comprehensive relationship with end customers. As a result, direct sales typically yield higher margins than wholesale, with higher conversion rates.

Lululemon Athletica (LULU)

In our research, one key question we ask is how companies sell and distribute their products and services. Athletic clothing retailer Lululemon employs a direct distribution model and plans to double its digital sales over the next five years.

  • The company is rolling out an “Omni Guest Experiences” membership program and experiential stores, which will allow customers to take in-store fitness classes.
  • The Omni program offerings should enhance customer engagement and draw new customers to the brand.
  • During a test phase, 15% of membership sign-ups were from customers new to the brand.

A decade ago, we noticed that how people see their pets had changed. Rover wasn't just there to fetch slippers anymore—he was a bona fide family member—providing certain sectors and companies with long-term advantages.

of pets

Patients' genetic makeup will become integral to diagnosis, treatment, and therapy — and some companies are well positioned to see ongoing growth from it.


With more than 80 million mobile phone peer-to-peer payment users in the United States alone, electronic money transfers, e-commerce transactions, and one-button checkout are taking share from cash and physical credit card payments—and giving companies with certain structural advantages an edge.

e-Commerce and
payment processing

Self-driving vehicles are only in the testing phase; the opportunity for semiconductor companies to supply these markets is already growing at above-market rates.

Autonomous and
electric vehicles

Most companies now recognize that digital marketing's essential for growth—and their investments are driving growth in data-driven tools on social media, mobile applications, email, search engines, and websites.


5G technology will improve wireless speeds and let users connect to more devices at once, facilitating the Internet of Things. The rapid growth in connected devices and systems will drive carriers to invest rapidly in 5G networks.

5G connectivity and
the Internet of Things

COVID-19 has driven major changes in consumer-purchasing preferences, human communication, and workflows. We are identifying companies across a multitude of industries that will be beneficiaries once the dust settles.


The demand for cloud computing is on the rise as more businesses find it essential to transition their on-site information technology systems to the cloud.

Our philosophy is simple: growth potential, but make it durable.