The Saudi distribution system: structure, operation and behaviour

Abstract

Provides insights into the distribution system of consumer goods in Saudi Arabia. The investigation derives information from both secondary and primary sources and centres on three distribution dimensions, namely structure, operation and behaviour. Finds that structural characteristics are inextricably linked to the idiosyncratic demographic, economic and sociocultural environment of the Kingdom, and that operating elements are greatly affected by environmental forces, as well as by rising competitive pressures and demanding customers. Behavioural aspects reveal the powerful role of distributors/agents and wholesalers in the distribution scene, as well as signs of channel conflict and competition. Overall, the study demonstrates that the Saudi distribution system is unique, complex and transient, and one where traditional and modern elements coexist. A thorough understanding of this system, therefore, is critical in gaining a foothold in such a lucrative but difficult market.

Citation

Leonidou, L.C. (1995), "The Saudi distribution system: structure, operation and behaviour", Marketing Intelligence & Planning, Vol. 13 No. 11, pp. 27-35. https://doi.org/10.1108/02634509510102165