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Generally, for mass-consumption products or services, it is rare to observe the practice of one-level distribution or one-level distribution circuit. The most used distribution channels by manufacturing companies are often two and three levels.
Given the complexity involved in the management and supervision of all intermediaries, manufacturing companies focus their efforts only on the most direct intermediaries, mostly wholesalers.
The observation reveals that if wholesalers are these most visible intermediaries in the immediate environment of the manufacturer, since they are the ones who freshly and directly bring back the financial results of the sales operations, the most significant intermediary in any distribution channel will continue to be the retailer, even though he’s not the manufacturer’s most immediate financial partner, he appears to be operating in the closest and most direct environment of the end consumer.