Integrated or concentrated trade is a form of network trade where all member companies are legally dependent. In other words, all the structures and outlets in the network are subsidiaries of a single parent company. The latter therefore fully manages all wholesale and retail functions, from producer to end consumer. It has a central purchasing office from which all members of the network obtain their supplies. Among the brands that apply integrated commerce are Orchestra, Darty, Celio and Casino.
Today, integrated commerce is an effective marketing strategy for expanding the distribution of a brand, a range of products or services across an entire territory. It offers significant buying power that allows us to offer very competitive prices. We generally distinguish 2 categories of associated trade:
- integrated cooperative or social commerce: this is a partnership and not a capital company. Its objective is to sell consumer products at the right price. To do this, it performs all the intermediate functions,
- the integrated capitalist business: it is a purely profit-making capital company. We speak more commonly of GMS, i.e. Large and Medium-sized Stores.