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After attracting attention, a distribution deal to traditional retail channels led to sales topping 200,000.
Even companies that do a lot of business with mass merchants may actually make most of their profits from traditional retail channels.
Globester sells these tickets over the Internet thereby eliminating the significant expense incurred by traditional retail channels.
"The trick in Manhattan is to deliver a location that will allow the manufacturers to open up without ursurping or interfering with their traditional retail channels."
The traditional retail channel, for example, requires the consumer to make contact with a retailer, and retailers generally do not distribute products without charging a price for them.
The Pop Shoppe avoided using traditional retail channels, selling its pop through franchised outlets and its own stores in refillable bottles in 24-cartons.
"The big question is whether they can extend their direct business model to mainstream consumers without using the traditional retail channel that most consumers are used to buying from," Mr. Bajarin said.
It publishes its own games (developed by Paradox Development Studio) as well as other developers' through traditional retail channels as well as digital distribution services, such as GamersGate.
Small Rockets was born from the ashes of Fiendish Games, a department of Criterion Games, that was started to test the waters for delivering games online rather than through traditional retail channels.
In 2002, a CD reissue by Collectors' Choice Music inadvertently used the earlier, rejected mix for initial pressings fulfilled by mail order; this was subsequently replaced with the approved Clearmountain mix by the time the CD was made available through traditional retail channels.