Distribution means an arrangement that is responsible for the per location of goods and services from the producers to the consumers with reference to time, place, price and ownership dimensions. Distribution does not mean merely packing the goods and dispatching them. It is the actual placing of goods in the hands of final user or the commercial user at right place, time and price. The system distribution can be compared to the system of blood circulation where the blood flows from heart to the different limbs of the body through the arteries and veins.
Direct distribution system stands for that arrangement where there is direct contact or link between the producers and the consumers. In other words, it is an attempt to sell the goods directly to the consumers without the aid of intermediaries may be merchant or agent. The most common ways of direct distribution are selling the firms products through the chain-stores or multiple-shops, mail-order units and machines. In India most of the textile units, sheet units, and luggage units are selling their products through their own shops and establishments.