What market term describes the situation where diamonds are sold through multiple channels and De Beers cannot buy all supply?

What market term describes the situation where diamonds are sold through multiple channels and De Beers cannot buy all supply?

• A. Single channel market
• B. Global channel market
• C. Exclusive channel market
• D. Multi-channel market

Answer: (D)

Distribution channels describe the paths diamonds take from producers to customers. When diamonds are sold through multiple channels, several different buyers and routes exist in parallel, so no single buyer can purchase all the rough material. This reflects a fragmented supply landscape where polishing centers, wholesalers, retailers, and alternative markets all participate. De Beers not being able to buy everything signals that control over supply is not centralized, which is the essence of a multi-channel market. The other options would describe scenarios with a single gatekeeper or geographies dominating, which isn’t the situation here.

Distribution channels describe the paths diamonds take from producers to customers. When diamonds are sold through multiple channels, several different buyers and routes exist in parallel, so no single buyer can purchase all the rough material. This reflects a fragmented supply landscape where polishing centers, wholesalers, retailers, and alternative markets all participate. De Beers not being able to buy everything signals that control over supply is not centralized, which is the essence of a multi-channel market. The other options would describe scenarios with a single gatekeeper or geographies dominating, which isn’t the situation here.