Media, luxury and education
Directly operated store (DOS)
A store the brand owns and runs itself, rather than selling through another retailer.
Facts checked against sources onWhat does Directly operated store (DOS) mean?
A directly operated store is a shop that a brand runs with its own staff, keeping the full retail price. Luxury brands such as Louis Vuitton and Hermes sell mostly through their own stores (the retail channel) to control price, presentation and client relationships. Example: a bag with a retail price of 2,000 brings the brand 2,000 in its own store, but perhaps 1,000 when sold wholesale to a department store. The brand's own store must, however, cover rent, staff and stock. A network of own stores means high fixed costs and strong operating leverage: profits rise fast when sales grow and fall fast when they shrink.
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Related terms
- Wholesale (fashion and luxury)Selling goods to other retailers, such as department stores, which resell them.
- Vertical integrationOwning more stages of your own supply chain.
- Operating leverageHow much profit swings when revenue changes, because of fixed costs.
- Fixed costA cost that stays the same when volume changes, within a normal range.
- SVOD and AVODStreaming paid for by subscription (SVOD) versus paid for by advertising (AVOD).
- Fill rate (advertising)The share of available ad slots that are actually sold and shown.
- Content amortizationSpreading the cost of films and shows as an expense over the years they are expected to earn.
- ARPPU (average revenue per paying user)Revenue divided by only the users who pay, not all users.
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