Give an example of industry that has witnessed substantial changes in channels of distribution

Mobile industry is the best example for this scenario.

Earlier mobile producer distributed their mobiles through hiring a vendor and distributing through retail stores. But now, most of the producers sell their mobiles online. They are using different social media websites to advertise and sell their products. The consumers who are interested in the mobile are making orders directly through online medium.

Reasons for such changes are:

• Increased consumer awareness. Consumers are not preferring to save their time and shop from home. They are more conscious about their time and prefer delivery of their goods at their doorstep.
• Improvements and availability of technology such as internet has also influences the behavior of the consumers. Almost all the consumers have access to the internet through which they shop online.
• Another reason for this change is that selling products online is economically cheaper for producers and the benefits can be transferred to the consumers with cheap rates. There is no need for producers to maintain warehouses and appointing middle man. This reduces the producer's money.

Out of all the reasons reduction in the cost to the producers and consumers is most significant because it helps in creating demand of the products due to low price. Customer also get benefits of low price and producers also enjoys the increased demand of his products.