A company has to be vertical to reach half a trillion dollars in market valuation. That’s easier said than done, and most brands leverage other companies’ distribution, as distribution is expensive to build. If you’re clothing designer Rebecca Minkoff, you’re not going to build your own stores beyond a dozen flagship locations around the world; you don’t have that capital. Instead, you sell your products at Macy’s and Nordstrom’s. Even if you’re Nike, it’s much more efficient to sell through Foot Locker than to build your own stores.
