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jerryking : wholesalers   8

WHOLESALE The real squeezed middle?
From dealing with ongoing margin pressure in a low growth environment, to dealing with higher customer expectations,
and mounting concerns about the black market, the challenges facing wholesalers are considerable. However, the picture is not all gloom. Opportunities still exist for operators able to supply goods in line with changing industry trends, while maintaining a low cost base. Increasingly this will be through supply chain integration and enhanced service levels. But, ultimately winners will be wholesalers that can effectively reinvent themselves by developing new
hooks into their customers.

Demand is highly influenced by end user trends. However, wholesalers only have limited ability to respond quickly.

The ability to source and alter stock in line with changing trends is vital, especially in terms of broadening of the
product range.

Wholesale is generally a high volume low margin industry with operating margins of only 1-2%.

Margins are constantly being squeezed. Bargaining power in many consumer goods markets has been weakened by
powerful manufacturers and dominant retailers.
responding to end-user trends
margin pressure

Most wholesalers now offer a range of new added value services. White label provision and web integration
increasingly common

Service level agreements increasingly tight

Symbol groups have become more popular across the grocery sector, with increased investment in own-label
development. In other sectors branding has never been more important.

The introduction of tightly-managed production techniques has resulted in greater sophistication in distribution
chains

Wholesalers are now expected to have systems in place to run goods direct from production plant to end-users

Disruption in overseas supply chains caused by ‘growing pains’ in emerging markets is becoming increasingly
common.
enhanCed serviCe levels supplY Chain integration

The black and grey markets, and fraud in general is on the increase. Alcohol duty fraud is a particular concern

Sourcing from correct brand owners is becoming more difficult. Fines for the possession of fraudulent stock are
becoming more severe.
fruits  vegetables  wholesalers  challenges  problems  margins  supply_chains  fresh_produce  OPMA  slow_growth  black_markets  low_growth  customer_expectations 
october 2013 by jerryking
Unlikely expansion: When retail brands go wholesale -
Apr. 16 2013 | The Globe and Mail | MARINA STRAUSS - RETAILING REPORTER.

Aldo Group Inc. is on the hunt for retail space – inside the stores of other retailers, as the shoe specialist pursues a cost-conscious expansion in which it is teaming up with a growing roster of indirect rivals.

Merchants ranging from Aldo to fashion purveyor Joe Fresh (owned by grocery giant Loblaw Cos. Ltd.), Reitmans (Canada) Ltd. and Hudson’s Bay Co., have stepped up their partnering efforts, even as they raise the stakes by being tied to sometimes unstable chains....multichannel distribution allows rapid expansion into new markets without the expense or time needed to open new stores....Retailers are trying to cash in on brand awareness and production expertise to reach more customers in a cost-savvy way. But the business model isn’t without drawbacks, as merchants lose some control over the placement, prominence and marketing of their products....For years, in a reverse trend, manufacturers – from Nine West to Apple – have set up their own standalone stores to showcase their products and ensure their brands are not lost among many others within a larger retailer.

“Retailers want to be wholesalers and wholesalers want to be retailers,” Mr. Lichtszral said. “The lines are blurred everywhere … Wholesale distributors are opening their own websites and shipping directly to the consumer and, in doing that, are technically competing with their retail customers.”
growth  retailers  brands  distribution_channels  Aldo  Loblaws  Nine_West  Apple  wholesalers  multichannel  omnichannel  Joe_Fresh  partnerships  Reitmans  HBC  business_models  drawbacks  merchandising  manufacturers  expansions  store_within_a_store  cost-consciousness  Marina_Strauss  standalone  Fortune_500 
may 2013 by jerryking
Evangelist in sheep's clothing
Jun 2, 2010 | FT | by Anna Fifield.

Ideas for JCK

Do
* Hold onto your brand's core msg. "Having a strong identity from the
beginning helps shape the org. as it evolves."
* Use retail to create a deeper customer connection "There's nothing
like being able to tell your full story in 3 dimensions."
* Hire a specialist team of retail advisers when opening in new mkts
"We've been successful over the yrs. because when we do something new,
we find people who can teach us."
* Connect with the local community to create local advocates "It's all
about repeat business & people talking to people."

Don't
* See wholesale and retail as substitutes - they should be complementary
"If we take the eye off our wholesale business then our cash cow dries
up & we can no longer fund our retail expansion."
* Be afraid to be anti-fashion "We're about longevity, not [about being]
disposable."
* Forget that great brands grow through word of mouth "Our most
important question is: 'Would U recommend Icebreaker to others?'"
brand_identity  ProQuest  New_Zealand  entrepreneur  clothing  international_marketing  lifestyles  branding  outdoors  apparel  storytelling  Communicating_&_Connecting  WoM  longevity  3-D  customer_intimacy  think_threes  retailers  wholesalers  cash_cows  disposability  brands 
june 2010 by jerryking
Wholesalers Set Up Shop Online to Tap Consumers - WSJ.com
Sept. 18, 2008 article by Shelly Banjo on steps a wholesaler took to sell directly to consumers.
wholesalers  online  e-commerce  consumers  Shelly_Banjo 
january 2009 by jerryking

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