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  • Writer's pictureEdwina Walker

SHE-IN YOUR BUSINESS, GIRL!

Fashion Companies that Serve as Both Wholesalers and Retailers: Pros and Cons



During the pandemic, we saw A LOT of social media fashion businesses enter the market, and they faced a very unique obstacle that didn't get enough attention or discussion in my opinion.


In the fashion industry, some companies serve as both wholesalers and retailers, meaning they produce clothing and accessories for wholesale distribution to other retailers and also sell directly to customers through their own retail stores or e-commerce sites. While this dual role can offer benefits, such as better control over supply chain and reduced costs, it can also make it harder for independent fashion retailers to compete and turn a profit.


On the one hand, wholesaler-retailer companies can use their purchasing power to secure lower costs for materials and production, which can result in lower prices for customers. They can also offer a wider range of products and styles, as they have access to their own in-house production and the products of other brands they distribute. This can make them a one-stop shop for customers and increase their customer base.


On the other hand, when wholesaler-retailer companies sell their products directly to customers through their own retail stores or e-commerce sites, they compete directly with independent fashion retailers. This competition can make it more difficult for these retailers to turn a profit, as they may be unable to compete with the lower prices and wider product range offered by the wholesaler-retailers.

While being both a wholesaler and retailer can offer benefits to fashion companies, it can also make it challenging for independent fashion retailers to stay afloat. Independent retailers HAVE to find ways to differentiate themselves, such as offering unique and exclusive products, providing exceptional customer service, or catering to a niche market, in order to succeed in the competitive fashion industry.


Personally I feel it's a bit unethical to retail and wholesale the same products because it just seems like the market is forever rigged in favor of the manufacturer, yet it happens every day in the online fashion business. Does it mean that you can't succeed in this niche? The answer is an absolute no because we have clients who consistently make 30k-100k a month selling women's fashion, but to say it's easy for them would be completely disinegnious.


If you're in this niche or want to enter into it, the name of the game is KNOWING YOUR TARGET CUSTOMER FIRST, EFFECTIVE BRANDING, CONSISTENCY, GREAT CONTENT, and HEAVY INVESTMENT IN MARKETING.


What are your thoughts on manufacturers (wholesalers) who poach business from thier own clients by also retailing the same products at rock-bottom prices??



Regenerate response


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