Wholesale; Achieving Success in 2024
In the year 2023, the retail wholesaling sector experienced a slight downturn. This was largely due to buyers, conscious of a potential decrease in consumer spending, choosing to invest in well-established brands that have proven their worth over time.
Nonetheless, as we move into 2024, it is predicted that buyers will begin to take on more risks, moving towards the introduction of new products and the forming of new partnerships. The objective is clear - they are looking to introduce innovative products that will not only attract new customers but will also provide existing shoppers with compelling reasons to maintain their loyalty. This strategy is believed to enhance the overall shopping experience, fostering a sense of trust and dependency on the retailer.
Building Partnerships
Buyers are actively seeking to create robust partnerships that offer the opportunity to test and trial products. If a product shows promising performance, they want the certainty of being able to secure additional stock. On the flip side, if a product does not live up to expectations or fails to draw the attention of customers, they would appreciate the wholesaler offering solutions to tackle any significant losses - such as proposing product swaps or implementing additional marketing strategies.
To truly thrive in the wholesale industry, it's important to establish recurring orders and forge long-term partnerships. The ultimate goal here is to progressively increase order values and grow your wholesale portfolio. Having a clear understanding of this when initiating conversations with potential partners is crucial. Looking past the initial order is important, but appreciating what the partnership could grow into the longer term. These partnerships can also serve as a valuable source of insight into product performance, offering data that can guide your future decision-making.
Reactivity
Within wholesale this year, responsiveness is key. If a product proves to be a success, buyers want the ability to reorder swiftly to meet their customers' evolving needs. Lengthy lead times or delayed delivery dates could potentially dissuade buyers from investing in your product in the first place.
The versatility and adaptability that wholesale offers will continue to make it an attractive business model, particularly in the face of challenging retail environments. Retailers highly value the ability to interchange products to meet their customers' diverse needs. While this might not always be in the best interest of the wholesaler, preserving long-term partnerships should always be a top priority.
Sustainability
None surprisingly, sustainability has been brought to the forefront of many retail buyers' agendas. They are showing an increasing interest in understanding the supply chains of businesses and their sustainability practices. It's important to ensure your sustainability commitments are appealing enough to retail buyers and do not deter them from stocking your products.
Personalisation
One particular challenge that the wholesale industry is expected to face in 2024 is the growing trend towards personalisation, both in terms of customer experience and product offerings. Retailers are striving to offer a multitude of options to their shoppers without the risk of having to purchase large quantities. Understanding how to navigate this challenge will be essential for long-term success. There isn't a one-size-fits-all solution, but the flexibility that comes with independent brands will likely prove beneficial here.
Starting The Conversation
Lastly, it is worth considering the use of a variety of sourcing methods such as online wholesale, marketplaces, industry trade events, and direct-to-manufacturer contacts. By diversifying your sources for retail buyers, you increase the likelihood of discovering and building high-quality, long-term partnerships. Don't just wait for retailers to come to you - it is a far more appealing conversation if you approach the buyer and share why you believe your product will work well and benefit the buyer and their store.
If you're considering starting, growing, or expanding your wholesale presence and are uncertain about your next steps, feel free to reach out. With over 20 years of experience in both retail and wholesale, Lisa May is highly qualified to assist you on this path.