The death of wholesale partnerships has been greatly exaggerated.
There was a time, not long ago, where retailers believed that going direct-to-consumer (DTC) was the path to profitability. And, if one worked through the logic, it seemed like everything added up. Cut out the wholesale partner and see a lift in both margins and profits. Why would a brand even want to be one step removed from their customers to begin with?
Turns out, the math was not working out as expected.
By trying to cut out the middleman, brands became the middleman themselves. And, that meant taking on all the related costs which wiped out any possible profit advantage.
Call it a curious case of becoming the very thing you hate.
It turns out, there is a lot of value that brands can extract from wholesale relationships. But the big, more important question is: how exactly can a brand get access to this value?
It’s very exciting to see a brand tout their success on social media of making it onto the shelves of a Costco or a Walmart. Others would simply look at the end result but fail to understand the work behind getting onto those coveted shelves.
Our goal is to provide guidance for brands that choose to enter wholesale partnerships.
We will ensure that you enter these partnerships smoothly, avoid costly mistakes and see meaningful growth. We have also interviewed people from both brands and retailers to give you insights into how partnerships are created and managed.
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