DISCUSSION QUESTIONS: Is the wholesale model in soft goods retailing at odds with direct-to-consumer initiatives? What criteria should drive brands’ decisions to shift away from wholesale relationships?
Interactive Edge’s CEO, Zel Bianco comments, featured on RetailWire’s Braintrust:
This is about margin but it is also about brand consistency. If you think about it, its very much like the automotive business model. You don’t see BMWs or any other car brand being sold by anyone other than a BMW dealer. Even used or, should I say, pre-owned BMWs are sold while being very mindful of the brand. Wholesalers do not become part of the equation until dealers sell cars to wholesalers. It does not surprise me that brands like Nike and Under Amour want to control every step of the brand in the sales cycle and beyond.
Read the entire article from RetailWire:
Wholesale curtailed. Is retail’s favorite model faltering?