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Showroom for a clothing line. The brand owner with a potential buyer viewing the collection and selecting styles to order for wholesale

HOW TO WHOLESALE YOUR FASHION BRAND

Grow your business by incorporating wholesale into your business structure.

BENEFITS OF WHOLESALE

Exposure: Your brand will be sold to a larger audience geographically, as well as feature on other websites and social channels via stockiest and their customers.

Increased margins: Not only because bulk production & shipping prices are reduced with increased quantity, but also because fixed expenses will then be shared cost across more units = better margins.

Reduced risk: Indents (pre- season orders from retailers) allow you to place your bulk orders on styles and QTY that are confirmed sold before you produce them, you can also use this data to reduce gambling on which styles/colour/sizes and units to order for your own physical / online store.

Increased cash flow: You can request a 30-50% deposit upon confirmed order from your W/S customers with the balance due on / before for delivery. As the W/S prices are higher than your raw cost, these deposits can essentially pay for your own bulk order deposit and more.

WHOLESALE OPTIONS

IN-HOUSE REPS

Pro’s: All of the attention is on your band.
Con’s: 
Smaller network of buyers. Fixed overheads which may be paid in a combination of a fixed wage and commission.

PHYSICAL AGENCIE

Pro’s: Wide network of buyers. Added exposure. Professional showroom. No fixed overheads as agencies are paid a commission on paid invoices only, which is generally 10-15% on W/S prices.
Con’s: Attention to your brand will not be exclusive.

VIRTUAL AGENCY

Much the same as a physical agency, however, the audience may be larger / worldwide and made convenient for W/S online ordering for approved buyers. Some great wholesale platforms are:

https://www.brandboom.com/

https://joor.com/

https://www.tradegala.com/

DISTRIBUTOR

All the same as an agency except they will pay 100% upfront on orders on behalf of their buyers which reduces risk and helps cashflow for the brand, however, their commission rate is higher than a standard agency, often around 25-35% on W/S prices.

TRADE SHOWS & FASHION SHOWS

Pro’s: A great way for buyers to discover new brands and to meet the designer (if present), which strengthens the business relationships. Added exposure by the event marketing. Access to a large audience. Opportunity to collect large volume orders in a short time. Opportunity to schedule bookings with existing and new buyers as well as catch walk-bys.
Con’s: A showroom booth can be costly, especially for the high traffic locations (usually around $6000 + furniture hire for 2 – 3 day events ), and though you can potentially collect large orders, you may also risk not getting any. Preparation is key, schedule as many appointments as possible and look at ways to direct traffic to your booth if you are not in a high traffic area.

WHOLESALE TIMELINE


Stockists have key selling seasons & budgets that they allocate for accordingly, if you miss their indenting window, you miss out on W/S orders. We have created a W/S timeline chart that helps to accurately plan timelines for all stages: design – sample – indent – bulk – and in-store delivery according to key selling months. Your wholesale orders must be confirmed by the ‘Bulk PO cut off’ dates’ specified by the season in the wholesale timeline chart below in order to meet relevant in-store store dates.

Southern hemisphere
1.     SPRING / SUMMER: August / September 
2.     HIGH SUMMER: October / November
3.     AUTUMN: February/March
4.     WINTER: April/May
Northern hemisphere
1.     SPRING/ SUMMER: April
2.     HIGH SUMMER: June
3.     AUTUMN: August
4.     WINTER: September/November

HOT TIP

Generally, stores are given exclusivity rights to stock a brand by the postcode or shopping area. In exchange of the exclusivity rights, you should request a minimum order with your terms to ensure your brand is properly presented in their store. The minimum amount per order/season may be between $2000-4000.

TIMELINE CHART

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