Industry Analysis & Industry Trends
Over the five years through 2016-17, revenue for the Clothing Wholesaling industry is expected to rise only marginally, by an annualised 0.2%. As the global reach of many clothing companies grows, wholesale bypass is becoming increasingly prevalent. Low-cost producers in countries such as China and Vietnam are becoming more accessible, selling products directly to retailers and bypassing wholesalers. The Clothing Wholesaling industry's weak performance can also be attributed to low underlying demand from the clothing retail sector. The rise of online clothing stores has undermined demand for products sold through traditional retail channels, which has undercut retailers' demand for products sold by wholesalers. Revenue is expected to decrease by 1.8% in 2016-17, to reach $8.36 billion... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry to the Clothing Wholesaling industry are moderate. The major barrier to entry is the cost of establishing a warehouse and distribution system using technologically advanced equipment. The marketing costs involved with establishing a customer base are also high. Costs to acquire stock can be considerable, especially for operators that want to obtain bulk discounts.
Existing wholesalers have established links with manufacturers and retailers. This may prove to be one of the most significant barriers for new entrants to overcome, as these relationships are often contractually binding and exclude manufacturers and retailers from dealing with any new wholesalers... purchase to read more