Worse for wear: Wholesale bypass and weak demand from retail have reduced revenue

Revenue for the Clothing Wholesaling industry is expected to decline by an annualised 4.7% over the five years through 2018-19. Wholesale bypass has become increasingly prevalent as the global reach of many clothing retailers has grown. Low-cost producers in countries such as China and Vietnam have increasingly sold products directly to retailers, leaving wholesalers out of the supply chain and therefore reducing industry revenue. Furthermore, low underlying demand from the clothing retail sector has also negatively affected industry performance. The rise of online clothing stores has undermined demand for products sold through traditional retail channels, undercutting retailers' demand for products sold by wholesalers. Industry revenue is estimated to fall by 2.8% in 2018-19, to $6.8...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Low-cost producers in countries such as China and Vietnam are increasingly bypassing wholesalers
  • Clothing retailers have increasingly purchased inventory directly from manufacturers
  • Continued wholesale bypass is forecast to push smaller players out of the industry
  • Industry Report - Industry Key Buyers Chapter

    The Clothing Wholesaling industry exhibits low market share concentration, with no player accounting for more than 5% of revenue. The industry wholesales a large variety of products and brands, making it difficult for a company to dominate the market. Most industry players are small, independent businesses. Almost 50% of clothing wholesalers are non-employing, with about 6% of firms employing more than 20 people. Approximately 36% of industry participants earn between $200,000 and $2.0 million per annum, and 16.6% have sales greater than $2.0 million.The industry faces the growing threat of wholesale bypass. Larger retailers are increasingly purchasing imported clothing directly from manufacturers and bypassing traditional wholesalers. Fur...purchase to read more.

    Additional Insights for the Clothing Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Clothing Wholesaling Industry are

  • Guaranteed supply of key inputs
  • Ability to control stock on hand
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Demand from clothing retailing and Demand from online shopping in the Clothing Wholesaling industry impact industry performance..

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    What's in this report

    What is the Clothing Wholesaling Industry?

    Industry companies wholesale clothing by purchasing stock from clothing manufacturers and then selling the garments to retailers, generally with little or no development of the items. Most industry wholesalers perform sales and administrative activities, such as establishing relationships with manufacturers and retailers to ensure a reliable supply and demand of stock, marketing and advertising their products, and transporting and storing stock.

    Industry Products
  • Men's clothing
  • Women's clothing
  • Children's clothing
  • Infants' clothing
  • Sleepwear and underwear
  • Other clothing
  • Industry Activities
  • Clothing wholesaling
  • Hosiery wholesaling
  • Millinery wholesaling
  • Leather clothing wholesaling
  • Sports clothing wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from clothing retailing
  • Demand from online shopping
  • Real household disposable income
  • Trade-weighted index
  • Demand from department stores
  • Consumer sentiment index

  • Current Performance
  • Wholesale bypass
  • Profit
  • Falling prices
  • Organic cotton
  • Chart: Revenue Growth

  • Industry Outlook
  • Wholesale bypass

    and the internet

  • Dominance

    of imports

  • Employment

    and profit

  • Table: Clothing Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Clothing Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Department Stores
  • Clothing Retailing
  • Duty Free Stores

  • Key Selling Industries
  • Knitted Product Manufacturing
  • Leather and Leather Substitute Product Manufacturing
  • Men's and Boys' Wear Manufacturing
  • Sleepwear, Underwear and Infant Clothing Manufacturing
  • Tailoring and Clothing Accessories Manufacturing
  • Women's and Girls' Wear Manufacturing

  • Products & Services
  • Women's clothing
  • Men's clothing
  • Other clothing
  • Children's clothing
  • Infants' clothing
  • Sleepwear and underwear
  • Chart: Clothing Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Women's and girls' clothing retailers
  • Department stores
  • Men's and boys' clothing retailers
  • Other markets
  • Sleepwear, underwear and infant clothing retailers
  • Chart: Major Market Segmentation for the Clothing Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Clothing Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Clothing Wholesaling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Clothing Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Clothing Wholesaling Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • An online information and data storage technology that allows operators to remotely access and manage data.
  • Vertically Integrated
  • A company that controls its supply chain (or the majority of it) from manufacturing to end sales.
  • Wholesale Bypass
  • An increasingly popular trend in retail and manufacturing industries where retailers source products directly from producers to cut costs.
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    Why buy this report?

    IBISWorld’s Clothing Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Clothing Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Clothing Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Clothing Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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