Threadbare: Wholesale bypass and weak demand from retail have unwound revenue

Revenue for the Clothing Wholesaling industry is expected to decline at an annualised 4.6% over the five years through 2018-19. Wholesale bypass has become increasingly prevalent as the global reach of many clothing retailers has grown. Countries with low production costs such as China and Vietnam have increasingly sold products directly to retailers, leaving wholesalers out of the supply chain and subsequently 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 2.6%...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 14-19
-4.6%
Forecast Growth 19-24
Profit
Employment
15,289
Businesses
2,790
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 - Starting a New Business Chapter

    The Clothing Wholesaling industry exhibits moderate barriers to entry. The cost of establishing a warehouse and distribution system using technologically advanced equipment forms the major barrier to entry. 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 can 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. Inc...purchase to read more.

    Additional Insights for the Clothing Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the Clothing Wholesaling 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
  • Internal
  • External

  • 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
    Includes:
  • 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
    Cloud
  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Clothing Wholesaling market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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