Lesson Summary

Wholesale is essential for multi-brand retailers who sell products from various brands. These retailers obtain brands through two models: concession or wholesale. In the concession model, brands rent space in the store, have minimum sales targets, and pay a percentage of their sales to the retailer. In the wholesale model, retailers purchase products at a discount and sell them directly.

Businesses benefit from wholesale partnerships as they provide access to a wider customer base and increase sales volume. Three key reasons brands should consider wholesale partnerships include:

• Access to the retailer's reputation and customer base, which can enhance brand visibility and attract potential investors.
• Ability to sell larger quantities in a single transaction compared to direct customer sales, leading to increased sales volume.
• Physical presence in brick-and-mortar stores allows customers to see, touch, and experience the products, potentially driving more sales.

Forming a wholesale partnership can be a strategic move for brands, offering opportunities for growth, better relationships with partners, and increased success. Planning and strategising for wholesale partnerships are crucial steps in maximizing the benefits of such relationships.