Wholesale is in growth mode.
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For fashion brands, their big challenge is how to stand out amongst a sea of competitors vying for the attention of retailers. That’s because growing wholesale requires a strategy that involves getting in front of new retailers, while also deepening existing ones. When done right, a really good strategy can be lucrative for the brands. Wholesale is a high-margin, low-cost category that typically represents about 60 percent of total brand sales.
A new report from NuOrder by Lightspeed, a wholesale e-commerce platform , gives insider tips on how to get the attention of retailers. What’s even better is that those tips are based on industry insights from wholesale leaders at Bloomingdale’s, Spanx, and Saks Fifth Avenue. Together, they’ve compiled a five-prong strategy for B2B growth where one’s brand can stand out amongst a sea of competitors. The five key tips are aimed at helping brands craft a compelling product story, sell deeper into existing accounts, get in front of the right new retailers, future-proof B2B marketing plans, and, thrive in the era of digital wholesale.
Lead with unique brand stories
“I’m able to go through linesheets on my own, but I’m looking for brands to provide that context. Inspiration slides, information on how the collection came together, a rail mocked up of how they envision it in their retail store. Having all of those elements is really important,” a buyer for the women’s contemporary collection at Saks Fifth Avenue said.
Brands are advised to build a fully-branded, multimedia storytelling site that also includes the latest product collections. That’s because the website is often a brand’s first impression to retail buyers.
Buyers want to know the brand story. This knowledge helps them select the best products for their customers, as well as merchandise those items in the most effective way to capture the sale. With so much competition, quality alone is not enough. A compelling product narrative includes origins and inspirations. It may be less about a product and more about a specific shopper, from busy moms to outdoor enthusiasts. Having this information and access to brand assets allows retailers to merchandise for maximum sell-through.
Other positives include a B2B commerce solution that allows for a B2C-like checkout, with customized linesheets and catalogs by category. An added plus would by hyper-curated assortments based on store, region and other key factors, such as tailoring merchandise by local trends or focusing on casual wear around vacation destinations.
Market beyond the trade show
Underwear and lifestyle brand Spanx noticed a shift in favor of digital buying options. The company used B2C content to develop a new B2B commerce portal. That gave retailers an improved shopping experience that results in campaigns driving up to 96 percent conversion rates among its top accounts.
Brands have moved away from the big national shows to regional trade events to be more cost-effective and tactical. That shift has also put the focus on rep-driven email and outbound marketing as the preferred methods of communication.
To separate itself from competing emails, a brand can sort buyers and send tailored product assortments based on profiles or past interactions. Tribal Sportswear went a bit further to offer a personalized touch, moves that drove outsized gains. The company updated linesheets to reflect local currencies, and it made sure that inventory data from local warehouses were up-to-date. The report noted that orders soared after the brand implemented both changes.
The NuOrder noted other high-impact marketing touch points. They include partnering with key influencers on product campaigns and creating exclusive broadcast channels for wholesale content. Examples of new media formats include 3D images and showrooms where immersive virtual storefronts are curated for each buyer and shoppable videos where runway shows and product clips are turned into clickable goods. Other added features include certifications where product is clearly labeled organic, sustainable or vegan, and fabric photos that provide up-close detail on quality, color and texture.
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“Whatever brands can do to make it feel like you’re there, even if you’re not, has been very helpful,” according to one buyer for the women’s modern collection at Bloomingdale’s. “What’s great about [a B2B commerce solution like] NuOrder is you can shop the entire rack, hover over the picture, it will take you directly to the style, and you can just add it to your card—and it just makes for a seamless experience overall.”
Focus on ideal-fit retailers
As retailers purchase more conservatively, brands need to diversify their distribution through special and regional retailers. But that also means brands need to be picky with which retailers they’re going to sell to. Check out the retailer’s website, customer reviews and what kind of data do they provide to their vendors. Also, are there signs that the business is struggling financially?
“A mismatched retailer can undo years of hard work and meticulous detail invested into building your brand,” the report noted.
Brands also can help retailers provide a differentiated shopping experience for their retail customers. “Be consultative when suggesting assortments, keeping in mind local retailers who stock yoru product in a region or market. For instance, a store won’t want to carry the same items as a competitor a few blocks away, but they will still want to curate frequently purchased products,” the report advised, adding that brands also should understand a retailer’s ordering and replenishment cycles to enable on-schedule delivery.
Become a data-driven partner
The report said that brands can solidify their place as a strategic partner by tapping into the data that they have, and being prepared with up-to-date product information. Brands can do this by analyzing sales reports to spot bestsellers and discover category-specific trends. Using this data allows brands to become demand experts, knowing when emerging trends will either hit critical mass or begin to wane.
Because a one-size-fits-all approach is the fastest way to lose wholesale partners, the report advised brands to tailor their merchandise assortments by region, season, demographics, consumer segments, and other key variables to increase sell-through rates and minimize retailer returns.
Another tip for brands was offering exclusive product listings or color options to a few of the brand’s most-valued wholesale clients.
Find a scalable partner
NuOrder, whose platform provides brands access to over 500,000 retailers, with 120 software integrations, in 100 global markets, advises brands to find the right technology partner that can bring all sales, inventory and marketing data in one place. That includes rich media experiences, integration of systems, such as point-of-sale and accounting, and easy B2C checkout.
“Getting internal teams, as well as both sellers and buyers, all working off the same platform and data creates win-wins throughout the wholesale value chain,” NuOrder concluded.
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