Is wholesale the key to a winning year for fashion brands?

For obvious reasons, e-commerce exploded during the pandemic – according to IMRG, which tracks online retail activity in the UK, e-commerce sales sky-rocketed by +35% in 2020 at the height of the crisis – and brands responded accordingly.

Their DTC and e-commerce channels became the main focus of their strategic growth investments, as physical stores faced lengthy lockdowns and the recovery in foot traffic in towns and cities was slow.

However, as we have emerged into a new post-pandemic era, a need for a more balanced approach has arisen. E-commerce growth in the UK has settled to around +5% (similar to the level of growth witnessed prior to the pandemic) and with consumers adjusting to new hybrid lifestyles, their shopping habits have changed as they return to physical retail. As a result, strategic omnichannel priorities for brands are evolving once again.

NuORDER by Lightspeed surveyed over 250 leading brands in the fashion industry to understand the role wholesale will play in their omnichannel strategy. In the 2023 State of B2B Commerce Report: Building a Resilient Wholesale Business, respondents predict that wholesale growth will take precedence over e-commerce growth for the first time since pre-pandemic. A prior survey in 2022 showed e-commerce taking precedence, so this focus on wholesale is a marked shift in the past year.

Brands, which have previously prioritised their own direct channels, are now recognising the need to have more diversified routes to market and, the report shows, that those who nail their wholesale strategy can generate additional millions in revenue. Growth expectation for wholesale among fashion brands has quadrupled since 2020, when e-commerce was at its height.

Why does wholesale hold so much promise for 2023?

•       Wholesale growth strategies have returned to numbers seen pre-pandemic, according to the NuORDER 2023 State of the B2B Commerce Report, with an even split between retailers selling more into their existing retail base and sourcing new retail accounts
•       In the pandemic era, finding new wholesale accounts took second place to brands servicing existing accounts. This has now changed with multi-brand retailers also looking to take on new brands to differentiate their offerings
•       Wholesale offers clear benefits to brands when it comes to growth, offering expansion opportunities into new markets and boosting marketing efforts
•       Additional millions in revenue can be generated by focusing on expanding wholesale, in addition to direct channels

The ROI potential for a wholesale strategy is clear but making the most of the opportunity will depend on making the right decisions and implementing the right tech stack. NuORDER’s 2023 Predictions eBook made it clear that brands considered data and technology to be critical for forging a better path in the years to come. This trend is further supported by the NuORDER 2023 State of B2B Commerce Report in which 70% of brands confirmed that they used data and technology to inform their business decision-making.

Tactics to succeed in wholesale in 2023

•       Ensure you act on full and complete data. Many successful wholesale brands use tech insights to inform their decision-making (such as growth rates and sales data to optimise their product strategy), but efforts can be hampered from a lack of visibility into all data. An across-the-board view of data from buying and merchandising is essential to provide a holistic view.
•       Integration Is A Must To gain full data visibility, some three in four fashion brands surveyed say they are using an ERP (enterprise resource planning) integration to sync their product order and pricing data. Integration is integral as it empowers the streamlining of work flows and helps avoid costly errors. Brands need a technology tool that is easily customisable to their business model; something that's often overlooked by brands when scouting for a tech solution.
•       Use data to prioritise wholesale channel development. When brands have visibility into real-time sales, inventory and order data, they can better incentivise existing wholesale buyers to place pre-book orders, and turn one-time showroom and trade show buyers into repeat retail customers using high-touch personalised methods like targeted  email campaigns and promotional offers.
•       Employ data to personalise communications with B2B accounts. Just as it has become essential in B2C communications, personalisation in B2B communication is expected to be an important trend in 2023. B2B buyers expect brands to understand their preferences and needs in just the same way that consumers expect brands to.
•       Forecasting and measuring success is a must. Tools that help brands to predict and understand the success of their offering and help them continue to hone their strategies will be a must this year.

Time to take action

The benefits of a thoughtfully crafted wholesale strategy are clear. By leveraging an industry-leading  platform - such as NuORDER by Lightspeed - brands and retailers are equipped with the  tools they need to develop an effective wholesale strategy.

The service is trusted by more than 3,000 brands and 500,000 retailers and to date, and some £33 billion of orders have been processed through the platform.

If you would like to learn more about the wholesale opportunity in 2023, please click here to download the NuORDER 2023 State of the B2B Commerce Report or click here to schedule a demo.

In proud partnership with