Industry Analysis & Industry Trends
The economic recession has had a dismal effect on men's and boys' apparel wholesalers. With decreased discretionary spending in 2008 and 2009, retailers have been offering deep discounts to consumers to retain sales. Due to weak downstream demand, wholesalers were left with excess inventories and slashed prices to move stock. In their ongoing quest to cut expenditures and sustain margins, retailers have been sourcing directly from manufacturers, causing wholesalers to cut prices to remain relevant in the apparel supply chain. Meanwhile, retailers are enticed with low-cost imports, thanks to cheap foreign labor. As a result, wholesalers are left with lower demand... purchase to read more
Industry Report - Industry Locations Chapter
Many wholesalers locate their facilities near clothing manufacturers, key suppliers to the industry, as well as men's and boys' retailers to reduce shipping costs. However, geographic spread in this industry is becoming less important as consumers increasingly shop via the Internet. Wholesalers are in danger of being marginalized as manufacturers initiate directly selling to consumers.
The Mid-Atlantic has the largest number of wholesalers, accounting for 29.1% of total industry establishments. Many wholesalers are located in this region because 24.4% of men's and boys' manufacturers are located here... purchase to read more