Industry Analysis & Industry Trends
Downstream demand for discretionary purchases of clothing will support industry growth over the next five years, after weak economic conditions hurt wholesalers. Nevertheless, the infiltration of low-cost imports has intensified price competition for domestic wholesalers, cutting into profit margins. Over the five years to 2019, imports will make up an increasing proportion of domestic demand; therefore, operators will need to cut their own prices and offer more services to buyers to remain relevant... purchase to read more
Industry Report - Starting a New Business Chapter
It is relatively inexpensive to set up a wholesale operation. License agreements provide wholesalers with exclusive distribution of certain brands. Penalties are imposed on the infringement of patents.
New entrants are faced with significant startup costs to acquire stock for distribution. Expenditure on apparel can be costly if supply contracts with low-cost third-party manufacturers are not in place. Capital costs, on the other hand, are generally limited to the purchase of vehicles. These vehicles can be leased, which can assist with cash flows. Warehouses can be rented, so they do not pose a great cost for many potential wholesalers... purchase to read more