Why Should You Build Strong Relationships with Retailers in the Clothing Industry?
In the highly competitive world of fashion, wholesalers and traders are essential players in the supply chain, acting as the vital connection between manufacturers and retailers. For traders or wholesalers in the clothing industry, the main focus is usually on maximizing profits. One way to successfully accomplish this is by selling your products directly to retail stores or chains. These businesses often purchase clothes in large quantities and are willing to pay a slightly higher price compared to distributors and other wholesalers. For companies that are not directly involved in retail, it becomes crucial to strengthen relationships with the retailers who sell your products.
Retailers are the best buyers for your business. Here is why:
1. Volume Purchases: Medium- and large-size retailers and chains can be bigger buyers than some wholesaling companies.
2. Market Expansion: You can easily access a new market by working with local retail stores and chains. That new market can become a great revenue stream for your business.
3. Frequency of purchases: Retailers need to constantly refresh and update their stock levels and collections, making them frequent guests in your warehouse.
4. Input Loop: Retailers contact customers directly and can give wholesalers input on product performance, trends, and preferences. This information can be invaluable for upcoming changes and new trends in the fast-changing environment of the clothing industry.
We hope that convinces you of the importance of retailers in your supply chain. Now let’s talk about how to establish a relationship with those key players.
Improving Relationships with Retailers: Tips for Achieving Success
1. Gain a clear understanding of their business needs: To cultivate a solid rapport with retailers, it is crucial to develop a comprehensive image of their business model, target market, and the obstacles they encounter. This understanding enables you to customize your offerings and services to cater to their individual requirements, positioning your business as an indispensable asset.
2. Ensuring a Reliable and Steady Source: Retailers highly value consistency and reliability, frequently placing them above all other qualities. It is crucial to prioritize delivering the correct products, in the appropriate quantities, and within the designated timeframe in order to establish a strong foundation of trust. Having a reliable system in place can greatly benefit a retailer by simplifying their inventory management and minimizing the chances of running out of stock or having excess inventory.
3. Provide Affordable Rates: Ensuring top-notch quality is crucial, but it’s also important to consider offering competitive pricing to become a desirable choice for retailers. It’s important to focus on offering value for money that benefits both parties’ profitability, rather than just being the cheapest option.
4. Talk with the Management: Friendly conversation with decision-makers in the company is the best way to enhance your relations. You should feel that person and know when to make a joke and when to keep a straight and professional tone. That increases trust and transparency between partners.
5. Offer valuable market insights: As someone who has a deep understanding of the market, it is highly beneficial to share your insights on emerging trends, customer preferences, and industry shifts with your retail partners. Giving them an advantage in their field allows you to keep succeeding in your work.
6. Diverse payment terms: Leverage different payment terms with your key retail partners. Try to go on credit based payment terms, allowing the retailer to increase his cash flow. While that approach is quite risky for a supplier side, that type of move will certainly be a great competitive advantage when you present your offerings to retailers.
Retailers hold huge power in the market: customer flow, brand recognition, and customer convenience. Each and every wholesaler or trader in brand new clothing industry should do one of those: Think of opening your own retail branch or enhancing your relationship with retail clients, if you decide to keep things as they are, your failure is inevitable.