Wholesale companies have a lot going for them. They help keep the wheels of commerce greased and the supply chain running, barring a global catastrophe. Regardless of the industry, wholesalers can help most companies save money and grow their businesses.
What is wholesale?
Before delving too deeply into the subject at hand, let’s establish a definition of what we mean by the term “wholesaler.” Generally speaking, wholesaling refers to a type of business that sells products in bulk to other businesses. Unlike a retail business, wholesale businesses sell to other business entities, not directly to consumers.
Wholesalers often establish long-term trusting relationships with individual retailers.
Thanks to these relationships, the wholesale market is booming. In June 2021 alone, total US sales for the wholesale market exceeded $ 588 billion. After a sharp drop in profits at the start of the Covid-19 pandemic, monthly sales by wholesale companies have been on a steady upward trajectory ever since.
Wholesalers offer their customers greater ease of operation, various offers and, in most circumstances, access to products from around the world.
As these increased sales demonstrate, more and more companies are choosing to do business with wholesalers. From clothing and lifestyle to food and medical and pharmaceutical supplies, wholesale businesses run the gamut.
Yet in each of these industries, wholesalers are making a difference and causing real change in the world. Consider the three points listed below as a great starting point for learning why this is true.
1. Clothing wholesale platforms are helping emerging brands
The arrival of the coronavirus put a lot of pressure on local businesses. Visiting tourists, shoppers, and regulars stayed home by mandate or choice. Everything from coffee shops to flower shops to corner stores to independent bookstores took a hit during the start of the pandemic.
Caught between local healthcare restrictions and a temporarily sinking global supply chain, many small business brands were devastated in 2020.
Today, however, Wholesale womens clothing Markets are helping emerging brands make a comeback. Bridging the gap between local stores and independent brands around the world, these markets provide a way to bring emerging brands to retail stores around the world.
These wholesale markets also help retailers access artisan brands. This allows the unique products of these brands to reach stores where they might not have been able to before.
In many ways, clothing and lifestyle wholesaling platforms set a clear and direct path for enterprising brands to make their way onto the shelves of local independent stores. Newer brands have a chance to establish themselves despite the setbacks of the last 18 months.
These wholesale markets are beneficial for businesses, especially local ones
Considered more broadly, these markets provide a win-win situation. Apparel wholesaling platforms give independent brands the ability to reach hundreds of thousands of retailers profitably. And local boutiques, which often have to compete with chain stores like Target and H&M, also have access to more exclusive, high-quality styles.
2. Food wholesalers are helping allergy-friendly businesses prosper
Starting a new food business is not an easy task. Despite considerable market penetration challenges, more than 15,000 new food products they are introduced every year. The failure rate of these startups is high, so whatever support these businesses can get from wholesale companies is crucial to their success.
Specialty Food Markets: Business Creation and Satisfaction of Consumer Demand
Many of these food startups are targeting specific or niche types of diets as food allergy rates continue to rise. An increasing number of adults and children are dealing with allergies, primarily from offenders such as gluten, dairy, eggs, nuts, and soy. As a result, food companies are reformulating their products and creating new lines of allergy-friendly foods to meet increased consumer demand.
This is all good news for food wholesalers who are focused on expanding their catalog of specific diet or allergy products.
By allowing grocery store shoppers to search for items based on diet type and / or food ingredients, wholesalers can reliably provide products that they know consumers are regularly looking for in the aisles of their local grocery stores.
One wholesaler that offers this type of expanded capacity is Mabel. However, this online food wholesale order business goes one step further by offering products based on region, dietary need, and brand equity. Mabel also includes women-owned, small-batch, and eco-friendly brands.
Food wholesalers focused on diet and allergy needs are changing the way products from niche food companies get into the hands of consumers.
3. Medical supply wholesalers working to create more streamlined services
The wholesale medical supplies industry should not be overlooked, especially considering its enormous growth and size. Today, the medical supply wholesale industry in the United States is worth more $ 268 billion and has experienced a growth of 3.8% this year.
America’s Massive National Health Needs
These numbers are perhaps not so surprising given the growing medical needs of Americans as a significant portion of their population ages. In fact, the average American spent more than $ 11,000 on medical expenses, and that number was announced before the pandemic struck.
Fortunately, medical supply distributors understand this growing need and are making changes for the better.
An example of this is Cardinal Health, one of the main distributors of medical supplies in the United States. Cardinal Health offers specialty medical products and pharmaceutical drugs to more than 85% of US hospitals. Cardinal Health recently announced a partnership with Chronicled, a blockchain-powered network in the life sciences industry.
Partnerships such as Chronicled and Cardinal Health will streamline processes and operations throughout the supply chain, thereby better connecting pharmacy providers with customers.
This is certainly not the first large-scale association in the medical supplies wholesale industry. Nonetheless, it provides a high-visibility example of how wholesalers can grow their business by working with partners toward a common goal.
Consider, for example, the pandemic-driven demand for personal protective equipment (PPE) over the past 18 months. This dilemma, faced by almost every hospital system in the world, could have been avoided or solved more quickly with a more simplified and technology-driven process.
Food to go
The wholesale market offers companies of all sizes a host of advantages. Buying in bulk can be more profitable, of course. It can also help businesses looking to expand their merchandise offerings, attract more consumers, and increase their overall sales.
Because wholesalers typically only sell to retailers and not directly to consumers, they allow those retailers to be the source for specialty goods.
The leaders of the wholesale market They are impacting the sales model around the world and should not be ignored. As smart intermediaries between producer and seller, these three examples show how wholesalers can make a notable difference in the way consumers gain access to the goods they want and need.
Image credit: tiger lily; pexels; Thank you!