CAN YOUNG LUXURY BRANDS BYPASS WHOLESALE?
- absoluteblack
- Mar 8, 2016
- 1 min read
We have found an interesting reading on BOF about young brands are adopting a direct-to-consumer model, raising the question: Can they really do without wholesale?
It's becoming the common trend that new brands promote their products and identity through different social media platforms. Online shopping enables great opportunities for these young growing brands, allowing them to communicate with the consumer directly with daily interactions. The marketing strategy becomes more direct to the end-user with affortable budget for different scale of business.
"But the rise of e-commerce and social media platforms like Facebook and Instagram has been a boon to young labels, enabling fashion start-ups, which typically lack the capital to launch their own retail stores, to connect directly with consumers, bypassing middlemen like department stores, boutiques and other wholesale partners. This not only means margins that can be three to four times higher, it also allows young labels to own the valuable interface with the customer, as well as the associated data."
BOF By Lauren Sherman, February 24, 2016
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