Adapting to a shifting wholesale landscape
The wholesale fashion market is undergoing significant changes, forcing brands to rethink their traditional distribution strategies. Retailers are becoming more selective with their inventory, prioritising products that offer strong sell-through rates and minimise financial risk. As a result, many fashion brands are finding it increasingly difficult to secure wholesale agreements on favourable terms.
One of the key challenges brands face is the shift in retailer buying behaviour. Many retailers are reducing their upfront commitments, opting for smaller, more frequent orders rather than large seasonal buys. This approach helps them manage cash flow and reduce excess stock, but it also puts pressure on brands to be more agile in their production and inventory management.
At the same time, department stores and multi-brand retailers are demanding greater flexibility from their suppliers. They expect brands to support markdowns, offer extended payment terms, and provide additional marketing support to drive sales. For smaller and independent fashion labels, meeting these demands can be financially and operationally challenging.
Another factor reshaping the wholesale landscape is the growing influence of data-driven decision-making. Retailers are relying more on sales analytics and customer insights to determine which brands and products to stock. This means that brands must not only have strong design and quality but also demonstrate a proven track record of performance in the market.
In response to these challenges, many fashion brands are exploring alternative distribution models. Some are shifting towards direct-to-consumer (DTC) sales through their own e-commerce platforms, while others are turning to online marketplaces that allow them to maintain control over pricing, inventory, and fulfillment. These strategies enable brands to reduce their reliance on traditional wholesale channels while still reaching a broad customer base.
However, adapting to this new landscape requires brands to be more strategic in their partnerships with retailers. Rather than relying solely on wholesale agreements, brands must find ways to collaborate with retailers in ways that create mutual value. This could involve offering exclusive product lines, leveraging shared marketing initiatives, or using data insights to optimise product assortments.
As the wholesale market continues to evolve, fashion brands that can navigate these changes effectively will be better positioned for long-term success. By staying agile and embracing new distribution opportunities, they can maintain strong relationships with retailers while also expanding their reach through alternative sales channels.
The rise of marketplaces and direct fulfillment
As traditional wholesale channels become more challenging, many fashion brands are turning to online marketplaces as an alternative way to reach customers. Marketplaces such as The Iconic, Myer Marketplace, and international platforms like Farfetch allow brands to sell directly to consumers while maintaining control over pricing, inventory, and fulfillment. This shift enables brands to bypass some of the constraints of wholesale agreements, such as large upfront orders and retailer-imposed markdowns.
One of the key advantages of selling through marketplaces is the ability to manage stock more efficiently. Instead of committing large quantities of inventory to a retailer, brands can list their products on multiple platforms and adjust availability based on demand. This flexibility helps reduce the risk of overproduction and unsold stock, which is particularly important in an industry where trends change rapidly.
Another benefit is the direct relationship brands can build with customers. Unlike traditional wholesale, where the retailer controls the shopping experience, marketplaces allow brands to manage their own product listings, pricing, and customer interactions. This level of control enables brands to maintain their identity, communicate their values, and gather valuable insights into customer preferences and purchasing behaviour.
However, selling through marketplaces also comes with challenges. Brands must handle their own order fulfillment, which requires efficient logistics and inventory management. Customers expect fast and reliable shipping, and failing to meet these expectations can lead to negative reviews and lost sales. To succeed, brands need to invest in robust fulfillment processes, whether through in-house operations or third-party logistics providers.
Additionally, competition on marketplaces can be intense. With multiple brands selling similar products, standing out requires strong branding, high-quality imagery, and competitive pricing. Many marketplaces also operate on a commission-based model, meaning brands must carefully manage their margins to ensure profitability.
Despite these challenges, marketplaces offer a valuable opportunity for fashion brands looking to diversify their sales channels. By leveraging these platforms effectively, brands can expand their reach, maintain greater control over their business, and adapt to the evolving retail landscape.
Building strong brand-retailer partnerships
For fashion brands to succeed in the marketplace model, strong collaboration with retailers is essential. Unlike traditional wholesale arrangements, where retailers take on inventory risk and manage sales, marketplace partnerships require brands and retailers to work together to ensure a seamless shopping experience for customers. This means aligning on everything from product selection and pricing strategies to logistics and customer service.
One of the key areas where collaboration is crucial is inventory management. Since brands retain control over their stock in a marketplace model, they must ensure that product availability is accurately reflected on retailer platforms. Inconsistent stock levels or delayed order fulfillment can lead to poor customer experiences and damage both the brand’s and retailer’s reputations. To avoid these issues, brands should invest in real-time inventory tracking systems and establish clear communication channels with their retail partners.
Pricing strategy is another important consideration. While marketplaces give brands more control over pricing, they must also ensure their pricing aligns with the retailer’s broader strategy. Significant price discrepancies between a brand’s direct-to-consumer store and a retailer’s marketplace can create confusion and erode trust. To maintain consistency, brands and retailers should collaborate on pricing structures that balance competitiveness with profitability.
Marketing and brand positioning also play a vital role in marketplace success. Retailers invest heavily in driving traffic to their platforms, but brands must also contribute by optimising their product listings, providing high-quality images, and crafting compelling product descriptions. Some retailers offer co-marketing opportunities, such as featured placements or joint advertising campaigns, which can help brands increase visibility and drive sales. By working closely with retailers on promotional efforts, brands can maximise their exposure and strengthen their presence in the marketplace.
Customer service is another area where alignment is essential. Since brands handle fulfillment and returns, they must ensure their service levels meet the retailer’s standards. Slow shipping times, poor packaging, or complicated return processes can lead to negative reviews and impact future sales. To maintain a positive reputation, brands should establish clear service level agreements (SLAs) with retailers and invest in efficient logistics solutions.
Ultimately, the success of a marketplace partnership depends on a shared commitment to delivering value for both brands and retailers. By fostering open communication, aligning on key business strategies, and prioritising customer experience, brands can build strong, mutually beneficial relationships with their retail partners. This collaborative approach not only enhances marketplace performance but also strengthens long-term brand positioning in an increasingly competitive fashion industry.
Adapting to marketplace-driven retail
The shift towards marketplace-driven retail is reshaping how fashion brands connect with customers. With traditional wholesale channels under pressure, more brands are turning to online marketplaces to maintain visibility and control over their sales. This approach allows brands to manage their own inventory, pricing, and fulfillment, ensuring a direct relationship with shoppers.
However, success in this space requires a strategic approach. Marketplaces offer vast reach, but competition is fierce, and standing out demands more than just listing products. Brands must invest in high-quality imagery, compelling product descriptions, and seamless logistics to meet customer expectations. Fast shipping and easy returns are now non-negotiable, with shoppers expecting the same level of service they receive from established retailers.
For Australian fashion brands, this shift presents both opportunities and challenges. While marketplaces provide access to a global audience, they also require brands to navigate complex logistics, from managing stock levels to handling customer service. The key is to balance marketplace sales with direct-to-consumer channels, ensuring a cohesive brand experience across all touchpoints.
“Marketplaces are no longer just an option—they’re a necessity for brands looking to stay competitive in today’s retail landscape.”
To thrive, brands must also be data-driven. Analysing sales trends, customer preferences, and marketplace algorithms can help optimise product listings and pricing strategies. Those who adapt quickly and refine their approach will be best positioned to succeed in this evolving retail environment.
Building strong brand-retailer partnerships
For fashion brands to truly thrive in the marketplace model, strong partnerships with retailers are essential. Unlike traditional wholesale relationships, where retailers handle inventory and fulfillment, marketplaces require brands and retailers to collaborate more closely on everything from logistics to marketing. This shift demands transparency, agility, and a shared commitment to delivering value to customers.
One of the key factors in a successful partnership is alignment on brand positioning. Retailers and marketplaces often have their own customer demographics and expectations, so brands must ensure their product assortment, pricing, and messaging resonate with the platform’s audience. A cohesive brand presence across multiple channels helps maintain consistency and trust, which is crucial in a competitive market.
Operational efficiency is another critical element. With brands managing their own fulfillment, seamless coordination with marketplace partners is necessary to ensure fast shipping, accurate stock levels, and smooth returns. Delays or inconsistencies can quickly erode customer confidence, making it vital for brands to invest in robust inventory management systems and reliable logistics partners.
Marketing collaboration also plays a significant role. Many marketplaces offer promotional opportunities, from sponsored listings to exclusive campaigns, and brands that leverage these strategically can boost visibility and sales. Working closely with marketplace teams to optimise product placement, seasonal promotions, and influencer partnerships can drive engagement and conversion.
“A strong brand-retailer partnership isn’t just about selling products—it’s about creating a seamless shopping experience that keeps customers coming back.”
Ultimately, success in the marketplace model comes down to mutual benefit. Retailers gain access to a diverse product range without holding inventory, while brands retain control over their sales and customer relationships. By fostering open communication, aligning on strategy, and prioritising customer experience, both sides can create a partnership that drives long-term growth.