A recent report from business-to-business marketplace platform NuOrder by Lightspeed surveyed 65 brands and retail professionals about wholesale trends for the coming year.
Retailers and brands have identified e-commerce, sustainability, artificial intelligence and emerging technologies, personalization, data and analytics, and inventory management as the top trends that will shape the industry over the next five years.
Not surprisingly, AI and emerging technologies will disrupt every aspect of the industry, requiring us to adapt now more than ever, the report authors note. Companies are expected to focus on digital-first practices to determine their strategies. 77% of surveyed professionals said that digitalization would have a “very” or “very” impact on changes in the wholesale industry.
Key challenges that brands and retailers are expected to face include rising costs of doing business, supply chain disruptions, labor shortages, inventory management, artificial intelligence, emerging technologies, data and analytics, and more.
In particular, both retailers and brands are seeking greater data fluency throughout distribution and sales. Going forward, brand-retailer relationships will transform the wholesale ecosystem through data sharing and collaboration, private label growth, sustainability and ethical practices, flexible contract terms, and seamless technology integration.
Amid such rapid change and innovation, companies are investing in training, phasing in, partnering and collaborating with technology experts, and prioritizing cybersecurity to ensure employee comfort. , trying to adapt by staying up to date with the latest tools and trends, understanding customer needs, and more. central approach etc.
More than 90% of survey respondents said strong collaboration and communication efforts with wholesaler partners are important to business success. Most brands and retailers take an approach that includes developing common goals, collaborative problem solving, training and workshops, regular check-ins, transparent decision-making, and maintaining open communication channels. Stated.
As brands and retailers understand their product lifecycles and customer journeys as essential practices, they can make more informed decisions about products and distribution, access to data, and sustainable and ethical practices. You can now do this. Metrics used to track wholesale business success include sell-through, gross margin, order frequency, reorder rate, average order value, and total sales.
Sustainability remains a top priority among wholesalers. The report's authors note that experts are stepping up strategies to adapt more sustainable and ethical values.
Wholesalers conduct product life cycle analysis, invest in sustainable education and training initiatives to ensure alignment across the company, collaborate with NGOs and other organizations, and promote environmental awareness. Engaging with consumers to seek organic, fair trade, or Rainforest Alliance certification and gathering feedback from stakeholders and stakeholders. Communicate to consumers about a company's efforts to improve its environmental footprint.
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