Supply Chain Council of European Union | Scceu.org
Distribution

One Topic – Two Opinions: Wholesale Remains Irreplaceable

A differentiated view is also worthwhile for D2C (direct-to-consumer) business. Studies have shown that many brands have to struggle with the necessary brand strength in the long term. 74 percent of all brands worldwide are irrelevant to the consumer – therefore, even a sustainable D2C business as a stand-alone seems challenging. Therefore, the effect of D2C stores is only valid for a few brands and categories, but in this area it is even more so.
In the running, winter, and outdoor segment, for example, the wholesale business is less influenced by the D2C business because there is “healthy competition”. Here, too, we can see that retailers who focus on their category winners continue to do very good business.
This is also due to the fact that, unlike the D2C business, they cover the entire category and can offer brand-independent advisory expertise in all product groups. However, wholesalers must not disappoint their consumers, otherwise they will migrate much faster today. Customer loyalty has a much shorter half-life than in the past, especially when disappointments occur.

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