Whether it is handbags or iPhones, watches or belts, everyone loves to accessories – and retailers have jumped on this trend to grow their profits and increase their stocks. The wholesale accessories market has had to respond quickly and efficiently to keep up, but what has driven the increase in demand and how have wholesalers been able keep profits up while catering to a more and more diverse market? This article looks at a few of the explanations.
The globalization of the world’s markets means that wholesalers no longer cater to just one geographical area. A wholesaler in China can easily contact and sell goods to the US, as they can to their local market. For wholesalers, this has been beneficial in that they have more options but it means they must be able to grow to meet a potentially unlimited demand.
In previous decades, young people would choose their clique and live by its defined rules, rarely changing how they dress. That’s no longer the case. The internet means that young people want to change their look daily. Retailers have been able to capitalize on this, but for wholesale accessories providers it means they need to create new ranges often, increasing the level of competitiveness in the market.
A wholesaler now has to consider not just bags and scarves when designing accessories for retailers, but also phone covers, laptop cases, piercings and much more. Wholesalers can either specialize, in say laptop bags, but risk that product becoming irrelevant, or they can try and produce lots of items. Either way, it is a tough ask for wholesale accessories providers.
Technology for production
Thankfully, all this demand can be met with the help of technology. However, as it has helped wholesalers increase production it has also made the market more competitive.
Technology has made it relatively easy for new wholesale produces to start up. This has been good for the market as it allows those with new designs and ideas to compete with the bigger companies. However, it has also made retailers less loyal when selecting a wholesaler as they know it will be easy for a competitor to fulfill their orders if costs increase.
Wholesalers are no longer faced with high shipping and production costs. Technology means they can produce more items at a faster rate without the need to pay as many staff. This has increased their profits and made the market more attractive to new companies, again increasing competitiveness.
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