Joor, the B2B technology partner solution for wholesale and retail, has released its annual trends report predicting the key trends that will shape the global wholesale market scene in 2023.
The specialist has a privilege observatory on the market as it counts on nearly US$20 billion worth of wholesale transactions processed annually, and operates with more than 13,900 brands, including Valentino, Stella McCartney and Saint Laurent, and others from groups like LVMH, Richemont and Capri Holdings, along with retail partners such as Harrods, Neiman Marcus, Harvey Nichols, Printemps, Bergdorf Goodman and Dover Street Market, among 400,000 curated fashion retailers in 150 countries connected daily through its platform.
According to the technology specialist, in 2023, among other trends, the market will experience a resurgence of wholesale, and it will be increasingly more focused on flexible order seasons.
Wholesale is king
In 2022 more and more Direct-to-Consumer (DTC) companies have started opting for wholesale to cushion the impact of rising inflation and increasing customer acquisition costs. The year 2023 will see the continuation of this trend and migration to a diversified distribution strategy, leading to the general conclusion that the DTC-only distribution strategy is dead and wholesale will be back.
According to the survey, brands are recognizing the benefits of wholesale to profitably grow their business and client base, as well as the limitations of an exclusively DTC strategy.
In 2022 some of the brands that were famous for their DTC approach, like Glossier and Allbirds, have started embracing wholesale, citing the need to develop a more expansive omnichannel strategy.
Joey Zwillinger, Allbirds’ co-founder and co-CEO, said: “We view third-party retail as a highly effective way to build awareness and drive credibility, while accelerating top and bottom line growth.”
Similarly, luxury brands are also reaping the benefits of the wholesale boom. In the first half of 2022 alone, Joor client Lanvin reported 117% global sales growth, with wholesale up 260%.
Seasons are flexible
Another trend that is becoming increasingly important is the flexibility of market seasons. The once rigid schedule in which brands and retailers processed their orders within a tightly defined market week has now become a much more dynamic and flexible process.
Joor's fall 2022 market survey illustrated that retailers are changing both how and when they buy, with 53% of wholesale buyers extending their buying window later into the season. This shift is most pronounced in North America, where 55% of buyers are planning to buy later—however, this is a growing trend across EMEA and APAC as well.
Brands are responding accordingly, with 39% of Joor brands lengthening their selling window to accept orders closer to delivery, an increase from 33% last year.
In addition to selling new collections, brands are increasingly offering evergreen, seasonless collections and showcasing their current inventory while planning for the future. By digitizing the wholesale buying and selling process, brands and buyers are able to both maximize future sales and move more inventory in real time.