In the dynamic landscape of wholesale, staying ahead means understanding the trends shaping the industry. We believe data-driven insight is the key to success. That's why we've compiled a comprehensive report on the top 10 industry trends to guide your business strategy in 2024. We surveyed 65 leading brands and retailers to uncover the core challenges, innovations, and strategies defining the wholesale landscape in 2024. From embracing emerging technologies to fostering sustainable practices, these trends are essential for navigating the ever-evolving wholesale ecosystem. Read this blog as we explore a few key learnings you'll uncover more deeply in the report.
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Techquake: Shifting Tides in Wholesale with AI Innovation
Today, with the emergence of AI and tech solutions, there is a stronger interest in making data-driven decisions, leading businesses to invest in these tools to improve operations overall. In fact, according to a McKinsey analysis report, in the next three to five years, generative AI could add up to $275 billion to the operating profits of the apparel, fashion, and luxury sectors. Wholesale stakeholders note these operative shifts, with 77% of respondents to our survey saying they believe digitization is reshaping wholesale.
The Role of Data Fluency in Reshaping Brand-Retailer Dynamics
With the increasing recognition of the transformative power of AI and digital solutions, wholesale stakeholders are acknowledging the imperative to aim for data fluency: ease and proficiency in sharing and analyzing data across distribution and sales to enhance data-driven decision-making. However, historically, data sharing has not always been a readily accessible process. According to Forbes, a culture of competition and a lack of access to data-sharing tools kept brands and retailers from exchanging critical data, leaving profit opportunities on the table. A recent Coresight Research survey shows us the negative impact of stale data for brands and retailers:
- 80% of retailers in the US and Canada lose at least 3% of revenues annually due to allocation issues
- 23% report that more than 6% of sales are lost.
- 73% of retailers have excess inventory of more than 5% of total inventory after a selling period
Considering this, the tune is changing as companies learn that data sharing promotes optimal business decision-making for manufacturing, inventory, supply chain, and so much more. Brands and retailers are increasingly noting collaboration as a vital tool in their business efforts. In our report, 92% report strong collaboration and communication in wholesale partnerships as extremely important to the success of their business. Effectively leveraging data sharing, brands and retailers will continue to build strong relationships with:
- Regular check-ins and reviews: routine meetings to plan for the future
- Joint problem-solving: addressing and solving issues together
- Open communication channels: ensuring open lines for feedback, concerns, and updates
- Training and workshops: organizing joint training sessions to understand each other's processes, tools, and expectations
Interested in learning more about how brands and retailers will create solutions together?
Download the report for a complete look into the game-changing strategies for better collective business results.
Brands and Retailers Embrace Seamless Integration for Digital Success
As companies increasingly recognize the value of data sharing and collaboration, this underscores the necessity for brands and retailers to invest in technology partners adept at integrating diverse digital tools seamlessly. Effective collaboration will involve the integration of eCommerce platforms, point-of-sale systems, and augmented reality tools.
Wrap Up
Looking ahead to 2024, one thing is clear: adaptation is critical to success in the wholesale industry. By embracing emerging trends, fostering collaboration, and prioritizing seamless tech integrations, businesses can position themselves for growth in an ever-changing market. With NuORDER by Lightspeed, you have the tools and insights you need to thrive in the year ahead. Download our trends report today and stay ahead of the curve.
