Direct Reatil and on-line presence: brands look towards end customers

Business associated with Fashion is finding a new equilibrium, where intermediation weakens and the direct relationship with the consumer is strengthened

Wholesale or Direct Retail? A strategic choice that has been playing a major role for years in the Fashion world has recently found a much clearer response than usual. The latest global events have, in fact, pushed producers to favor direct relationships with customers.

Wholesale in re-dimensioning and a new relaunching

Fashion houses rush to clarify that the choice has been contemplated for some time and is not due to current events. Whether or not this version is accepted, the closing of structures and showrooms dedicated to wholesale is a fact relevant to this most recent period. Real estate with rental and maintenance costs is no longer considered strategic, especially if reserved to an industry which is worth only 20-25% of the total at this point for some and for which forecasts indicate an additional decline.

Nonetheless, let us hold off on declaring the end of multi-brand stores, quite the contrary. If for some brands this is no longer a decisive option, for others these stores continue to represent an essential showcase. It is not by chance, for example, that the recently announced initiative for the FuoriSalone della Moda will specifically utilize multi-brand stores in Milan. This is testament to a line of business destined to last still for quite some time.

The single brand triumphs in Italy and abroad

Nonetheless there is a counterbalance to wholesale in terms of growth, and it is Direct Retail. An overwhelming phenomenon, that in the last month alone has seen a significant increase in the inaugurating of single brand stores and corner areas, both in Italy and abroad. An expansion in grand style constituting a strong new beginning in activities and representing a decisive response to each lockdown, between optimism and the hope of returning to normality.

Germany, Spain, Russia, South Korea, USA, India… From North America to the Far East, passing through the Arab Emirates, Made in Italy and high fashion have by now conquered the malls and commercial areas of every corner of the world. In this new strategic focus of expansion, the direct control of stores seems to guarantee, everywhere, an increase in sales and growth in the value of the brands.

The latest trend for stores: the move to on-line

In our previous in-depth analysis we commented on the arrival of new online Luxury platforms. Most of the Fashion business are, in fact, targeting E-commerce. Restructuring plans for the store networks, to best adapt to new business needs, are becoming more and more frequent. Regarding physical stores, strategic boutiques are being opened with a concentration on specific offers; on the digital side, instead, standard and general activities, mainly, are moving towards online business. The omni-channel approach is basically always dominant.

Therefore, in such a dynamic period, leaning towards internationalization, where timeliness is essential, the flexibility of Bizeta solutions becomes an authentic added value. A partner who is also synonymous with operability and reliability all over the world, considering the numerous foreign tax systems made available by our Group.

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