What: A contribution on the reasons why wholesale is crucial in the brand ecosystem, especially for smaller ones.

Why it is important: It is cyclical: every two years analysts predict the death of wholesale based on the fact that one of the top 10 luxury brand decides to reduce its wholesale presence, only to then realize that the wholesale apocalypse will not take place and wholesale operators, among which department stores, remain central in the business model.

When large brands have the privilege to open dedicated boutiques to display their universe, digital brands and smaller ones have in common the fact that they might lack the needed resources to do so. This is the reason why partners are key to give them a substantial physical presence.

Department stores, among others, help champion small and local brands by giving them a visible presence. Similarly, wholesale digital platforms are key to provide them the online visibility that might be otherwise out of reach, for lack of investment capabilities.

Why wholesale is critical to small brands