Week 1 Flashcards
Who is a wholesaler?
the middleman between the manufacturer and the retailer
Define Vertical Operations?
strategy that allows a company to streamline its operations by taking direct ownership of various stages of its production process rather than relying on external contractors or suppliers. Design. Make. Ship. Sell.
Example: Zara / H&M / Banana Republic
What is the production process?
manufacture/ distributor + Wholesaler = Retailer
what are the Two Types of wholesalers? Explain them
In-House Rep: A person who works for one company or manufacturer, maybe on salary and commission
Agent: A person who represents a manufacturer or importer
Explain characteristics of this type of wholesaler: In-House Rep.
- Can only sell their own brands
- Entry point
- 9-5 work hrs
- Consumer-based approach
- Work with more established brands
- Stable and structured position
- Employee under an established company
- Agency / Showroom
Explain characteristics of this type of wholesaler: Agent.
- Sells multiple brands
- Works with several - distributors and manufacturers
- Grows and takes on any brand that fits your brand portfolio
- Consumer-based approach
- Often works with new brands ( risk )
- More qualified and risks
- Independent/freelance / Employee
- Agency/showroom
Explain a territory in wholesaling.
A geographical region that is assigned to the agent to represent the line. Western Canada - BC, Alberta, Sask, Manitoba and Yukon.
What are the 3 territories in Canada?
Western - Vancouver
Eastern - Toronto
Quebec - Montreal
Define a fashion line
Collection of styles offered for sale by one company
Fall/winter/ spring /summer
- Seasonal product
- Fall / Spring top of the fashion calendar / seasonal change
- Meeting minimum 4 times per year with buyers
Explain a sample
An example of each garment being offered for sale
Where are 4 wholesaling locations in Vancouver?
- Fashion Exchange/ Gift Exchange ( FX + GX ) 1951 Glen Drive
- Appointment only
- Non-branded items / pre-packs
- Cash and Carry - Yaletown
- Showrooms
- Decrease because of an increase in rent - East Van
- Parker Building - Gastown
- Beautiful buildings
Explain Cash and Carry. Please include an example.
a self-service wholesale outlet where customers pay for their goods (Cash) and take those goods with them (Carry).
example: Truck wholesalers or jobbers sell and deliver directly from their vehicles, often for cash.
Explain a Showroom
A place to display samples, maybe an office or hotel room
Explain Road-trips in Wholesaling?
The agent takes samples to different cities/towns to attend a tradeshow, market or the store itself.
- Critical to an agency’s success
List 4 reasons why road trips are critical to a wholesaler’s success.
- Get to visit retail stores we dont often see
- Merchandise display
- Demographics
- Popularity
- Competition - Buyers/Owners Appreciate the visit
- Builds on relationship
- Story representation - Orders are larger
- Better representations of product
- The more product in store the more sold - Travel lets us explore other areas
- Find new stores
- Boutique business
