Media, luxury and education
Wholesale (fashion and luxury)
Selling goods to other retailers, such as department stores, which resell them.
Facts checked against sources onWhat does Wholesale (fashion and luxury) mean?
In fashion and luxury, the wholesale channel means selling to department stores, multi-brand boutiques and online retailers, which then sell to shoppers. The brand sells at a wholesale price, often about half the retail price, so it earns less per item but avoids store costs and reaches more places. Example: a jacket retails at 800; the brand sells it wholesale for about 400 and the retailer keeps the rest to cover its costs and profit. Many luxury brands have cut wholesale in favor of their own stores for tighter control of pricing and discounting, while many mid-market brands still rely on it heavily.
Where does it come up in case interview prep?
- Channel economics across industries: direct, retail, marketplaces, distributors and sales teamsLesson in Customers and growth: the economics of marketing
- How luxury and fashion make moneyLesson in Luxury and fashion
- Luxury and fashion economics: channels, markdowns, and currencyLesson in Luxury and fashion
- How the beauty and personal care industry worksLesson in Beauty and personal care: cosmetics, skincare, haircare and fragrance
Related terms
- Directly operated store (DOS)A store the brand owns and runs itself, rather than selling through another retailer.
- MarkupHow much you add on top of cost to set the price.
- Sell-through rateThe share of stock received that has been sold within a period.
- MarkdownA lasting price cut to clear stock that is not selling.
- SVOD and AVODStreaming paid for by subscription (SVOD) versus paid for by advertising (AVOD).
- Fill rate (advertising)The share of available ad slots that are actually sold and shown.
- Content amortizationSpreading the cost of films and shows as an expense over the years they are expected to earn.
- ARPPU (average revenue per paying user)Revenue divided by only the users who pay, not all users.
Learn it in context
See Wholesale (fashion and luxury) at work in a lesson from Customers and growth: the economics of marketing, with checks as you go.
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