We live in a world where fashion retail and wholesale thrive in a new digital playground. This week, we’re kicking off our weekly roundup with a focus on exactly that: how major brands and retailers are revamping their strategies to catch this wave. Then, from the seamless blend of online and in-person shopping experiences in supermarkets to millennials’ pivotal role in reshaping consumer trends globally, we’ve got the inside scoop on the changes that are making waves. Plus, we’ll explore the fallout from a major industrial distributor’s sudden shutdown and the multi-billion-dollar question of how AI could be the hero businesses didn’t know they needed. Buckle up for a ride through the latest in last mile delivery, retail, wholesale and beyond!
Fashion Goes Digital: The New Age of Wholesale
Fashion’s big shift is here: wholesale is making a comeback and going digital. With the direct-to-consumer (DTC) craze cooling down, big names like Nike and retailers like Target are revamping their wholesale game, as brands like Allbirds and Warby Parker see their once sky-high valuations take a nosedive, with some dropping by up to 90%.
Why Digital Is the New Wholesale King
The scene is changing. Digital-savvy sales reps and buyers are leading the charge. They’re ditching old-school trade shows for online platforms where business happens 24/7. Wholesale now makes up a whopping 60% of brands’ sales and it’s clear why: 75% of these brands have embraced B2B tech, powering up with digital showrooms and fast analytics to keep pace with today’s rapid retail cycles. This tech shift means businesses can avoid the pitfalls of outdated inventory management — like selling items they don’t have or running out of hot products.
Wholesale’s New Look: Borrowing from B2C
Today’s wholesale isn’t just about selling in bulk; it’s about creating an experience. With 44% of brands looking for new retail partners and 35% aiming to smooth out the buying process, the influence of B2C is unmistakable. Brands are spicing up their B2B operations with slick, consumer-like shopping features. Think digital catalogs that make ordering as easy as a few taps or clicks and customer service that keeps retailers returning. It’s a game-changer that offers a shopping experience that keeps relationships strong and orders flowing.
Millennials Lead the Charge in Spending: A Deep Dive into Their Shopping Habits
Millennials are not just spending — they’re spending big and outspending other generations by more than 30%. This scoop comes from a recent Global Voices survey by ESW, which stresses how these digital natives are reshaping shopping trends across the globe.
Shopping Without Borders
Millennials are the chameleons of the shopping world, seamlessly blending in-store browsing with online purchases. They’re making shopping an art form, mixing and matching how they shop to fit their busy, on-the-go lifestyles. With over 52% of all consumers now identified as omnichannel shoppers, millennials use every tool at their disposal. Whether tapping to buy on their phone, swinging by a store to pick up an online order or scoping out goods in person only to find better deals online, they’re all about intelligent, flexible shopping and unified commerce.
A Global Phenomenon
North American millennials make 43 online purchases annually and lead all global markets. But that doesn’t mean that they only want to shop online. The trend of omnichannel shopping is borderless and expanding. In fact, in countries such as the UAE, South Africa and India, approximately 65% of millennial shoppers embrace an integrated shopping style and mirror the habits we see here. So, wherever you are in the world, how does your business stack up and intend to cater to these shopping habits?
Supercharging Supermarket Sales: eGrowcery and CresLane’s New Tech Tie-Up
Retail is getting a high-tech makeover. eGrowcery and CresLane, two leaders in retail technology, have joined forces to transform how supermarkets blend online and in-store shopping to make the omnichannel customer experience smoother than ever.
A Boost for Brick-and-Mortar
This partnership intends to revolutionize the entire shopping experience. With eGrowcery’s prowess in e-commerce platforms and CresLane’s robust POS systems, supermarkets can now offer an easy transition between tapping around online and picking up in-store. Think of better pricing, smoother promotional management and flawless experiences for customers switching between digital browsing and aisle roaming. It’s a big win for operational efficiency and a bigger win for the customer experience.
Technology at the Checkout
Here’s where it gets really exciting. Combining tech, eGrowcery and CresLane are setting up supermarkets like Georgia’s 42-store chain Food Depot for success. The benefits could be manifold: faster service updates, pinpoint-accurate financial tracking and a user interface that’s a breeze to navigate. It’s a fascinating time as this partnership could completely reimagine supermarket efficiency and the shopping experience, both in-store and out.
What AgoNow’s Shutdown Means for the Supply Chain
Despite that excitement, the supply chain isn’t immune from sad, fearful moments and the abrupt shutdown of Tulsa-based wholesale industrial distributor AgoNow is precisely that. Many supply chains and businesses are on edge, as many have relied on its products since 2016 and suddenly have to find other wholesaling options.
The Immediate Fallout
AgoNow was more than a run-of-the-mill distributor. With over 150,000 SKUs and 130 supplier partnerships, its closure leaves a big hole in supply chains for industries like MRO, construction and safety products. For businesses that relied on AgoNow’s warehouse in Tulsa — stocking over 10,000 items — finding alternative suppliers is now an urgent task. It also points to the larger issue of single-sourcing supplies and the importance of a diversified network through suppliers or carriers.
The Bigger Picture: Adapt and Overcome
AgoNow’s end is a wake-up call for the industry. It’s a perfect moment for supply chain managers to reflect on their own vulnerabilities and opportunities. How diversified is your supplier base? Are you too reliant on a single link in your supply chain? On the flip side, for the agile competitors, there’s a gap in the market that is ripe for the taking. Strengthening partnerships and broadening supply sources could not only help cushion against similar shocks but also position businesses to capture new market share in the wake of AgoNow’s exit.
Overcoming Overstock: Why Embracing AI Could Save Billions
Got excess stock? You’re not alone. Recent data reveals that in 2023, businesses bled a staggering $562 billion due to overstocking and they’re on track to lose another $1.2 trillion from items they can’t keep on the shelves. However, in the thick of these inventory woes, AI can help your bottom line.
The Real Cost of Playing It Safe
When every penny counts, it hurts to see funds tied up in mountains of safety stock that might never see the light of day. It’s a common scene: warehouses bulging with products ‘just in case.’ At the same time, the money spent on them sits idle, unable to be used for anything else. This over-caution is eating into profits and blocking investments in areas that could help prevent these costly mistakes.
AI to the Rescue
Here’s the kicker: despite AI’s proven power to fine-tune stock levels to what you really need, it’s still not a go-to tool for everyone. About half of retail and less than half of logistics leaders use AI and trail behind the global average despite the benefits: predicting product demand with scary accuracy and adjusting stock levels on the fly. Many are dragging their feet, intimidated by the task of integrating AI into their day-to-day operations beyond simply last mile logistics. But for those who take the plunge, the payoff is enormous — imagine freeing up over $100 billion globally by just getting inventory right.
Wrapping It Up with OneRail
This week’s events show how much innovation drives today’s business world. So, if you’re looking to stay ahead, OneRail’s got your back with services designed to streamline and secure your logistics:
- Unparalleled Courier Network: Place your deliveries in trusted hands by tapping into OneRail’s massive national network, boasting over 12 million vetted drivers.
- OmniPoint® Platform: Leverage OneRail’s OmniPoint® Platform for automated rate shopping, smart matching and real-time visibility to guarantee timely and cost-effective deliveries.
- Exceptions Assist™: Benefit from proactive monitoring, with a dedicated team of logistics experts at the ready 24/7 to tackle any challenges and disruptions, safeguarding your on-time delivery rate.
No matter your industry, OneRail can transform your logistics strategy. Schedule a demo today to find out how.
