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A few years ago, direct-to-consumer brands seemed to threaten not just retail but also wholesale. “Cutting out the middleman” was supposed to be highly lucrative, boosting brand loyalty and margins. Venture capitalists poured money into brands like Casper, Away and Allbirds.
It turns out, though, that scale, profitability and healthy margins are often not possible without wholesale in the mix.
Still, wholesale isn’t for everyone, and even when it’s the right play, there is an art and skill to it. Liza Amlani and her business partner, Raj Dhiman – who co-founded Retail Strategy Group – recently published “The Whole Sale -Profitable Wholesale Strategies for Brands,” to break down the how and why of this important channel, including vignettes of Amlani’s work with brands like Ralph Lauren. Amlani joined the pod to talk about how to think about wholesale in the post-DTC era.
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Editor’s note: This episode was produced and edited by Caroline Jansen.