Wholesale concept has developed considerably until 1930, when fairs appeared. Types of wholesale are: wholesale trade intermediaries, brokers and agents, branches and representative offices of manufacturers and retailers. Wholesale is the purchase of products and services and their further sale to organizations as customers, retailers or other wholesalers, but without sign-if can’t volume of sales to final consumers.
Wholesale undertakes a number of vital functions in the distribution channel, particularly in the process of sorting products Industrial, commercial organizations and government institutions are the leading consumers of wholesalers, followed by retailers. Mutual sale between wholesalers is an important part of wholesale activities.
Wholesalers do business with organizations as customers. They pay less attention to promotion, atmosphere and location. Wholesale transactions are usually higher than retail. It is also important to mention that government acts differently when it comes to relations with wholesalers and retailers in terms of legislation and taxation.
Wholesalers are hired when they are efficient in the execution of one or more the following functions: sales and promotions, buying and forming of assortment, the distribution of large quantities, storage, transportation, providing information on market…In recent years wholesalers are faced with growing pressure from foreign sources of new competition, demanding customers, new technologies and programs. Like in wholesale of women’s coats, they had to develop appropriate strategic responses and, accordingly, to improve their strategic decisions.
In wholesale of coats, like every other wholesale, target markets should be defined .Target group of consumers can be chosen based on size, types of consumers and need for service. Product of wholesaler is their assortment. Key is to find the mix of services that consumer’s value and appreciate the most. Wholesalers usually increase the cost of products to a common assessment. They primarily rely on its sales force to achieve goals of promotion.
Trying to cope with today’s high-end market, which is often volatile, the owners of these wholesalers have had to reduce their operational costs by investing in advanced technology for materials handling and information technology. This also applies to the coat market, where in modern equipped spaces the most favorable models can be bought in wholesalers, which can later be distributed in local boutiques.
Despite tough times for each type of business, today is the need for wholesale still very strong, especially when it comes to food products and textile products. Although there is a possibility of direct exchanges between producers and retail trade, wholesale trade companies are reliable link between retailers with the offer of those manufacturers, whose products are made customized for buyers.