How to Balance DTC and Wholesale for Your Brand

About 10 years ago, we saw a trend emerge of wholesale brands experimenting with direct-to-consumer strategies. 

Today, the landscape has changed, with many DTC brands now dipping their toes into wholesale. We’ve recently seen giants like Nike that had moved away from wholesale re-enter the space. 

This shift makes it clear that brands should have a well-rounded approach that incorporates both channels.

To better understand how much focus your brand should place on DTC and wholesale you want to evaluate how much value each channel can bring to your business and how they can complement one another. 

Let’s take a look at how you can strike the right balance. 

3 Reasons Why You Need Both DTC and Wholesale for Your Brand

Legitimizing Your Product

A wholesale presence can add credibility to your brand. 

When your products are available in retail locations, customers have the opportunity to experience them in a tactile, immersive way. This exposure often leads to increased brand recognition and trust, encouraging customers to explore a wider range of your products. 

For instance, a shopper might initially purchase a specific item like a pair of shoes directly from your brand's website. Still, when they see the full range of your products in a store, they are more likely to try other items like shirts or pants.

Addressing Product Availability Issues

Wholesale and DTC complement each other by addressing potential availability gaps. 

If a customer visits a store and finds that the product isn't available in their preferred size or color, they can turn to your online store to find exactly what they need. This synergy enhances the customer experience, making your brand more accessible and reliable.

Increasing Average Order Value

Wholesale orders are typically larger than DTC orders. While a DTC order might consist of one or two items, wholesale orders often range from $1,000 to $10,000, with most averaging between $2,000 and $2,500. 

This scale not only boosts revenue but also provides a more sustainable sales model.

Strategies for a Strong Wholesale Presence

Be Intentional with Your Wholesale Partners

Choose wholesale partners that align with your brand values and vision. The right partners will not only help amplify your brand's reach but also work collaboratively to ensure mutual success.

Remember, while you need wholesalers to extend your market reach, they also need your products to diversify and attract customers.

Learn From Industry Examples

Consider the case of Nike, which scaled back its wholesale operations to focus more on DTC. 

However, this strategy proved insufficient on its own. 

Nike needed its wholesale presence to allow customers to experience its full product range in-store, from trying on different shoes to exploring apparel options like shorts and pants. 

This example highlights the importance of maintaining a balanced approach, as wholesale helps drive product expansion and brand recognition that may not be fully achievable through DTC alone.

To thrive in today's competitive market, brands must embrace a hybrid approach that leverages the strengths of both direct-to-consumer and wholesale channels. 

Wholesale offers legitimacy, broader product exposure, and the potential for higher order values, while DTC provides convenience and caters to individual customer needs. By strategically managing both channels, brands can create a cohesive and expansive market presence that fuels growth and enhances the consumer experience.