How Emerging Brands Can Navigate the Wholesale World Successfully

For many young fashion brands, success begins with direct-to-consumer (DTC) sales. Selling directly allows designers to control their brand image while building strong customer relationships. But as they grow, wholesale partnerships become key to expanding reach. The challenge is to enter the wholesale market without compromising financial stability or brand identity. Here’s how emerging brands can approach wholesale strategically while maintaining control over their growth.

From DTC to Wholesale: Finding the Right Balance

Traditionally, fashion brands relied on wholesale to reach consumers, with large retailers determining what products made it to stores. The rise of online platforms such as Shopify and Instagram has shifted this dynamic, giving brands more control over sales and marketing. Many designers now establish a strong DTC presence first before venturing into wholesale.

Ginny Seymour, CEO of Aligne, initially reduced her brand’s U.K. wholesale presence to focus on DTC, which resulted in a significant increase in sales. However, wholesale still plays a role, accounting for about 20% of Aligne’s business. This balanced approach allows the brand to retain its identity while benefiting from wholesale growth.

Preparing for Wholesale Success

Brands need to ensure they are ready for wholesale before expanding. Testing products and pricing through DTC channels first can refine strategies, making wholesale expansion smoother.

Mina Alyeshmerni, founder of Brooklyn boutique Maimoun, believes that selling directly to consumers first allows brands to test their products before approaching retailers. Similarly, Bernard James, former wholesale director at Lanvin and founder of his own jewelry brand, emphasizes the importance of planning, keeping wholesale at just 15% of his business.

Emerging designers also benefit from leveraging industry networks. Tina Lucasheva, a footwear designer, started with two showrooms before earning a spot with Moda Operandi. This experience demonstrated how showroom representation can open doors. Meanwhile, Marco Lebel, founder of Theo the Label, adjusted his product focus based on wholesale buyer feedback, proving that retailer insights can help refine a brand’s appeal.

Choosing the Right Retail Partners

One of the biggest challenges in wholesale is selecting the right retailers. Large stores can delay payments or reduce order sizes, straining small brands. In some cases, independent boutiques generate more revenue than well-known department stores. For instance, Lucasheva discovered that a small boutique in Eastern Europe provided better sales performance than bigger retailers.

Brands also need to decide between handling sales in-house or using showrooms. While showrooms can provide access to key buyers and stylists, they may struggle to secure high-quality clients, leaving some brands lost among competing collections. Sara Ouadnouni, founder of Belier Consulting, advises brands to seek showrooms where buyers already trust the sales agents. Established relationships between sales teams and buyers often lead to stronger wholesale opportunities.

Another option is a hybrid approach. Aligne plans to hire an in-house expert for the U.S. while partnering with a sales agency for Australia. This strategy enables flexibility while maintaining control over wholesale growth.

Sustaining Success in the Wholesale Market

Wholesale can be profitable, but brands must take steps to protect their financial health. Diversifying retail partnerships prevents over-reliance on a single store while negotiating favorable payment terms reduces financial risk.

Bernard James, whose jewelry is stocked by Dover Street Market, Ssense, and Saks Fifth Avenue, highlights the importance of working with retailers that support brand marketing. Whether through pop-ups, fashion events, or strong visual merchandising, these efforts enhance a brand’s visibility and sales.

For emerging fashion brands, expanding into wholesale is about more than just getting stocked. The focus should be on building long-term retail relationships that align with the brand’s vision. By balancing a solid foundation in DTC sales with a selective wholesale approach, brands can scale effectively while maintaining financial stability and creative integrity.