Competition in this industry has always been cut-throat, but has now reached towering dimensions. Retailers are moving into areas where either wholesale distributor has traditionally ruled, or the market was simply left open. The expansion of retail discount stores, in which the companies supply themselves, such as the Cold Water Creek outlet stores, cuts a major inroad into their territory. This presents a serious challenge, forcing wholesale distributors to realign their marketing strategies to include such markets as city, county, state and federal governments.

As if that weren’t bad enough, while retailers are coming in the front door, logistics companies are stealing in through the back. That’s a development that might be of particular concern, as companies such as UPS are aiming to dominate the market segments with large SKU bases, but with no need for post-service delivery, such as in the automotive aftermarket. The solution according to Adam Fein, author of the NAW report, is for wholesale distributors to pinpoint key differentials between themselves and their competitors and incorporate those advantages into their key strategies. For instance, wholesale distributors have the edge over logistics companies in post sale service and similar advantages will be true of most other companies, as can be discovered with in-depth, detailed analysis.

Smart Wholesale Distributors Changing With The Times