Joor predicts that wholesale will continue to thrive in 2024

Digital wholesale platform Joor predicts that wholesale will continue to thrive next year as brands shift away from direct-to-consumer while adding that retailers will be buying conservatively.

In its end-of-year report for 2023, Joor said that despite the challenging environment, brands on its platform are experiencing growth, with 67 percent reporting sales volumes equal to or greater than last year.

Wholesale was particularly strong, with 74 percent adding that wholesale drove over half of their sales and that, on average, brands are expecting 27 percent growth in their wholesale business. Joor adds that this is causing brands to invest in wholesale over their direct-to-consumer retail stores and e-commerce channels.

“2024 is set to be a very busy and exciting year for fashion wholesale,” said Kristin Savilia, chief executive of Joor in a statement. “Wholesale is growing, as priority shifts away from DTC, and brands are embracing the channel’s enduring value and stability. Technological advancements in AI and integrated systems represent enormous potential to drive growth.”

2024 wholesale trends from Joor

Direct-to-consumer “falls out of favour”

Joor notes that brands will continue to shift away from direct-to-consumer in 2024 as they focus on and recognise the importance of their wholesale channel. 33 percent of brands have noted a shift from direct-to-consumer towards wholesale, with wholesale actively growing as a percentage of their total business.

Retailers are increasingly risk-averse

In 2024, brands should prepare for retailers to buy conservatively, predicts Joor, as they are becoming increasingly risk-averse due to the current macroeconomic environment. The wholesale platform notes that the volume of reorders – purchases of tested and proven styles - has almost doubled over the last four years, with reorders now accounting for 34 percent of total orders.

This trend is even more apparent in department stores where nearly half of all orders are reorders, compared to 30 percent for small, medium businesses who may be “more willing to buy new fashion that has not been tested”.

Investment in creative assets drives performance

Brands need to look at creating high-quality creative assets to drive sales. Joor transaction data reveals that styles with video experience double the conversion of styles over those without and that products with more than three images experience 63 percent higher average quantities purchased than products featuring three or less images.

AI is the future

Joor foresees accelerated AI impact on the fashion industry and is calling on brands to be ready to build on the current momentum. Expect AI to be used for everything from enhancing customer support to superior chatbots to automating content creation for sales, marketing, advertising, and optimising inventory distribution. “AI has the potential to reshape industry operations,” adds Joor.

Integrated technology yields maximum benefits

During the pandemic, brands shifted towards digital adoption. In 2024, Joor states that the next step is integration - connecting various digital systems so they can speak to each other to maximise the benefits of digitalisation. In 2024, Joor predicts that brands and retailers will face a shift towards integrating their disparate digital systems to create a cohesive and efficient operational framework. This integration will facilitate smoother data flow and communication, while laying the groundwork “for enhanced decision-making and performance”.