Wholesale-first

Wholesale-first is a business strategy or approach prioritizing the bulk sale and distribution of products or services to retailers or other intermediaries before directly catering to individual consumers. This contrasts with a direct-to-consumer (DTC) or retail-first model. A wholesale-first strategy focuses on volume, often accepting lower profit margins per unit to achieve larger overall revenues and build wider market penetration. The approach frequently involves partnerships with established distribution networks and can be particularly advantageous for manufacturers seeking to quickly scale production and reach geographically diverse markets.

Wholesale-first meaning with examples

• The new clothing brand adopted a wholesale-first strategy, initially supplying boutiques and department stores. This allowed them to establish brand awareness and secure large orders before considering online retail. Their initial focus on bulk orders helped manage production costs and distribution, preparing them to gradually engage with individual customers down the line, creating brand visibility.
• A tech company specializing in industrial sensors chose a wholesale-first distribution model, partnering with distributors specializing in serving manufacturing plants. This gave the company access to existing sales channels, expert knowledge of clients, and established client trust, which rapidly grew sales, even though their marketing was B2B focused.
• A craft brewery utilized a wholesale-first approach by supplying local bars, restaurants, and liquor stores before investing heavily in their own taproom. This distribution approach was less risky, it allowed the brewery to focus on product quality. The strategy helped the business build relationships in the community to facilitate customer growth.
• The software company adopted a wholesale-first approach by licensing its technology to other businesses rather than trying to market directly to end users. They sold the software to companies that needed customization on their end, building relationships and providing support, expanding their customer base efficiently without a huge marketing team.