Back to overview
Share this post:

Fashion has been embracing new technology at an exhilarating pace, especially for wholesale. Digital Showrooms are now a thing. Remote sales meetings are business as usual. Even 3D samples aren’t a crazy thought. So many new technologies, but can you implement them all at once? If not, what to prioritize then? Should you start with 3D? Or should you invest in a B2B webshop first? Is it clear why you need a Digital Showroom?  To answer this question with confidence, follow these 4 steps and uncover what your fashion brand really needs for its wholesale sales. 

Step #1: Outline your wholesale revenue split

Understanding your sales channel split is the first step. You may want to invest in your direct-to-consumer channel, but you may actually need to invest in wholesale first. In order to prioritize, categorize each sales channel by gross revenue. This will give you an idea of how each channel is contributing to your revenue and make sure you don’t overlook your cash cow entirely. 

You need a digital showroom if...most of your wholesale revenue comes from a small number of customers (the 80/20 rule).

Step #2: Identify your wholesale revenue growth rate 

This is important as it will highlight the current opportunities within your wholesale channel. To do this effectively, segment results by sales organization (city, country and region), customer segment (good, better, best) and customer size (small, medium, large). 

You need a digital showroom if... large/medium and better/best customers are where you see your biggest opportunities. 

Step #3: List your wholesale growth opportunities

From the opportunities outlined in step 2, define which ones can drive growth in wholesale. These opportunities should roll up to your wholesale strategy (if not, you should incorporate them). Your digital investment must align with these opportunities. This is a key step to measure what value there is for your brand in a digital investment like a Digital Showroom. 

You need a digital showroom if...If you want to grow your wholesale business by increasing revenue from existing customers and/or acquiring customers in new segments/markets.

Bonus: what's the best digital solution for...?

These are some common strategies for growth and the best digital selling tool per strategy for wholesale:

Strategy Digital Showroom Virtual Showroom B2B Webshop
Increase Existing Revenue (existing customers) Best Better Good
Increase New Revenue (new customers) Better  Best Good
Horizontal Expansion (new customers, same segment) Better Best Good
Vertical Expansion (new customers, different segment) Best Better Good

Step #4: List your wholesale optimization opportunities 

Your revenue growth rate also highlights optimization opportunities. Optimization can be a huge growth driver for some brands, especially those with a more mature wholesale model. These brands can drive growth by increasing the margin they get from the revenue they generate. Your digital investment must increase efficiencies

You need a digital showroom if...  your wholesale growth has reached maturity and you’re looking to reduce the cost to serve your customers. Digital Showrooms are powerful tools to reduce the costs to serve customers in 3 ways: 

  1. Improved time to market by reducing preparation, in-appointment, and sales window time
  2. Reduce operational costs by minimizing travel and optimizing sample production.
  3. Drive efficiency by increasing the alignment of orders between customers per segment.

So, Does your brand need a Digital Showroom?  

Digital Showrooms are one of the many B2B tools available for fashion brands. Investing in a digital solution like a Digital Showroom feels like a no-brainer. To make the most of a Digital Showroom you first need to know why you need a digital showroom. Not enough due diligence on your part can lead to unnecessary frustration and friction within your business.

4 reasons why you need a Digital Showroom

Fashion is embracing new digital solutions at an unprecedented rate. We have more solutions available than ever before. Long gone are the days where Excel and Powerpoint run the industry. But digital by itself can’t transform the fashion industry. Brands need to take an active role in understanding digital and the value they want to unlock and how to use digital to unlock it. Without value, digital investments are just that, investments. And who wants to invest without getting anything in return?