The economic recession has had a dismal effect on the US economy, including men's and boys' apparel wholesalers. With decreased discretionary spending in 2008 and 2009, retailers have been offering deep discounts to consumers in order to retain sales. Due to weak downstream demand, wholesalers were left with excess inventories, slashing their own prices to move stock. In their ongoing quest to cut expenditures and sustain margins, retailers have been sourcing directly from manufacturers, causing wholesalers to cut prices to remain relevant in the apparel supply chain. Meanwhile, imports have grown to represent 95% of domestic demand for upstream manufacturers. Because these foreign goods are made with cheap labor, retailers prefer these low-cost goods. As a result, wholesalers are left with lower demand.
Typical businesses in this industry purchase men's and boys' clothing from apparel manufacturers and sell these products to retailers, generally with minimum or no further product development. Most wholesalers in this industry undertake sales and administrative activities such as establishing relationships with manufacturers and retailers, marketing and advertising their products, and storing and transporting stock.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.