Sourcing Wholesale Clothing VS. Private Labelling: Strengths and Weaknesses

Last updated on October 18th, 2022 at 05:40 am

With the growth of the e-commerce fashion industry, it has become difficult for retailers, mainly, to figure out a suitable way to source clothing. Whether a retailer sources Wholesale Clothing or partial clothing, he needs to deal with quality and affordability factors.  

Are you trying to source wholesale clothing? Do you have a private labelling source for your retail clothing business? 

It does not matter whether you are sourcing wholesale clothing or have private labelling, you need to consider the strengths and weaknesses of both. 

Therefore, this post will help retailers to better understand both wholesale clothing sources and private labelling so that they can decide one over the other. 

Sourcing Wholesale Clothing  

When a retailer approaches a wholesaler to buy in bulk then it is called sourcing wholesale. In simple words, it would not be wrong to claim that sourcing wholesale clothing is a way of buying only from wholesalers, as a source. 

For example, if a retailer is looking for Wholesale Women’s Tops, then the retailer should consider wholesalers who are manufacturing women’s tops. In doing so, the final wholesaler selected by the retailer becomes the source. 

In this regard, the major strengths of sourcing wholesale clothing are discussed below;

Strengths

• The first main strength of sourcing wholesale clothing is that it cost far less to buy one unit and, thus, is cost-effective. 
• The second strength of sourcing clothes wholesale UK is that retailers can source bulk orders to fulfil retail business needs. 
• The third strength of sourcing wholesale clothing is that it offers a variety of products at one time and this also strengthens retail business demands. 
• The fourth strength of sourcing wholesale clothing is that it is the swiftest choice in terms of receiving wholesale clothing in-hand. 

Weaknesses

• The first major weakness of sourcing wholesale clothing for the retailer is that it demands heavy investment especially when retailers buy initially. 
• The second weakness of sourcing wholesale clothing is linked with unsold inventory because your wholesale purchase always remains high more than what you sell. 
• The third overwhelming weakness of sourcing wholesale clothing is that there is no way to return unsold items regardless of the additional charges wholesalers demand. 
• Another weakness of sourcing wholesale clothing is that you can lose the market competition, mainly when there are the same products available in the market at a competitive price.
• When a retailer sources cheap clothes wholesale UK, then it becomes difficult for the retailer to decide to select particular from multiple ranges of cheap clothing items.

Sourcing Private Labelling

Sourcing private labelling is a way of collaborating with a manufacturer instead of other mediators like a wholesaler. However, the manufacturer offers you actual clothing and you just have to label each clothing item to make it your unique brand item, in the end. 

For example, if a retailer is looking for wholesale clothing UK for sourcing private labelling for each item purchased, then the retailer should place UK brand labels on each unit purchased.  

Also, retailers can establish brand identity through sourcing private labelling in the market, useful to grow the retail business. In this respect, some of the major strengths and weaknesses of sourcing private labelling for wholesale clothing are listed and discussed below;

Strengths

• Sourcing private labelling makes your products unique in the market, as consumers cannot find the same brand labelling not even through wholesale shopping they do online and offline. 
• Another strength of sourcing private labelling is that it brings loyal customers just because you have a different brand identity and, thus, a positive consumer response.
• You can source private labelling as low as you want as there are many manufacturers who are more likely to offer open minimum orders such as 50 units. 
• Another strength of sourcing private labelling is that you can easily promote first-class brands for selected consumers who do not buy wholesale clothing from anywhere. 
• It gives you complete control over your products especially in terms of quality

Weaknesses

• Sourcing private labelling needs unique products and, therefore, requires unique designs and other aspects needed for selling products in the market.
• The cost per unit in sourcing private labelling is more than sourcing wholesale units.
• It requires effective and useful marketing techniques for brand promotion and, thus, cost extra to your retail business. 
• Last but not least, paying tax as a sole proprietor is also a weakness of sourcing private labelling and you have to pay a large amount to run your business legally. 

Concluding Remarks

Whether you adopt wholesale clothing or private labelling, the most important thing is to know your goal and working potential involving your budget, location, consumer market, brand selection, business agenda etc. 

Therefore, whether you buy Wholesale Dresses or own a private label, you should be able to understand your position, especially as a retailer. Also, you should be able to understand the changing fashion industry in order to be updated and competitive, as a result.