Press Release

GOS-205: WHOLESALERS – A GLOBAL OUTLOOK

February 13, 2012 – Fading Impact of Recession Surges Growth in the Global Wholesalers Industry, According to a New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global outlook on the Wholesalers Industry. The industry’s dynamics are intricately linked with macro-economic factors, and closely follow the boom-trough cycles of the overall economy. The increasing integration of retailing and manufacturing with wholesaling functions continues to alter the structure of the wholesale industry.

The wholesale distribution industry serves as a channel between manufacturers and retailers. Wholesalers are responsible for efficiently sourcing and supplying the goods to markets, and enhancing the efficiency of merchandise distribution process. Almost all goods sold in the developed countries and most part of developing countries, pass through more than one wholesaler. The industry deals with all types of goods, such as forest products, minerals, packed food, electronics, petroleum products, and automobiles. The products are obtained from agriculturists, other wholesalers, mining operations, and manufacturers. The factors that lead to the efficiency include links with producers, economies of scale, and the capability of a company to provide products of best quality, service, and convenience, and at best prices.

Merchant wholesalers are the dominant type of wholesale firms, and form the primary distribution channel for virtually all products, except for motor vehicles and related parts. Unlike brokers and agents, merchant wholesalers take ownership of products before distributing. Some of the prominent subcategories of merchant wholesalers include importers; exporters; drop shippers; voluntary group wholesalers; cash-and-carry wholesalers; truck distributors; industrial distributors; retailer cooperative warehouses; co-operative buying associations; farm products marketing cooperatives; assemblers; terminal elevators; and buyers. The wholesale agents and brokers include import/export agents, food brokers, manufacturing agents, and auction companies. The brokers and agents sell products, such as apparel, petroleum products, food, dry goods, and farm products.

In North America, the wholesale industry is highly concentrated. Large wholesale firms dominate the market, specifically those dealing with building products, hardware supplies, automobiles and parts, pharmaceuticals and food segments. These giants possess their own network of franchises or retail outlets sponsored by company, corporate stores, and maintain strong links with the retailers. The US wholesale market is one among the most important sectors of the US economy. The sector demonstrated resilience to the global economic crisis, and remained to play active and important role in the supply chain processes. The US wholesale industry supports varied businesses, and comprises of more than 290,000 independent wholesale distributors.

Most of the wholesalers in the US are opting for Radio Frequency Identification (RFID) technology, to keep track of the in-stock goods and delivery status. RFID tags are coupled with a receiver system and satellite to allow distributors keep track of the number of goods that are available in-stock, so as to place orders for the products before they run-out of stock. The transit linked to the RFID tags allows wholesalers to ensure the delivery status of a particular product. Many large wholesalers are even entering into contracts with manufacturers to incorporate their name on the RFID label, so that the level of service provided by the distributor is associated with the brand that is managed by them, instead of the manufacturer.

The research report titled “Wholesalers: A Global Outlook” announced by Global Industry Analysts Inc., provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a rudimentary overview of the industry, highlights latest trends and demand drivers region wise, in addition to providing statistical insights. Regional markets briefly abstracted and covered include United States, Canada, Japan, Germany, UK, and China among others. Market discussions in the report are punctuated with fact-rich market data tables. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of companies worldwide.

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