Do you know about - The Disappearing Wholesalers
High Point Insurance! Again, for I know. Ready to share new things that are useful. You and your friends.What has happened to the original jewelry trade over the past 5 years? The phenomena I am going to discuss has accelerated over the past 24 months as the global "credit crunch" accident continues and deepens. Notwithstanding the various news reports in the media about the Us, British and Western European economies emerging from the recession and exciting towards growth - and the slowly enhancing situation for the WalMart and Tesco's out there, when speaking to anything in the jewelry and brilliant firm who is willing to be frank and open, they will reluctantly admit that this "new era" is here to stay for a while and it is time to fast adapt to the new situation.
What I said. It isn't outcome that the true about High Point Insurance. You check out this article for information about a person need to know is High Point Insurance.How is The Disappearing Wholesalers
The so called "global village" and "e-commerce" era has completely transformed and revolutionized the jewelry and brilliant supply chain from one that consisted of a long and extensive list of suppliers, middle men, agents, and numerous other coupon/commission takers on the way to the consumer, into a short and streamlined channel that emerges direct from the source and concludes with the contemporary technologically industrialized consumer, who is influenced strongly by public media and vast amounts of data from the internet. Today consumers are researching, comparative shopping and conclusion sales online at various levels of price points for all sorts of jewelry from fashion, to silver, to gold and brilliant jewelry and even for exclusive designer jewelry pieces.
The first long serving and trusty member of our trade's supply chain - the original jewelry distributor - who for decades has been importing, distributing and serving the regional and national jewelry shop - has (to use an analogy) been brutally shoved off the fast exciting train and left lying in the muddy ditch fatally injured and bleeding. Most of these wholesalers have not recovered and will unfortunately, or fortunately depending on from where you stand in the supply chain, never recover from their 'injuries' and have had to accept their fate, constantly trying to superficially and unsuccessfully dress their wounds (deserting customers, insoluble customers, manufacturers cutting them out, etc) -by taking on more loans and salvage energy bills by dimming the lights in their antique showrooms. This was once a place that used to be a bustling and active area with a steady flow of visitors while firm hours. Today it's like a nightclub where the barman wears a t-shirt print saying "I have swine flu".
These wholesalers have ended up with a marble / granite lid over their firm with an engraving on the tombstone stating - 'thanks for your service and sustain over the good years sucker but we don't need you anymore'. The go for few old and loyal customers (his father purchased goods from the distributor in the 70's and 80's) may pay a visit once in a while and see how the flower bed colse to the graveyard of the firm is doing and then leave a small donation (pity purchase) to help pay for the gardening.
As a consequent of the above situation, the jewelry manufacturing community, primarily in China, India and other Far Eastern locations, witnessing the disappearance of the wholesaler, made a quick move and began to offer their merchandise directly to the independent high road jeweler.They conveniently hid their "terms and conditions" small print on the reverse of the order form and gave up on minimum quantity requirements, canceled shipping costs, and for the icing on the cake - generously offered extended credit terms with prices economy than the distributor used to offer. All you had to do, is let them in the front door. They also started to send usually a rep all the way over to visit from China - even if situated in the small high road of a remote Scottish village - and leave you with trays of goods on a memo/consignment basis until his return on the next sales trip.
By doing a simple Google hunt and reading the "about us" pages of the well known brilliant moguls and jewelry manufacturers, you can clearly see that they have not only passed over the distributor (on their trek to a 'decent margin' dream) some of them have now even conveniently skipped their customer's customer (where the trek ends) - the independent high road family jeweler / chain store and are now selling online directly to the consumer!. Let's face it - it worked for the assurance associates - they dropped their agents a long time ago and sell online directly to anything that will pay. Same story with the major airlines - when was the last time you bought an air ticket from your local high road voyage agent?
The savvy distributor that is aware of what's happening colse to him has made the gradual transition himself - instead of being thrown off the train he has chosen naturally to move to other carriage whether in front of him or behind him - up or down the supply chain. He may have started manufacturing locally on his own - developing a basic line and branding it, or alternatively elegantly skipped over his own customer (who has by now industrialized his own market website targeting the same end user).Winston Churchill, after Ww2, in order to save the British economy gave some very useful guidance to the firm community: "export or die" - well today in our commerce we can apply a similar quote: "establish yourself online or die."
However - there is still one good reckon for the distributor to exist. Although only the tough ones will conduct to survive -meaning only those with a bank catalogue that is as deep as a black hole (surely only those with the finances their former generation made in the 70's and 80's - the good old wholesaler's days). It's called a bank.The shop can't afford to buy merchandise anymore on 30 days terms! The credit crunch has crunched their credit line down to a knife's edge. They desperately need the distributor to fill their windows with goods while the year while only paying months after the all leading Christmas season. The query is; for how long will the original distributor survive at this rate?
It looks to me more like we are witnessing the end of the wholesale trade and welcoming in a new era of direct supply to the fortunate end customers.
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