DTC vs. Wholesale; Choosing the Right Sales Model for Your Fashion Brand

Once you’ve nailed your designs and production plan, the next question is: How will you sell your collection? Two of the most common approaches are direct-to-consumer (DTC) and wholesale and each comes with its own advantages, challenges, and strategic considerations.

At AJG Fashion Consulting, we help brands navigate these models so they can build a sales strategy that works for their product, audience, and stage of growth.

DTC: Direct-to-Consumer Sales

In a DTC model, you sell directly to your customer through your e-commerce store, social media, or pop-up events without a retailer in between.

Best for brands who:

• Want complete control over pricing, branding, and the customer experience.

• Have the resources to market directly to their audience.

• Value a direct relationship with customers.

Benefits of DTC:

• Higher Margins – You keep the retail markup instead of selling at a wholesale price.

• Customer Data – Direct access to feedback and purchase behavior.

• Brand Experience Control – Every touchpoint reflects your vision.

Challenges:

• You carry all marketing, customer service, and fulfillment costs.

• Driving traffic and converting sales requires a strong digital presence.

Wholesale: Selling Through Retailers

With wholesale, you sell your product to a retailer at a set price, and they sell it to the end customer. This could be through boutiques, department stores, or online marketplaces.

Best for brands who:

• Want to tap into established retailer audiences.

• Have the production capacity to fulfill larger orders.

• Are aligned with seasonal buying cycles.

Benefits of Wholesale:

• Built-In Exposure – Capitalize on exposure from the loyal customer base the retailers have built.

• Bulk Orders – Larger runs improve production efficiency and costs.

• Reduced Marketing Costs – Retailers handle much of the promotion.

Challenges:

• Lower profit margins per unit.

• Retailers set terms, timelines, and merchandising.

Blending the Two

Many brands find success with a hybrid approach starting DTC to build direct customer relationships and layering in wholesale to reach new audiences. This way, you can enjoy the higher margins of DTC while leveraging wholesale’s reach and volume.

The right mix depends on your pricing strategy, production capacity, and marketing strength. We work with brands to build models that keep margins healthy while scaling sustainably.

If you’re deciding which path makes sense for your brand or how to combine them, reach out here to start planning your sales strategy!