info@nuorder.com | © NuORDER Inc.

2018 B2B eCommerce

Brand Survey Results

About NuORDER

Founded in 2011, NuORDER is a B2B

eCommerce platform that digitizes the

wholesale sales and buying process. We

help brands drive sales and empower

retailers to buy more effectively.

NuORDER provides the world’s leading

brands and retailers a central hub to shop

line sheets & catalogs, access real-time

inventory and place orders from a computer

or mobile app – 24/7/365.

About This Survey

Much of the news cycle has focused on the

demise of physical retail and the dominance

of a few large online retailers. While we

knew the fears of a “retail apocalypse” are

overblown, we recognized that there are

major shifts in retail. In this survey, we

wanted to hear from the brands that rely on

retailers for distribution to learn how they

are responding to these changes and how

they’re planning to grow their businesses in

2018 and beyond.

Survey Methodology

• NuORDER commissioned Regina Corso Consulting to

conduct a survey of wholesale brands to see how they

view the transformation of retail.

• This survey is among 401 U.S. respondents who work at

branded manufacturers that sell through wholesale.

• They have a title of at least manager, who work in either

sales/wholesale, marketing/merchandising, IT or

operations and who work in one of the following industries:

fashion and apparel, footwear, accessories, children’s

goods and/or toys, outdoor equipment/wear, sports

equipment/wear, home goods or food and beverage.

400U.S. Respondents

10Industries

13Questions

Results & Insights

Impact of B2B eCommerce platforms

on new business sales

21%

5%

28%

46%

0% 10% 20% 30% 40% 50%

We have not seen an increase in new business

New business has increased by 100% or more

New business has increased by 50% or more

New business has increased by 20% or moreKEY INSIGHT

Nearly 80% of brands

who use a B2B

eCommerce platform

see a sales lift of 20%

or more. One in three

see 50% or more

growth.

Impact of B2B eCommerce platforms

on average order value

39%

31%

4%

26%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

AOV is up by 20% ormore

AOV is up by 40% ormore

AOV is up by 100% ormore

AOV is unchanged

KEY INSIGHT

Three out of four brands

see large increases in

average order value

through the use of their

B2B platform

Primary strategy for achieving

2018 revenue targets

34%

29%

23%

9%

4%

0%

5%

10%

15%

20%

25%

30%

35%

Selling wider and

deeper into

existing accounts

Finding new

business

Focusing more on

B2C instead of

B2B

International

expansion

Drop shipping on

behalf of retailers

KEY INSIGHT

Brands who plan to

achieve sales goals by

selling more into existing

retail accounts must

innovate on the sales

process to achieve their

goals.

This includes selling

through personalized

merchandized

presentations and

selling “collections”

rather than “units.”

How brands will help retailers drive sell through

2%

38%

38%

41%

46%

48%

54%

0% 10% 20% 30% 40% 50% 60%

Something else

Provide direct to consumer drop shipping

Visual assortment tools, merchandising support

Flexibility to place more orders in-season

Real-time data and sales and trends

Provide better tools for discovering product andplacing orders

Incentivize them with discounts, performancerewards and other benefits

KEY INSIGHT

While incentives and

discounts are important,

they are not enough to

drive sell through.

Brands need to provide

comprehensive support

to their retail partners.

Biggest threat to current wholesale business

12%

14%

22%

24%

28%

0% 5% 10% 15% 20% 25% 30%

Off-price retailers

The decline/evolution of big box/department storeretail

Brands focusing on direct to consumer channels

Retailers focusing on their own brands

Price pressures from Internet retailers

KEY INSIGHT

Retailers are innovating

to adapt to the rapidly

changing landscape,

which is challenging

established, traditional

wholesale practices.

Brands will need to

innovate as well to

properly support retailers

in this new environment.

Brands are diversifying

their mix of retail partners

32%

22%20%

8%

18%

0%

5%

10%

15%

20%

25%

30%

35%

Focus more on

new business

models -

subscriptions,

personal shopping,

daily deals

Focus more on

specialty retailers

Focus more on

Internet retailers

Focus more on off-

price

No planned

changes

KEY INSIGHT

With department store

business declining (less

doors & less shop floor

space) brands are thinking

of new ways to maintain &

grow their business and

looking at new channels

that are in growth trends

to sell into. Specialty

stores are a key

strategy. Subscription

services including Stitch

Fix and Trunk Club

provide brands a great

way to generate

awareness among

consumers.

Adjusting to the loss of retail square

footage in big box and department stores

35%

23%

20% 19%

4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Focusing more on

merchandising

within the

remaining space

we have

Focusing more on

Internet retailers

Focusing more on

specialty retailers

Growing our B2C

channels

Something else

KEY INSIGHT

While brands are

diversifying their

distribution channels,

they are not giving up

on big box and

department stores.

Despite the reduction in

square footage, these

retailers are still hugely

important to brands.

Most exciting and scary retail

business models for brands

36%

25%

22%

17%17%

21%

24%

38%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Daily deals Personal Shopping Subscriptions Off-price

Excited about Wary of

Brand sentiment on changes in retail

81%

82%

83%

89%

76% 78% 80% 82% 84% 86% 88% 90%

The growth of private store brands by retailers is

a problem for brands who have to both partner

with and compete with them

If the large retail outlets are changing the "rules"

by creating private labels, their wholesale

partners and the brands that sell to them need to

change the rules as well

This is the time that brands should shine as, with

eCommerce (retail and direct to consumer), the

opportunities are endless for getting the product

to the consumer.

The large online retailers have changed how

customers now expect all retailers to operate.

KEY INSIGHT

The once clearly

delineated roles within

the retail ecosystem are

quickly blurring, and

partners are now also

often competitors.

But brands are still

optimistic and see

increased importance in

strong, collaborative retail

partnerships.

Pre-season vs. in-season manufacturing plans

24%

26%

49%

0% 10% 20% 30% 40% 50%

Pre-season is important, but we're no longer

cutting to order

We're now primarily focused on in-season

orders

We're trying to firm up as many orders as

possible pre-season so we can cut to order KEY INSIGHT

While brands still

manufacture based on

firm demand, the

market is moving

towards on-demand

models to shorten the

time between product

creation and

consumption.

Brands’ views towards trade shows

51%

31%

18%

0%

10%

20%

30%

40%

50%

They're great and we're

continuing to invest in shows in

2018

They're a necessary evil. We'll

attend, but only because we

have to be there

They're a waste of money, we're

minimizing wherever possible

KEY INSIGHT

Brands are losing

confidence in trade

shows as retailers need

to continuously find new

products for their stores

to meet ever-changing

consumer preferences.

They can no longer rely on

semi-annual trade shows.

Sales Rep hiring plans

51%

31%

22%20%

0%

10%

20%

30%

40%

50%

60%

We're continuing to hire

new sales reps in 2018

We're relying more on

inside sales reps than

outside reps

We're reducing our rep

force in 2018

No planned changes

KEY INSIGHT

As the brand-retailer

relationship grows more

collaborative, sales reps

become more important for

brands. Reps need to be

more consultative to

retailers and provide them

with more personalized

recommendations.

Sales Rep budgets

28% 27%29%

58%

49%47% 47%

33%

23%

26%

23%

9%

0%

10%

20%

30%

40%

50%

60%

Travel/Roadshows Trade shows Printed materials Tools and Technology

Increasing Flat Decreasing

KEY INSIGHT

Brands are looking to

tools and technology to

increase rep efficiency

and help them sell

deeper into existing

accounts.

Conclusions & Recommendations

Brands recognize that the retail landscape is changing, but remain optimistic

Big box and department stores are contracting, while big Internet retailers are exerting greater influence over retail.

However, brands aren’t abandoning retail in favor of exclusive direct to consumer models.

They recognize the ongoing importance of retail to their business

Brands continue to invest in retail partnerships. Rather than walking away from big box and department stores, they’re

focused on doing more with less space.

But they know they need to innovate to adapt to the changing retail landscape

Brands need to adapt to compete in the quickly changing retail environment. As such they’re focusing on cultivating a

portfolio of specialty retailers, working to sell wider and deeper into existing accounts, and supporting retailers with more

incentives, tools and data.

Brands that leverage a B2B eCommerce platform have a competitive edge

Brands that have invested in a B2B eCommerce platform are seeing much higher growth in new business, reorder business

and average order value than brands who don’t utilize a B2B platform.

Thank You