Advantages in Wholesale Business:

  • Less investment risk
  • High diffusion of different product types
  • Lower margin of contribution

Disadvantages in Wholesale business:

  • Lower brand image
  • Credit risk
  • Absence of complete control over merchandising

Advantages in Retail Business:

  • Stronger brand image
  • Complete control over merchandising
  • Organization complexity

Disadvantages in Retail business:

  • High investment risk (key money)
  • Fewer distribution channels (main cities)
  • higher margin of contribution

∗key money – a payment made to a building manager or a landlord by a potential tenant in an attempt to secure a desired tenancy

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