The merger of COLECT and LE NEW BLACK, two leaders in digital wholesale, will reshape the European wholesale landscape. Both companies, with offices in fashion capitals such as Paris, New York and Amsterdam, are seeking to expand their reach across Europe, including Italy and Spain, while increasing their market penetration in the US.
The merger aims to consolidate the B2B sales market and provides the two platforms with additional support for their respective global networks of nearly 1,000 fashion and lifestyle brands and over 100,000 retailers. COLECT has world-famous brands such as SuperDry, GANT, Marc O’Polo and Triumph in its portfolio, while LE NEW BLACK manages high-fashion brands such as Kenzo, Rimowa and IKKS. Both will combine their expertise and resources to offer their customers enhanced services and the tools necessary to grow and succeed in the digital age, without losing their individual brand identities.
“Our goal is to enable all brands, regardless of their size, to enter digital wholesale,” explains Arthur Hoffman, CEO of the merged company. “COLECT and LE NEW BLACK pursue a common vision: We want to strengthen established brands and We support those who want to expand their B2B sales by offering solutions for the digitization of wholesale trade.”
Acceptance of rapid changes
The merger is not only a strategic decision, but also a response to the industry’s challenges, such as resource constraints and changing consumer demands, and reflects the drive for sustainable and responsible sourcing. In a world where the demand for responsible fashion and the preference for sustainability and affordability are growing, wholesale is proving to be a key solution. It strengthens the connection between brands and buyers and ensures sustainability in the fashion and lifestyle industry, with digital wholesale platforms playing a crucial role.
“During and following the COVID-19 pandemic, we saw a significant digital acceleration in the B2B wholesale industry, incorporating new virtual and hybrid selling methods and aimed at reducing service costs,” explains Hoffman. “Given current inflationary pressures, we see that Brands are focusing more on cost measures, working more efficiently and optimizing inventory levels at their retailers. Our solutions support these needs by providing more efficient digital sales methods, supported by data analytics, and self-service options for retailers. For new customers, COLECT recently launched a free three-month trial period with dedicated ERP partners. This is intended to lower barriers to entry and allow brands to experience the full benefits of a free trial period in which we fully take care of the technological integrations.”
“Over the last 15 years, wholesale has evolved from a classic SS/FW calendar, characterized by a typical fluctuation of pre- and re-orders, to a much more complex and diverse calendar with pre-collections, capsules and exclusive items, which today have a significant make up part of the business. In addition to this calendar fragmentation, COVID-19 has recently raised concerns about inventory levels, meaning both brands and retailers must now step up their efforts to mitigate the risk of unsold items through various strategies and compromises,” explains Bernard Coulombel, co-founder and technical director by LE NEW BLACK. “These two trends require brands to become increasingly agile to manage such complex sales agendas. B2B platforms are now essential to maintain and maintain sales relationships, but also to strategically manage the wholesale lifecycle . COLECT and LE NEW BLACK both embody a culture driven by the desire to closely adapt to the unique needs of fashion and lifestyle brands. This culture motivates them to understand emerging sales patterns and then develop highly intuitive tools, to effectively address these evolving patterns.”
The market dynamics also show that order management in wholesale is largely digitalized. But the dominance of a network-oriented approach that aggregates brands and emphasizes its own network effect highlights the potential for a business-oriented strategy that improves relationships between brands and buyers. This is where the merger of COLECT and LE NEW BLACK comes into play. The newly formed group aims to differentiate itself from the competition through its approach by promoting the uniqueness of brands and creating private, clearly defined spaces for each brand.
Improved customer experiences
“We believe the merger will be beneficial for everyone involved,” said Hoffman. “We want to be the trusted local tech partner that helps fashion brands thrive while always keeping their best interests in mind.”
Both companies assure their existing customers that the merger will leave operations largely unchanged. “The merger will not affect the operations of either company in any way. Both COLECT and LE NEW BLACK have a strong presence in various international territories and will continue to operate as usual, with the same people, technology and services that customers know and value. “By combining, we will have more resources, capabilities and capabilities to better serve all of our customers and deliver more innovations, new features and product improvements in the near future,” explains Hoffman.
An optimistic vision for the future
The strategic collaboration, based on shared values to help fashion and lifestyle brands achieve digital success, is also an important step towards a better future for the industry. Hoffman explains: “We met for the first time two years ago in Paris, where we laid the first foundation for this merger. As you can imagine, merging a Dutch and a French company is not an overnight undertaking. The discussion took concrete shape at the end of last year, and over the past few months we have had the opportunity to get to know each other’s business areas really well, identify synergies, adapt to the company culture and future vision and meet the teams. This gave us the right feeling and created the trust we needed to embark on this exciting new journey together.”