The latest buzzing news has wreaked havoc in the wedding industry. The seemingly “unthinkable” has happened. Alfred Angelo, one of the largest bridal brands has gone bankrupt within a very short span. What is left behind is not only disappointed brides, hurrying to find a great wedding dress, but the retailers who are victim of unhealthy industry practices.
This will not be the last occurrence. Alfred Angelo’s bankruptcy should be no surprise. In hindsight, we can see how unbalanced the power dynamics between brands and the small shops that carry them are; brands like Alfred Angelo require small bridal shops to make large investments and carry more dresses than they can handle in their inventories whereas they take large risks by producing dresses that are not guaranteed to sell. Most brands think that as long as the shops buy their goods, it’s OK, they make their money, and whether bridal shops get to sell them to brides or not is their problem.
The problem with this type of business model is that if bridal shops are vulnerable and do not have a viable income, bridal factories as well as bridal brands can not survive either. We fear that Alfred Angelo will not be a single, exceptional case, it might even cause a domino effect that might sweep hundreds of bridal boutiques out of business.
Many bridal shop owners think it’s safer to work with well-known bridal manufacturers and become authorized dealers. In fact the illusion of “playing it safe” is no longer the reality. The old business model is no longer viable, nor is it reliable. Bridal shops should consider working with factory-direct wedding wholesalers; the ones who actually produce the high quality wedding dresses. This is not only cost effective, but also minimizes the risks of a sudden discontinuation of certain wedding dresses. Partnering with factory-direct wedding dress wholesalers not only maximizes profits; it also allows everyone in the industry to thrive together. In this relationship, there is no exploitation involved, this type of business model is symbiotic and mutually beneficial.
As Premium Bridal Factory we are highly aware that the wedding industry is shifting dramatically. In order to survive together, we offer radical changes that prioritizes the profits of the bridal boutique, rather than the other way round. As an industry, let’s not repeat the mistakes of the past; let’s try something new. Countless boutiques across the US have started to reevaluate the way they stock up their inventory, and have started working with Premium Bridal Factory. This is no surprise, given that our business model is more lucrative for bridal shops. We invite you to join the movement. Let’s make the wedding industry a less vulnerable one together.