20 | The History of Glasses: Kimoto Glass's Challenge and the Story of Glass Manufacturing 3

Why do wholesalers still exist? How did Kimoto Glass survive?

I will explain this to you from the perspective of the wholesaler's functions.

This time, following the first function from last time, "adjusting supply and demand," we will discuss the second and subsequent functions.

② Streamlining logistics

Wholesalers are responsible for streamlining logistics between manufacturers and retailers.

Without a wholesaler, manufacturers would have to visit each retailer individually to deliver their products. However, since the quantity of products a retailer needs from a single manufacturer is limited, small deliveries would have to be made to numerous stores, leading to clearly inefficient distribution. By having wholesalers handle logistics, products from multiple manufacturers can be delivered to retailers together, thereby streamlining logistics.

③ Handling a wide variety of products

The third point is that by handling products from multiple manufacturers, it becomes possible to propose a diverse range of products. Even if retailers receive product proposals from each manufacturer individually, they need to optimize the entire sales floor. Therefore, when wholesalers/distributors consolidate products from multiple manufacturers, they can make attractive proposals to retailers. Kimoto Glass also collaborated with numerous manufacturers to propose the best product selection to its retail customers.

From a retailer's perspective, if only price negotiations are considered, it would be more advantageous to deal directly with each manufacturer. However, considering the time and effort required to negotiate with each manufacturer and product, this is not practical. By having wholesalers mediate, negotiations can be conducted collectively, which is more efficient for retailers.

④ In-store sales promotion support

Only a wholesaler, who consolidates diverse products from multiple manufacturers, can make attractive proposals in-store. For example, by displaying products from different genres together, impulse purchases can be encouraged, and information about consumers obtained through in-store sales promotion support becomes valuable marketing information. By returning the latest trends and consumer behavior to manufacturers, they also contribute to better manufacturing.

⑤ Smooth collection of payments

It takes a long time for a manufacturer's product to reach the consumer. During this time, manufacturers also face inventory risks because they hold production lots and numerous items, and they need to proceed with the development and production of their next products. Therefore, when they can collect sales payments is an important issue.

By having a wholesaler mediate, manufacturers can collect payment as soon as they deliver to the wholesaler, allowing for a smooth flow of funds for new investments and production. Wholesalers also play a crucial role in financial aspects.