How to Identify Wholesale Opportunities Using Market Gap Analysis
Learn how fashion brands and wholesalers can use market gap analysis to uncover unmet demand, optimize assortments, and win more retail partnerships.
In today’s competitive fashion landscape, wholesale success depends on more than just having the right product, it requires understanding where the market is underserved. That’s where market gap analysis comes in. By identifying unmet demand in categories, price points, or styles, wholesalers can position themselves as the go-to partner for retailers looking to differentiate their assortments.
Notably, McKinsey reports that wholesalers and distributors who leverage advanced analytics in assortment planning can boost sell-through rates by up to 15%. With the right data, market gaps can turn into strategic growth opportunities.
What Is Market Gap Analysis in Fashion?
Market gap analysis is the process of comparing current market offerings with consumer demand to identify where opportunities exist. For wholesalers, this might include:
- Categories with low competition but high demand (e.g., sustainable activewear).
- Price tiers underserved by existing brands.
- Trending colors, fits, or features not yet widely available.
- Regional preferences where localized assortments are missing.
Steps to Identify Wholesale Opportunities
1. Track Retailer Assortments and Competitor Mix
By monitoring what’s on shelves and online, wholesalers can spot categories where retailers are over-indexed (crowded) vs. under-indexed (gaps).
2. Analyze Consumer Demand Signals
Look at search trends, social conversations, and sales data. For instance, if oversized blazers are trending but only a few brands are offering them at mid-tier pricing, that’s a clear wholesale opportunity.
3. Match Gaps to Your Capabilities
Not every gap is right for every wholesaler. Prioritize opportunities that align with your strengths whether it’s speed-to-market, sustainable fabrics, or strong brand positioning.
4. Use Data to Pitch Retail Buyers
Retailers want evidence. Present market gap findings in your pitch, backed by data on consumer demand, competitive gaps, and potential sell-through performance.
Benefits of Market Gap Analysis for Wholesalers
- Stronger Retail Partnerships - Data-backed proposals build trust with buyers.
- Higher Sell-Through Rates - Filling actual demand avoids overstock.
- First-Mover Advantage - Early entry into an under-served category.
- Reduced Risk - Entering markets with proven demand signals.
Conclusion
Wholesale growth isn’t about flooding the market, it’s about finding the right gaps to fill. Market gap analysis gives fashion wholesalers the clarity to align with retailer needs, serve consumers better, and secure more lucrative contracts. By grounding decisions in data, wholesalers move from being just another supplier to becoming a strategic partner.
About Woveninsights
Woveninsights is a comprehensive market analytics solution that provides fashion brands with real-time access to retail market and consumer insights, sourced from over 70 million real shoppers and 20 million analyzed fashion products. Our platform helps brands track market trends, assess competitor performance, and refine product strategies with precision.
Woveninsights provides you with all the actionable data you need to create fashion products that are truly market-ready and consumer-aligned.
Click on the Book a demo button below to get started today.
