How much do brands spend on getting their products into the hands of their customers?
The answer to that depends on who you ask – design and development teams have target margins for landed FOB from their source factories, merchandisers and supply chain deal with distribution costs, inventory obsolescence, and discounting, marketing and sales deal with demand generation and store costs. And depending on the sales channel - e-commerce, owned retail, and wholesale - margin breakdowns can look very different.
Below is a sample margin breakdown from an omnichannel name brand that can demand high price-value with wholesale partners, better than average sell-through via owned retail, and an efficient distribution network for e-commerce operations. In short, below is the best-case scenario for a well-run mid-market brand.