Retail has always been a challenging industry, and 2024 has proven no different, especially in the fashion sector. For every thriving boutique, another one is struggling to stay afloat. With so much variability in the market, we set out to find the common thread amongst successful shops.
After analyzing hundreds of millions of dollars in sales across stores, websites, and our marketplace, Shoptiques.com, one lesson stood out above the rest:
Boutiques with strong partnerships with great brands are thriving, while those carrying more generic or lesser-known brands are falling behind.
What is a great brand?
When we say “great brands,” we’re not talking about luxury names like Prada or Louis Vuitton. Instead, we mean brands that are widely coveted, accessible at various price points, and resonate with today’s shoppers. These brands have the products your customers are actively seeking—the ones they’ve seen on social media, in influencer posts, and across their favorite platforms.
Here are a few standout examples from 2024:
- Birkenstock (shoes)
- Z Supply (clothing)
- Enewton Designs (jewelry)
- Consuela (handbags)
- Jellycat (plush toys)
- Maileg (children’s toys)
These brands have achieved what we call “social relevance,” driving demand far beyond their traditional markets.
Carrying generic or lesser-known brands is a losing strategy
The rise of online giants like Amazon—and newer disruptors like Shein and Temu—has made the market for unbranded or commodity products highly competitive, and not in a good way.
For example:
- If a customer needs a plain black dress, why pay $80 at a boutique when they can get a similar one on Amazon for $20?
- And with platforms like Temu and Shein undercutting Amazon on price, customers are finding even cheaper options—sometimes as low as $12.
This race to the bottom leaves little room for boutiques to compete on price alone. Worse yet, these platforms don’t just compete—they dominate unbranded categories by offering low prices, fast shipping, and convenience.
In contrast, brands like Birkenstock and Jellycat succeed because they’re exclusive. Platforms like Amazon, Shein, and Temu don’t have access to these brands’ products. That exclusivity creates value and demand.
Social media amplifies this effect. Whether it’s the latest trendy toy or a pair of must-have shoes, influencers and ads flood every platform with the same few hot items. When customers see these products, they know exactly where to find them: at trusted retailers, often local boutiques.
The role of boutiques is critical
Boutiques continue to serve as go-to sources for these coveted brands. Unlike massive online retailers, many brands carefully select their resellers, prioritizing partnerships with trusted, community-based businesses. These small and medium-sized shops play an outsized role in local economies and offer something big platforms can’t: trust and personal connection.
A boutique might be a long-standing fixture in a small town or an up-and-coming shop making waves in a larger city. Regardless, these stores are uniquely positioned to sell the brands that matter most to customers.
How you can meet the challenge
Whether you’re already working with great brands or just starting to explore building partnerships with them, here’s how to move forward.
If you already carry great brands
Double down. Continue to stay ahead of trends by keeping an eye on emerging brands that fit your store’s aesthetic and price point. Being the first in your area to stock a hot brand can set you apart.
If you don’t have your desired brand relationships yet
Start experimenting. Research the brands that are resonating in your niche and reach out to explore partnerships. Begin with small, calculated buys to test customer interest. Once you identify what works, scale your efforts accordingly.
Always experiment and be open to adapting your inventory mix based on what is moving and what isn’t.
The retail landscape is constantly changing, and staying relevant requires continuous learning. Experiment with new brands, marketing strategies, and customer experiences to keep your boutique fresh and competitive.
Build a strong foundation in 2025
As we saw in 2024, the boutiques thriving are those that invest in strong partnerships with great brands. The formula is simple but effective: sell the brands customers want, maintain your boutique’s unique charm, and build trust with your audience.
By focusing on these core value propositions, you can position your boutique for sustained success—even in the face of retail’s many challenges.
