The introduction of the wholesalers system is being considered from various aspects in order to improve the problems of the listed auction system of wholesale corporations. The wholesalers system is a corporation that receives designation from the creator and purchases or consigns agricultural and fishery products to wholesale or broker sales, and has the advantage of reducing the distribution stage and distribution costs. The purpose of this study is to evaluate the wholesalers system introduced to improve the problems of the listed auction system of wholesale corporations through a case study of market wholesalers handling fishery products.

Purposes of this research were to examine characteristics of contractors and the relationship between contractors and wholesalers of apparel products. Influence of such variables on wholesalers’ satisfaction was also assessed. Location, reputation and service were factors of contractor characteristics. Dependence, cooperation and power were three factors that were considered for contractor-wholesaler relationship variable. Survey data from 109 wholesalers located in Dongdaemun Fashion Town in Korea was used for analysis. Empirical results confirmed the importance of service factor of contractor characteristics. Service and location of the contractor had positive influence on cooperation. Location had negative influence on power. Reputation had positive direct influence on wholesaler satisfaction. Cooperation between contractors and wholesalers had significant influence on wholesaler satisfaction.

The current research focused on exploration of a well known Korean fashion and clothing industry cluster, Dongdaemun Fashion Town(DFT). Many clothing and fashion wholesalers in DFT with various business formats are trying to obtain competitive advantages. For the empirical study, a questionnaire was developed. Items measuring descriptive statistics for each business and contractor selection criteria were included in the survey. 161 data from Employees of various wholesalers of DFT were used for statistical analysis. Majority of DFT customers were buyers of Internet shopping malls and street retail shops. 64% of them used domestic contractors for sourcing products. Most of them managed less than three contractors. Contractor selection criteria were factorized as flexibility, production ability, stability, fame and location. Wholesalers were segmented into three groups: product oriented, flexibility oriented and stability oriented groups. Group differences in terms of business practices were assessed and strategic implications were included.