The pandemic has hit the fashion industry hard. Retail stores closed, our spending habits changed, and popular brands across the world went bankrupt. Fashion month got cancelled, and supply chains took a severe nosedive.
However, some brands adapted to the ever-changing retail climate and managed to stay afloat. Sustainability, technology and flexibility are at the heart of these brands and their updated business strategy.
Use these business tips and tricks to survive the impact of 2021.
Rework your supply chains
2020 changed the retail game and disrupted supply chains throughout the industry. There was almost a 30% decline in apparel and footwear sectors by the end of 2020. With factories still closed, limited staff numbers and restricted shipping regulations, it’s time to rethink your supply strategy.
Consider shortening lead times on orders by ordering what you need when you need it. Operate on a week-to-week basis and keep a close eye on the numbers. Watch out for quick turns in demand and have an effective responsive prepared so you can make the most out of it. Use a supplier-first approach to mitigate significant financial risks and keep your business running.
Economic forecasting is an essential part of any retail business. Use innovative software to monitor shopping behaviour and connect your users with the factory floor.
Data-driven software can produce pieces consumers are likely to buy and thus, make you more money. The software will analyse everything from political changes to social media trends. Stay relevant and ahead of the industry without hiring more employees.
Besides, when the software is doing all the work – you have more time to innovate and balance supply versus demand.
Up to 88% of consumers want their favourite brands to be more environmentally friendly. Millennials and Gen-Z make up a considerable portion of your consumer basis, and for the most part, they want to invest in sustainable brands. Ignoring sustainability can damage your brand’s image and future earnings.
Consider using local suppliers to deliver small volumes of high-quality pieces and build personal relationships with these businesses. Support your local community and help to reduce greenhouse gases in the process!
So, the next time, you need to order women’s tops – turn to your local supplier instead of wholesale retailers.
Almost 50% of fast fashion retailers have noticed a decrease in customer purchases recently. The environment should be at the heart of your brand’s fundamental values. You can reduce excess inventory and save yourself time and money in the process.