The pandemic has hit the fashion industry hard. Retail stores closed, our spending habits changed, and popular brands worldwide went bankrupt. Fashion Month got canceled, and supply chains took a severe nosedive. However, some brands adapted to the ever-changing retail climate and stayed 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 the apparel and footwear sectors by the end of 2020. It’s time to rethink your supply strategy with closed factories, limited staff numbers, and restricted shipping regulations.
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 to make the most of it. Use a supplier-first approach to mitigate significant financial risks and keep your business running.
Digitalise!
Economic forecasting is an essential part of any retail business. Use innovative software to monitor shopping behavior 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 analyze everything from political changes to social media trends. Thus, you can stay relevant and ahead of the industry without hiring more employees.
Besides, when the software does all the work – you have more time to innovate and balance supply versus demand.
Prioritize sustainability
Up to 88% of consumers want their favorite brands to be more environmentally friendly. Millennials and Gen Z comprise a considerable portion of your consumer base; they mostly 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. This will support your local community and help reduce greenhouse gases! 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 recently noticed decreased customer purchases. The environment should be at the heart of your brand’s fundamental values. By reducing excess inventory, you can save yourself time and money.
