Responsive Retail: How Faster, Smarter Supply Chains Can Limit Discounts
In a perfect world, apparel stores would predict consumer demand with prophetic accuracy, order the exact inventory needed months in advance, and sell every item at full price, leaving customers delighted and stocks depleted.
How Brands Get Stuck With Discounts And Stockouts
As products linger on the racks, companies slash prices to make them more compelling. In fact, the industry’s reliance on discounts has largely trained consumers to expect prices to drop, sending them straight to the sale section while sneering at full price items.
Supply Chain Solutions To Faster Fashion
If you had the ability to restock in weeks instead of months, you could order everything in small amounts, see what’s selling, and respond to demand as you go, offering exactly what your consumers want at full price.
Relationships: Communicate with Your Entire Supply Chain
If you only work through the fabric manufacturers, you’re relying on them for all sourcing decisions. Need a fast order? If you can’t get right yarn quickly enough, you’ll have to change suppliers, which changes the fabric giving your customers an inconsistent experience and risking lost loyalty.
Strategy: Pre-Position Yarn & Fabric
Work with your supply chain to pre-position your most widely used fabrics and yarn; by investing ahead of time, you’ll have the raw materials on hand and dramatically reduce your speed to market.
Location: React Faster with American-Made Products
Sourcing from American companies doesn’t just ensure a higher quality product it’s also dramatically faster to receive shipments.
The Result: Affordable Fast Fashion
With these strategies in place, brands can enjoy significantly faster speed to market times of mere weeks. With a strong, smart, and nimble supply chain, you’re free to make smaller, faster orders to capitalize on the latest trends while curbing discounts and stockouts.
“It’s not just a winning business strategy; it’s a path to greater peace of mind. By relying on your entire supply chain to guarantee rapid production, you can stop and start as the market demands without worrying about excess waste and offer your consumers the products they want today” said the president of Grupo Denim Salomón Juan Marcos Villarreal.