Whether you like the theme “Fashion” or not, it is undeniable that this industry has revolutionized the Supply Chain. Before, with a traditional model of just four annual collections accompanying the seasons, large luxury brands dominated the market and only a few more affluent consumers had access to pieces with a fashion trend, paying a high price for it and after a long period of launches on the catwalks. With the expansion of Fast Fashion, the business model of many companies began to be accompanied by several collections throughout the year, copying the fashion trends of luxury brands, with pieces at more affordable prices just weeks after launches, thus allowing a democratization of fashion.
In order for the trends paraded on the catwalks to reach the customer in a short period, it is necessary to compress the production cycle of the garments. This entails shortening the supply chain, ensuring direct control over production and logistics, as well as the supply of raw materials, thus achieving vertical integration.
All this progress in the Fast Fashion Supply Chain was driven by the various initiatives applied in this sector, many of them very technological. An example of this is the large investment in forecast to predict colors and models that consumers will prefer in the coming seasons. There is also the use of the test and repeat method, that is, small batches are produced and the market response is verified. To keep prices low, many Fast Fashion companies outsource their production to countries where the manufacturing cost is low and then transport their clothes to where they will be sold. There are also indications of the application of artificial intelligence in this sector: software researches on the websites of large brands and social networks and captures fashion trends to be reproduced in the pieces.
In Brazil, it is possible to identify that there has been a great growth in the fashion sector, especially in the post-pandemic period. With the explosion of e-commerce, the main fashion retailer, for example, quadrupled its staff. However, Fast Fashion is still a developing business model. Many popular brands with very similar characteristics to foreign brands that follow this business model do not fit into this category. They guarantee to be quick in their productions, without necessarily being disposable, investing in better quality raw materials.
To achieve better results, the fashion sector is always looking for innovations in relation to the Supply Chain. In terms of storage, logistics operators are investing in renewing assets directly linked to operations, with a view to automating processes whenever possible. Solutions such as conveyor belts, optical readers, digital/laser cube meters, RFID. However, it is always important to analyze the context of the company, because to implement technology in the operation it is necessary that the investment has a good return. In transport, there is greater use of more compact fleets and, consequently, more agile for fractional deliveries door to door, since the delivery time is a differential for the consumer's choice at the time of purchase.
Much has been said about collaboration and sharing: companies share from Distribution Centers to routes and trailers, seeking to optimize costs and be more sustainable. It is also a strong trend for companies to invest in tracking, as today it is a differential for the final consumer to follow the information of their product step by step. It is also important to have processes that allow for omnichannelity, that is, that there is intelligent integration between logistical operations in the online and offline environment, reconciling the availability of products spread across the territory with the different demands for frequency of supply in physical stores and virtual channels. .
Although the Fast Fashion model has brought several advances to the Supply Chain, it has brought several debates to the fore. This industry faces harsh criticism in relation to sustainability for encouraging unbridled consumerism, using non-biodegradable raw materials and not being transparent about the origin of its labor. Even with all this negative side, it is evident that this industry has been developing its processes more and more and they serve as a mirror for several other sectors.
References:
In The Supply Chain (10/03/2020) – The Fast Fashion Supply Chain – A Strategy of Spped
We export (28/10/2019) – Fashion Supply Chain: the fast-fashion model in fashion
See (23/07/2021) – Fast fashion: fast and disposable fashion, now online
MHLog (04/04/2022) – The logistics challenges of a clothing e-commerce
Logweb (05/03/2021) – Logistics in the textile and clothing sector reflects a change in consumption behavior
Draft Project (03/08/2022) - More sustainable clothes, IoT, 3D, metaverse, logistics technology…: Lojas Renner’s innovations to delight customers (and shareholders)
InfoMoney (08/03/2022) – Shein in Brazil: expansion of Chinese company makes analysts more cautious with fashion retailers
TradeMap (15/06/2022) – Fashion retail: the challenge of the BRL 115 billion Brazilian market
