Fashion Unleashed: Driving Trends

Supply Chain Innovation is Everything

A fashion masterclass earlier this year brought the heads of the retail world's biggest names together to discuss trends and disruptions driving the fashion industry. In the first installment of this three part series, we'll take a look at how rapidly changing trends – also known as fast fashion – and the increased consumer demand brought on by mobile technology and increased spending power is changing the ways retailers do business.

The fashion industry is fiercely competitive, and in recent years, the competition has grown even more fierce as the internet has increased communications and brought together seemingly disparate places into a broader global market place. This unforeseen and somewhat unpredictable demand has ratcheted cost and margin pressures while also expanding businesses worldwide to a growing global middle class.

The typical breakdown of fashion retailers includes five groupings: fast fashion, value, luxury, traditional, and department stores. While supply chain requirements vary by channel and product, all retailers have to maintain a model that brings together an interconnected web of trading partners in order to best service customers – whose demands are only increasing.

With the advent of the digital consumer, we've seen sales channels revolutionized, with an increased need for speed and flexibility as customers now demand attention 24/7. No longer limited to brick-and-mortar store visits, customers are now considered “in the channel” at all times – making brand loyalty nearly obsolete when compared to a memorable shopping experience. Supply chains then need to adapt, and that's what the DHL fashion masterclass held in 2013 looked at. How does a retailer best cater to the digitally empowered consumer while still maintaining a lean supply chain?

This, along with other issues currently impacting retailers and their supply chain needs, are detailed further in the white paper, Fashion Unleashed: supply chain innovation is everything. To get a copy of the report, go to: http://supplychain.dhl.com/fashionagility2013.