The fashion industry is one of the fastest-growing, rapidly changing and most saturated environments in business. In fact, U.S. retail e-commerce revenue from the sale of fashion apparel, footwear and accessories is set to reach over $145 billion in 2024, which would be up almost 70% since 2019 according to Statista. In the era of social media and influencers, trends are moving faster than ever before, helping to drive growth as consumers want to stay in style. To navigate this complex environment and maintain flexible operations, businesses in the fashion industry should constantly evaluate three key elements of their sourcing operations: supplier relationships, supply chain contingency plans and offerings from e-commerce platforms.
Maintain strong relationships with sourcing partners
A business is only as good as the products it can deliver to consumers. To ensure that orders are met in a timely manner and the business is able to quickly adapt to new trends in the market, whether it is tapping into the resurrection of low-rise jeans or the return of earth tones for fall, strong supplier relationships are crucial. These strong relationships can help open the doors to sourcing options such as:
- Minimum order quantities and customization options
- Flexible pricing and payment options
- The ability to quickly identify and order new products to introduce to the market
Minimum order quantities and customization options are especially crucial in an industry that changes as fast as fashion because they allow business decision-makers to test out a new product in the market or sell limited-edition products. Overall, having access to these sourcing options by maintaining positive supplier relationships will ensure that businesses can efficiently pivot to new products when the market demands a change.
Develop contingency plans for shipping methods
Supply chain disruptions such as extreme weather events, port congestion and geopolitical issues have become commonplace, and business decision-makers are taking note. According to Alibaba.com data, fear of shipping delays is one of the top three reasons for hesitancy in adopting online global sourcing for 22% of businesses. Despite some hesitation, 66% of businesses are increasing their reliance on online global sourcing, highlighting the opportunity in the space.
To take advantage of what online global sourcing has to offer while mitigating the risks posed by supply chain disruptions, businesses should prioritize working with suppliers to develop contingency plans. By working with suppliers directly, businesses can ensure that all parties are prepared to execute a contingency plan and that key topics, such as cost, have already been discussed to avoid any major hiccups.
With contingency plans in place, fashion-based businesses can feel more confident that they will be able to keep up with the trends even in the face of roadblocks.
Leverage tools offered by B2B e-commerce platforms
As global B2B e-commerce has exploded, platforms supporting businesses in their sourcing needs have emerged as key allies to decision-makers. These platforms offer a variety of tools to help simplify global B2B sourcing, such as artificial intelligence search engines. In addition to the latest tools and technology, online B2B e-commerce platforms offer reassurances to business decision-makers, such as order guarantees and financial protections, through programs such as Alibaba.com’s Alibaba Guaranteed.
These tools and reassurances allow businesses to find the perfect product and begin sourcing with the peace of mind that the B2B e-commerce platforms have their back in the event of damaged orders, shipping delays or financial disputes. With those worries covered, business decision-makers can focus on keeping up with the times and delivering unique products to a demanding market.
Constantly evaluating sourcing operations is “in”
In an industry as fast-paced as fashion, one of the biggest challenges is avoiding going out of style. But how can business decision-makers ensure that their products keep flying off the shelves? Keeping close tabs on supplier relationships, contingency plans and the latest offerings from B2B e-commerce platforms can help businesses meet market demand and pivot to what’s “hot.” A “fit check,” or in this case an evaluation of sourcing operations, will help businesses and their consumers stay on trend.
