Posts Tagged ‘Effective process’

Fashion on-Demand – What it means for Mass Market Apparel

Creativity and innovation have always been at the nucleus of the approximately $2.4 trillion fashion industry. Much like technology, fashion that rules is both dynamic and visionary. It’s no wonder, then, that the two are inextricably linked; that is, fashion and technology. From the very first sewing machine that paved the way for the textile revolution, to the growth of online retail that has led to massive shifts in fashion marketing and distribution, technology continues to influence the rapid transformation of fashion. Today, AI is being utilised to predict style trends and design clothes, and cutting and sewing are already automated. Moreover, virtual fitting rooms, as well as virtual alter egos (avatars) created for online fittings, are predicted to become more mainstream. In a very real sense, technology is automating fashion and shows no signs of stopping. Fashion on-demand Traditionally, the seasonal fashion groupings of spring/summer and autumn/winter practised since the Second World War have prevailed. The gradual rollout of what seasonal styles are predicted to be in demand gave brands ample time to produce the optimal number of clothes for each season. However, this is set to change. In fact, the change has already begun with the rise of fashion on-demand. This major shift sees products being “pulled” rather than “pushed” into the market by designers and buyers. Instead of relying on fashion forecasts or educated guesswork, custom-made production or personalisation is now a major trend, thanks to the help of digital technology. This has caused significant changes in the procurement, production, and distribution processes which were always based on predictions of future consumer demand. The “pull” fashion dynamic, then, implies that restocking inventory can only happen when all units are consumed. Pros and cons of on-demand production Of course, there are advantages and disadvantages to the on-demand production model. An upside of on-demand production is the lower capital outlay required, making it ideal for start-ups and small enterprises. It also means lower inventories, as well as greater adaptability and agility. Demand uncertainty is also reduced with shorter turnaround cycles, whilst also allowing for the adoption of a more sustainable small-batch production cycle. Conversely, however, smaller batch sizes can also mean higher production costs, as well as an increase in transport costs if it involves nearshore or offshore production. According to McKinsey’s State of Fashion 2019 survey report, “Sixty per cent of apparel procurement executives expect that over 20 per cent of their sourcing volume will be from nearshore by 2025.” Data analytics, automation, and the rise of microfactories Harnessing the power of automation and data analytics has allowed start-ups to easily adopt made-to-order production cycles. With major tech companies from CAD development working on digitising and partially automating production (including designing, cutting and sewing), companies can save time and manpower. As a result, producing even a batch size of one can become cost-efficient. So it certainly won’t take long for mass market players to take the cue, and follow a similar model. In fact, major players have already begun taking advantage of the power of advanced analytics to guide their planning decisions and production processes. And although apparel production automation is still at its nascent stages, the technology behind it is rapidly advancing, thereby indicating its huge potential. Examples of major companies that have begun adopting on-demand production include Adidas, Superdry, and Uniqlo. Adidas is one of a group of large brands that are showing signs of leveraging speed to shift towards on-demand. Aside from its Arkansas operation, it operates “Speedfactories” in Atlanta and Germany that together are expected to produce around a million pairs of running shoes a year by 2020, using digital design to enable mass customisation.[1] Superdry launched “Superdry Preview,” limited-edition collections that will go from design to delivery in just 6 weeks.[1] Uniqlo parent company Fast Retailing has signalled its intent to produce on-demand knitwear at scale through its partnership with Shima Seiki.119 Shima Seiki produces 3-D knitting and technology it labels “Wholegarment,” which produces seamless knitwear and requires no post-production labour, and anticipates that its tools and machines will enable “mass customisation.”[1] Microfactories also embody the revolutionary impact of on-demand production as they are capable of high-speed, agile garment production. They help speed up prototyping in design studios or on shop floors, as well as enable personalisation and waste reduction. The gradual adoption of innovation Although seemingly antithetical, what this heading means is that leading brands, unlike start-ups, are likely to embrace the principle of on-demand fashion gradually. The reason being that quickly adopting radical changes comes at a high cost, and creates disruptions in the current supply chain. What this means for retailers Automation can make nearshoring more attractive for mass-market appeal retailers and brands, but will also make onshoring more economically viable eventually – for specific products. Using the U.S. as an example, assuming that all key on-demand production technologies are available to all, Mexico would be more cost-competitive compared to going offshore to India or Bangladesh, for example. For Australia, China can remain a viable nearshore alternative whilst going onshore may become even more attractive as more advanced manufacturing technologies become more widespread. Someday, automation technology can make the production of both simple and complex garments less labour-intensive so that onshoring becomes almost inevitable. How to get started Based on the pattern of changes, mass apparel brands and retailers must begin to move toward a demand-focused value chain. To remain relevant, they need to be able to adopt automation technologies and prepare to satisfy consumers who desire personalised fashion. Strategic decision-making Company decisions on nearshoring and automation must be needs-based and must make financial sense. They must always consider the feasibility of nearshoring, as well as the commercial value of lead time reduction. They cannot blindly embrace automation. They should have a well-developed fact base to guide their strategy, and which they can refer to in planning for different product and design types. Essential skills and mindsets To successfully adapt to a demand-oriented supply chain, a consumer-focused and agile mindset is required. The challenge, then, lies in sourcing the right talent in digital or advanced manufacturing technology, and in making intelligent sourcing decisions. Key partnerships The need to have ties with global mega-suppliers to deliver massive manufacturing requirements remains. However, it would be essential for retailers and fashion brands to partner with tech companies specialising in the development of innovative automation solutions. The latter are better-placed to develop disruptive technologies that influence the fashion industry. The change starts now For apparel brands and retailers wanting to forge ahead, this is the time to make strategic changes in their business model. Nearshoring should be adopted as early as possible, even at the risk of slightly lower profits. They should also start collaborating with technology firms, as well as with manufacturers. They should already be identifying key engineering talent they can employ in-house as they prepare to lead the way in terms of nearshore manufacturing and automation. [1] Business of Fashion - The Year Ahead: Mass Market Goes On Demand

Read more →

Ecommerce is booming! (and with it packaging increases)

In 2018 alone, Australians spent a grand total of $28.6 billion ($20.3 billion USD) while shopping online. As of January of this year, this amounts to 9% of Australia's total retail sales.  All of this online shopping means that the amount of packaging is also on the rise. Further predictions by Statista show that Australia is on track for a huge leap in total revenue growth online, possibly by as much as 15.1%, which creates more and more packaging for you to deal with. While online shopping grows, so does its impact on the environment The number of packages and parcels each Australian receives per year is increasing. On average, Australian shoppers get 2.3 packages every year (and I know full well that I get more than this in books alone). This creates a unique problem that we have to deal with. How do you meet the consumer demand for "what I want, when I want it, and where I want it", without a massively detrimental impact on the environment? The overall goal is to meet this demand with minimal environmental impact, especially in terms of excess cardboard and plastic packaging and CO2 emissions. Adding to this problem is the fact that most retailers and eCommerce platforms haven't been able to master the art of packaging in a way that maximises customer convenience and sustainability. Taking, for example, China's record-setting Singles' Day sales; in the two minutes, five seconds after midnight on Singles' Day, Chinese buyers spent a collective ¥10 billion yuan ($2.07 billion AUD) through e-commerce giant Alibaba's various platforms. By the time the clock hit 1:47, sales were 10 times this amount. Alibaba closed Singles' Day with a sales total of ¥213.5 billion yuan ($42.5 billion AUD). While both Alibaba and competitor have pledged to use biodegradable packaging to cut down on waste, research conducted by Greenpeace East Asia said many plastics marked "biodegradable" and used by Chinese e-retailers could break down only under high temperatures in facilities that are limited in number across the country. Greenpeace estimated that by 2020, "biodegradable" packaging could produce roughly 721 truckloads of rubbish in China every day. As Australians are fast adopting international shopping behaviours, retailers here need to address and have a strategy in place to minimise the environmental impact. What packaging solutions are on the horizon? A key section of your product's journey is the "last mile" of the delivery process. This is the point where the package meets the buyer's doorstep; the most expensive part of the shipping process and for the customer, it is the often frustrating "out for delivery" stage that seems to go on for eternity. New technology is helping companies to explore a crowdsourcing approach to optimise the delivery process. Online retailers can partner with non-professional couriers to help them complete their deliveries. While this looks like it will speed up deliveries in urban areas, it requires refining to improve cost efficiencies. Drone tech is another exciting development that has been trialled in Canberra. It could help enhance the delivery process and potentially reducing the amount of packaging waste. However, an increase in drones will make our skies more crowded, contribute to noise pollution, and the results of the trials have raised concerns with citizens who relate that the noise has been invasive. The short clip showing the drones in action didn't look like it was reducing packaging but instead, increasing the amount of waste we're creating. Pre-cycling is another approach to packaging reduction. This involves removing a lot of the packaging waste, by selling products without any packaging, or, with a significantly reduced amount. This way, you won't have to worry about disposing of the packing correctly when you open your item. Less thinking about how to recycle it but a bit more effort in terms of remembering to take those empty containers to the store. What other ideas are there to reduce packaging whilst not compromising on the convenience of online shopping? We're thrilled to work with retailers who want to create seamless experiences for customers. 6R Retail has already had the pleasure of working with forward-thinking retailers on their omnichannel projects. This is an exciting time for both consumers and retailers, and we invite you along for the ride (drone and the driver-less car not included).

Read more →

Meeting meltdowns and 5 tips to avoid them

“Not all meetings are a waste of time, some of them get cancelled.” This is one of my dad’s favourites and definitely one that I can hear in the back of my head when I am in malfunctioning meeting. The numbers are not pretty: "In the US alone we “enjoy” 11 million formal business meetings each day and we waste $37 Billion in unnecessary meetings every year." The cost of meetings in the US is ridiculous and I am sure that Australia is not that far behind. See for yourself, have a go at this little tool – it’s one of the things that I have been known to wonder in a meeting – how much is this costing in peoples time? What else could these experts be doing if they were not in meetings? (Read more)

Read more →

How to… Sales Reporting

Have you heard of analysis paralysis? It's real and easy to fall prey to, but not if you keep in mind there are two key factors with reporting: Make it Rich in information Make it Actionable Consider as reports are developed and become part of the day to day in your business; what will I DO with this information? (Read more)

Read more →

The first fashion system decision; product, colour, size & fit?

Replacing systems is expensive and a lot of effort and hopefully it’s going to last you for a while. If you stuff it up, you’re either going to be forced to admit to a costly error and start all over again or you’ll have to live with the mistake every day using a system that just doesn’t fit your business. (Read more)

Read more →

Join Our Newsletter

Signup today for free and be the first to get notified on new updates.

And don’t worry, we hate spam too! You can unsubscribe at anytime.

Thanks for joining!
Designed by WRD © 6R Retail 2020