The Foundation Of Fashion Industry: From Supply Driven To Demand Driven

According to the world clothing shoes and hats net,

Retailers have begun to follow the consumer's digital footprint, but

The digital pformation of manufacturers is just beginning.

A global research report from McKinsey Germany has pointed out that today's fashion industry is changing from the original supply drive to demand driven. This situation has led many apparel purchasing executives to focus on the digital pformation of production and operation.

Digital pformation can not only keep pace with the times, but also better cope with the shrinking minimum order quantity and the changing trend.

McKinsey has investigated 63 executives who manage $135 billion in procurement funds. Among them, 83% said that the digitalization of clothing purchases in the future could accelerate decision-making, reduce production errors and better fit customers' positioning.

Achim Berg, a senior partner of McKinsey fashion consulting, said: "digitalization has great potential for development, such as shortening delivery time, etc.

In addition, advanced analytical methods can be used to select production locations, to reach technical cooperation with suppliers, or to create virtual prototypes.

McKinsey points out that most of the executives of the producers want to shorten the purchase time from 6 weeks to 4 weeks by digitalization.

"The past sports products industry, even relatively simple products, has a long lead time," said Colin Browne, director of brand supply chain.

We should speed up the process of digitalization and manage procurement time better.

The problem is that there is still a "big gap" between these companies' current actions and future expectations.

"End to end process management is a good example," said McKinsey. Over 80% of the procurement executives believe that this area will have the greatest impact on future development, but only 25% think their company has achieved a high degree of digitization in this field.

McKinsey points out that companies should invest early in integrating product lifecycle management software.

It is reported that the integration of product lifecycle management software can increase productivity to 10 times the current level.

PVH group European market and Tommy Hilfiger CFO Martijn Hagman acknowledged that PVH is trying to reduce the delivery time by process optimization and digitalization, but most of the tools needed are not yet in place.

Take 3D design technology as an example, this technology can provide services such as digital pattern, fitting and rendering, but there is no single program on the market that can manage these independent elements.

Automation is still one of the choices of buyers.

More than half of the purchasing executives said that by the year 2025, automation would exceed the cost considerations and become the key factor for them to choose sourcing sources.

Compared with traditional labor, automation technology can not only increase production speed and efficiency, but also promote a fast growing "near purchasing" trend -- getting garments from areas closer to the headquarters of fashion companies.

Saskia Hedrich, one of the co authors of McKinsey report, said: "one of every two executives agrees that in order to satisfy consumers' desire to buy goods faster, it will become more and more important."

However, the clothing industry has not (at least not yet) developed towards automation and local sourcing.

Colin Browne points out that in the next ten years or more, "it will be a mode of production in low cost countries with the help of AI technology and technology."

He also pointed out that the old mode of bargaining is no longer in existence. Now fashion companies want to reach a "complete and unified partnership" with suppliers.

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