The effects of the downturn on the fashion and apparel industry
Even before the downturn, increasing customer requirements were putting pressure on the supply chain of fashion and apparel companies, instilling an urge to drive down lead-times, reduce the work capital in the value chain and improve forecast accuracy.
Growing consolidation and vertical integration led to both threats (increased purchasing power of retailers) and opportunities (increased margins throughout the value chain), while companies were also trying to expand in emerging markets. Maximising the margins through global sourcing while expanding geographically and vertically led to longer and more complex supply chains.
Now, with the downturn, fashion and apparel companies are vulnerable. Long lead times means that most companies are inflexible, not being able to adjust their sales and production to the current events until months from now. Also, the shift towards a greater importance of the e-commerce channel continues and increasingly price conscious customers will use price transparency and switch even more in their usage of the various sales channels.
How can you create a more competitive business model with shorter lead times? What strategies and tactics can help you to adapt faster to changing economic conditions, while maintaining margins and improving on time and in full delivery?
Deloitte is the ideal partner to help you navigate the downturn. Our industry expertise will be bundled to support you with an integrated approach to gain quick insight and to help you develop and execute a focused plan. Our integrated offering focuses on optimising your business portfolio, controlling costs, mitigating risks, optimising tax and improving cash flow and funding.
- We provide you with a complete analysis that assesses improvement opportunities within 2 to 4 weeks
- We are a one-stop trusted partner that has all the expertise you need: one team, many perspectives funneled to one vision, one complete overview
- We have the power to implement what we advise
If you would like to explore how Deloitte can help you navigate the downturn, please contact:
Mobile: +31 (0)6 20 25 20 88
Assistant: +31 20 582 53 13
Stefan de Kruijf
Mobile: +31 (0)6 12 01 14 59
Assistant: +31 20 454 70 20
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