Apparel Industry Overview
Latest apparel industry analysis shows that the growth rate has dipped by 1.5% to 2%. Sky-high product turnover rates and thinning profit margins present major supply chain challenges for organizations. Added to that, continuously refreshing fast-fashion styles and changing consumer expectations further add to the woes of companies.
Business Challenges Faced
The client, a leading apparel company, was facing predicaments due to increasing sourcing costs. Changing tariffs and “protectionist trade policy agenda” in the U.S. was also posing major challenges for the client. The government’s idea to restore manufacturing and production compelled the company to transition away from China. Moreover, changing consumer expectations and fulfillment models were pressurizing the company to get huge volumes of ever-changing SKUs to market quickly. The client, therefore, decided to leverage SpendEdge’s expertise in conducting a comprehensive apparel industry analysis and devising effective supply chain strategies.
Key objectives the client aimed to achieve through this engagement were:
- Identify alternative sourcing locations.
- Devise productive supply chain strategies.
- Reduce the time taken from design to transit stores.
A comprehensive apparel industry analysis is imperative for companies to understand supply chain challenges and address compliance issues. Request a proposal to access our solution portfolio for free.Request Free Proposal
Our Research Approach
The detailed apparel industry analysis helped the client to find a new base other than China. They identified alternative sourcing options within the US to enhance speed to market and identify compliance risks. However, sourcing within the US was not a strategic option for the client as the production costs increased substantially. Therefore, the experts identified nations such as Vietnam and Bangladesh in which the costs were significantly lower. They also analyzed the apparel industry market size in both countries to help the client understand regulatory norms that they need to comply with.
Furthermore, to address the need for speed and agility, the experts examined their sourcing and logistics strategies. They analyzed key suppliers in the US market and identified potential suppliers who could ensure supply chain efficiency while dealing with volatility, uncertainty, and shifts in the global economy. The solution offered thus helped the client to centralize supply chain platform, gain a better understanding of end-to-end operations, and identify opportunities to run operations more efficiently. Also, SpendEdge’s apparel industry analysis helped the client to map their supply chain accurately to determine the best sourcing and transit strategies.
Want to know how our customized apparel industry analysis helped the client to redesign their supply chain strategies? Get in touch with our experts to gain detailed insights into the apparel industry market trends.Contact Us
SpendEdge’s customized apparel industry analysis helped the client to select Vietnam and Bangladesh as their alternative cost sourcing location. This helped them reduce production costs by 7% and save $16.6 million in the last quarter. Moreover, the revised supply chain strategies reduced the time taken from design to transit stores by 20 days.
Identifying suitable sourcing location and reducing time to market requires apparel industry analysis. Request a free demo from our experts to gain insights to mitigate supply market risks and increase apparel industry market share.