The Ultimate Retail Competitive Advantage

Businesses used to talk about “time to market” as a measure of how long it took them to get a new product from drawing board to store shelf. Today that term has been updated as “speed to market” to reflect how critical it is for organizations to move products from design to testing to implementation as fast as possible. 

There are a number of reasons for this change in the fashion world. One is the advent of new technologies that allow consumers to shop anytime, anywhere. The fact that mobile devices put the entire fashion world at shoppers’ fingertips is clearly a game-changer. Within seconds of seeing the new look that someone is sporting, a seasoned surfer can determine if their favorite brand has something similar, and if not, can likely find many providers that do. 

Consumers today are speaking with their wallets and saying, “Move quickly or move aside!”

In other words, the stakes are high and the “need for speed ” is obvious. The industry is struggling mightily to keep up with changes in the market, including efforts to overhaul supply chains, better meet the demands of those who wield the most buying power, and adopt new technology. 

Why Speed to Market Matters

Few would argue with the statement that speed to market is important. But where, specifically, does it come into play? Some of the benefits of accelerating development and production include:

• Customer acquisition. As noted above, if a certain look or style starts trending and your competitor launches their version before you launch yours, they cash in throughout the lag period. Plus, the added benefit of initial purchases is that they can lead to repeat business, which you also miss out on.
• Innovation. The sooner a company gets a product to market, the sooner they can gauge and learn from consumer reaction, and update their offering to capture even more market share.
• Reputation. As any retailer knows, in many purchase scenarios, the reputation of the provider is as important as – if not more important than – the particulars of the product. Your reputation as an innovator and industry leader can have a very positive impact on annual sales.

Made in the USA: Why Manufacturing at Home Can Increase Speed 

When companies began looking for ways to cut labor costs many decades ago, and cheap offshore labor was identified as an effective strategy, apparel manufacturing was one of the first industries to head overseas. Initially the tactic was a success in this labor-intensive industry, and the exodus continued unimpeded. 

While stretching the supply chain extended time to market to months, consumers seemed content to endure the wait. In fact, for technical products, utilizing overseas labor can result in a design/test/launch process that takes over a year. While that delay may have been good for creating a sense of anticipation, it certainly wasn’t driving sales in the interim.

A simpler supply chain

Recently, however, a new trend is emerging. Apparel makers have begun “onshoring” work, and it’s a movement that seems to be picking up speed. Why? There are many reasons, including that companies that manufacture their products in the U.S. are: 

• More responsive. With design and production teams working closely and collaboratively on new products, apparel makers are more flexible and better able to respond to changing fashion trends.
• Better able to meet demand. When a new design creates a buzz, companies that have repatriated their production processes can more easily keep up with soaring customer demand.
• Better positioned to mitigate risks. Clothing companies that ship work overseas face a number of challenges including counterfeits, quality issues, and intellectual property theft. Bringing work back to the U.S. minimizes these problems.
• Protected against unethical workforce practices. Low-cost overseas labor sometimes comes with even lower regard for worker rights. Having manufacturing operations in the U.S. helps protect companies from being unwitting accomplices in unethical business practices.

Consumer Reports noted that nearly 80 percent of American consumers indicate they would rather buy an American-made product than an imported one.

Countering rising shipping costs 

Another benefit for clothing companies of onshoring their manufacturing is that it helps them address rising shipping costs. The expense of shipping merchandise around the U.S. is significantly less than bringing it in from overseas. What’s more, it reduces the risk of shipping delays as a continuing transportation capacity crunch affects the industry.

Providers like Darlington Fabrics that facilitate all freight requirements for customers are finding themselves to be even more attractive to business partners. The ability to ensure timely delivery and provide cost savings is a significant benefit. 

Staying in Sync with Changing Consumer Behavior

By focusing on speed to market, apparel makers are able to keep up with rapidly evolving consumer behavior. For example, “fast fashion” is a term that refers to the expectation that clothing from the catwalk will be available to consumers very quickly and at a reasonable price point. Optimizing certain sections of the supply chain has allowed retailers to meet this expectation with stylish yet affordable clothing for the mainstream market. 

Another force affecting the fashion industry is the rise of the millennials and the cohort that follows them, Gen Z. It is estimated that these two groups will make up approximately 70 percent of the world population by 2028. These consumers are digitally fluent and very price-aware when making purchase decisions. 

They, and other consumers, are also showing a growing tendency to buy American, which is powering a renaissance in U.S. manufacturing. Consumer Reports noted that nearly 80 percent of American consumers indicate they would rather buy an American-made product than an imported one. In fact, more than 60 percent say they would pay as much as 10 percent more for it. 

And, of course, the trend toward online shopping continues. From retailer websites to social media platforms like Instagram and Facebook, consumers are increasingly inclined to shop from home or from anywhere other than a store using their mobile device. Millennials are driving this trend, with over a third having purchased from a brand they learned about on Facebook or Instagram. The result is that mobile commerce has grown from 4 percent of total digital commerce dollars in 2010 to 23 percent in 2017. 

The message to companies in the fashion industry is clear: the need for speed to market is greater than ever before. Consumers today are speaking with their wallets and saying, “Move quickly or move aside!”