Why Garment Factories Should Enter the Retail Business - Part 1

Why Garment Factories Should Enter the Retail Business—Part 1

Purchasing and manufacturing are not enough to fuel the growth of garment companies and the industry. Emma Birnbaum, the author of the article, titled the first part of the article as “Why should factories become retailers?”

It is reported that the topics of the articles revolve around the continued and inevitable downturn faced by the development of the industry, including struggling retailers and ambitious but at a loss. manufacturer.

Although it is relatively easy to find the core problems and shortcomings, as many people, including myself, endlessly move forward, constructing a feasible future operation for the industry The strategies and modes are quite difficult. It is even more difficult to find someone who is not afraid to take risks and try to launch a new project in unknown territory.

At this point, it seems far-fetched to develop practical, cost-effective and comprehensive solutions, considering not only those that are prevalent in the garment industry but also Problems spreading internally, such as globalization and the Internet, and the consumer side has been divided into domestic, transnational, international and other multiple niche markets.

So not only is the answer not a one-size-fits-all model, blindly imitating and following what others are doing may inhibit your potential for growth. This creates an unclear situation for the industry, which uses non-avant-garde means to prove cutting-edge technologies, processes and immature concepts. Here we suggest that the industry should comprehensively reinvent itself under a variety of different models.

Understandably, few are willing to take risks, especially given the isolation and ambiguity of individual combat operations. This has left the industry in dire straits.

Not only are problems common in the garment industry have spread within the industry, such as globalization and the Internet, but the consumer side has been divided into domestic, transnational, international and other multiple interests. base market.

People often want to move forward but choose between maintaining the status quo, falling into self-contradiction. It is understood that the only way to succeed is to produce products that consumers want to buy. We also found that the daily statistics of the consumer population are still changing. As a result, the segmentation of consumer groups is becoming increasingly unclear, and most of them will not update their usual ways of doing things.

Subsequent supply chain entities are trying to overhaul their industry, but are unable to control or significantly influence their counterparts – the retailers.

In general, since retailers have little in-depth understanding and analysis of consumer data and feedback on products, retail prices, marketing, distribution, etc., any modern Research methods will limit industry operators, and they will ultimately be unable to control the beginning and end of the product life cycle.

Supply chain entities cannot influence the front end of operations. They are limited to adding and upgrading the tools they already have at their disposal, and more specifically, the tools currently used by consumers. . Basically, through a diversified combination of technologies, technology and process upgrades can be created.

Short-sightedness and following the trend often cause people to be too invested in technology and innovation, leading people to invest in expensive systems and hardware, whose value has not been proven in the short term.

˙How many consumers want personalized shoes/dresses/bicycle equipment, etc.?

˙Is delivery service (same day, next day or next day delivery) necessary for all product categories?

˙The size of the fast fashion consumer population means that if there are other feasible alternatives, will everyone only shop at Zara?

˙How many people prefer shopping on Amazon to other retail interfaces?

Many of the assumptions that guide the development of new retailers, factories, suppliers, and corporate relationships are based on extreme responses that do not come from Some examples of successful management in specific industries using very specific strategies, or/or the depressing reality that entire popular high street brands are failing catastrophically.

Everyone is looking for the next big thing, but few people seem to realize that the “White Knight” has left home

Meanwhile, supply chain entities are waiting for the next retail giant they can trust and rely on. Everyone longs for a return to the pre-Internet era, when big orders were decided by reliable customers. However, not only are there not enough customers to meet everyone’s needs, but no one seems to be willing to write off these bad debts.

To be sure, there are some important emerging online retailers, such as Asos, Alibaba, and Amazon. These companies are dominating the global market. But the business models of these companies have nothing to do with the business models of their predecessors.

In fact, when it comes to ethics, delivery times and order quantities, they hope to have more in common with the new brand than they did in 1980 Big-name retailers Gap, Liz Claibourne, and Abercrombie & Fitch in the 1990s and 1990s.

When dealing with an uncertain future, it’s understandable that there’s nostalgia for the prosperity of the past. It’s a conundrum that, while consumers have more purchasing power than ever before, some major brands are closing their doors (or at least Those clients are not funded by investment banks). Everyone is looking for the next big thing, but few people seem to realize that “White Knight” (White vKnight) has left home. (Note: “White Knight” (White Knight) refers to a company The company rescues companies in financial crisis from hostile takeovers)

Customers are no longer king

We all understand the general theme of the new world order. There is also a recognition that consumers are taking over and the tools for transactions are constantly evolving.

But the supply chain entities of customers and factories remain the same. Yes, in some cases, fully transparent emerging partnerships will be based on established trust. In these cases, Change is seen as one of equal importance, with both being integral parts of the process. However, is this actually true even in the best of partnerships?

Today’s leading cutting-edge factories provide advanced auxiliary design, product development, material and auxiliary material procurement, rapid operation manufacturing and direct-to-consumer distribution. Not to mention even for new technologies, materials, and processes and internal innovation of value creation research methods (such as sustainability and blockchain implementation).

What are the work projects that “Cutting Edge” clients are responsible for? Design concepts, Marketing and sales. Basically, the daily routine of a 16-year-old Instagram star or social influencer does not involve middle managers, accounting teams, greedy investors, and a bunch of expensive senior management.

Not only is the customer no longer king: let’s face it, it’s obsolete.

So, if you are a manufacturer with a strong personality, quick thinking, technology introduction, and fashion (non-commodity), and you are tired of the current production order (Manufacturing Order, MO) in this industry, what is your best option?

Go straight to retail

It may seem easy compared to what you know.

The problem is:

I see you have doubts! I know you don’t want to talk about it because you foresee serious problems.

(1) Competing with existing customers is never a good thing.

(2) The price is expensive and you may have to give up some orders.

(3) Lack of professional knowledge is an obstacle to the success of any new venture.

(4) Entering the unknown world is frightening and often leads to destruction.

Let’s break down these valid questions.

(1) Do you need to let your customers know that you are the boss behind an emerging fashion brand? While anonymity is not a prerequisite, there is no need to promote your new endeavor in the fashion business.

(2) Going out on your own is a risky thing. Any industry based on satisfying consumers’ fickle desires rather than needs is always going to be difficult to predict. But I think we can all agree that success is about more than sustaining it, it’s about the ability to scale and make millions, if not billions, of dollars. Now ask yourself, do you envision your business thriving? Or would you be better off investing in your own business than dealing with unpredictable and undisciplined clients? Honestly, it’s probably not you. You may have a thriving business, steady growth, and a large, consistent, and legitimate customer base. If that’s the case, just go ahead! You’re doing a great job. For others, it’s time to throw out the old rules. It is not enough to update your research methods if the basic pattern remains the same: designer-customer-factory-consumer. Even if entities are equal and roles are assigned responsibly, old rules are difficult to change. In other industries, relying entirely on someone else’s success to propel you forward is a disastrous business model, especially if that person doesn’t benefit from promoting you through other potential customers.

(3) Don’t be too harsh, but if you don’t understand, hire someone smarter than you. It’s called delegation.

(4) Finally, fear of failure becomes the biggest obstacle. No matter what, you want to avoid destroying what you have spent years, decades, or generations building. Thankfully, fear of failure is mostly an emotional gut reaction rather than an indication of future outcomes. You don’t suddenly stop being a good business person just because you change your tactics. Achieving long-term popularity often, if not always, requires an upgrade strategy to accompany it.

The good news is that if you continue reading “Part Two”, you will find that the author does not mention and restructure your business. Rather, it depends on what you have and the add-ons you add, many of which you may already be doing.

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