Sharecloth released their “2018 Apparel Industry Overproduction Report” and illuminated some truly terrifying statistics plaguing the industry. Fast fashion has innovated the industry, but has also been one of the main contributors to why it may fail in the future. While the numbers presented below are alarming, incorporating advanced technology is the solution that the industry needs to stay afloat.
Fashion brands will see a profit reduction of $52 billion across the industry by 2030.
This will come from a combination of scarce resources, high labor costs and overproduction. If the industry can implement change while it’s still ahead and integrate technology like PLM-softwares (much like our Suuchi Grid) then industry leaders will be able to turn the tides.
The fashion market volume is $1.7 trillion. 12% of that is inventory distortion.
Inventory distortion is the combined cost of out-of-stocks and overstocks which even the top brands struggle with. This issue can be resolved by being able to track what resonates with your consumers in real time. Through technology, brands can see what styles resonate with their consumers and which ones had less demand. This allows them to know what products should have a higher order amount and which ones should be lower which will leads to less inventory distortion.
150 billion garments (20 pieces per person) are produced a year. 30% of it is never sold.
That means 45 billion garments are just adding to the environmental issues that the apparel industry contributes to. From wasted resources for production to wasted inventory filling up landfills. By using technology that helps you predict the needs of your customers, you can start with smaller batches and re-order as demand arises.
Over 50% of fast fashion is disposed in under one year.
While rapid speed-to-market has become the new standard, that means products tend to be of a lesser quality which means they lack staying power. Brands are wasting millions of dollars to get products out faster than the competition, but their products lack the ability to stay relevant. Incorporating technology into your supply chain can still provide you with hyper speed-to-market, but also allows you to track your products through every step of the process to plan for launches accordingly. Additionally, it allows you to hold your manufacturer accountable to provide you with the highest quality end product.
The fashion industry creates 92 millions tons of textile waste with 12.8 million tons of of clothing being sent to landfills a year.
As we’ve said before, we have to do our part in order to protect the planet. The damage that apparel brands and manufacturers are responsible for can be minimized if they take the accountability necessary. Technology can hold both parties responsible by creating a tangible trail of every material being used and follow the product from conception to sale.