Reason 3:
like sizing and fabric translating
into late deliveries, late payments
Failing to embrace a myriad of which have a detrimental flow
available business, supply chain on affect across all levels of the
and retail technologies to achieve business.
new efficiencies and sources of
competitive advantage. (BDO In recent months, Ksubi certainly
ran into some trouble with their
Spend Trend Report 2013)
supply chain and the relationships
Australian businesses have not with their suppliers. “Bleach said
kept pace with technology to after failures in China, it had found
not only enhance customers a new offshore supply chain after
shopping experience at the front problems caused a delay in the
end of the business but also their production of Insight and Ksubi
planning and buying strategies clothing and accessories.”
on the back end of the business, Suppliers are no longer treated
constantly being outplayed by as partners in the supply
their international, early adopting, chain process and therefore
relationships suffer, impacting
tech-savvy competitors.
the bottom line.
Reason 4:
Not
prioritizing
working
capital for growth projects and
opportunities. Fashion epitomizes
growth, flux and change, why isn’t
this passion for growth reflected
in and driving financial planning
and investment into core areas
that would improve performance
and efficiencies of the business to
reduce costs.
Fact -Profit margin growth
increased by 2.7%, which came
down to retailers successfully
increasing their revenue without
impacting on their costs.
Fact -One of the highest recorded
losses to impact the industry lay
around Billabongs $750 million
write – off and -64.2% net profit
margins.
(BDO Spend Trend Report 2013)
Reason 5:
Supplier relationships, quality
and
competitive
pricing
are
being
tarnished
and
compromised resulting in a lack
of manufacturing consistencies
But having the same product, as
your neighbor in the shopping
centre isn’t going to create a stand
out proposition.
Fact -Consumers have a “growing
appetite” for in store shopping
(Columbia Business School
research), they want to touch, feel
and connect with the product.
Reason 7:
Inefficiencies in the Australian
Fashion industry are opening a
gap in the market for international
players who are integrating
technology, business resources
and harnessing trends to the
point of creating and reinventing
them. This aggressive approach
Reason 6:
towards creation and innovation
leaves others behind as mere
The home grown world of followers, and following has
fashion is constantly looking always been out of fashion.
over it’s shoulder to see what
competitors are offering both Reason 8:
locally and globally rather than
being at the forefront of design It defines a shortsighted and
and development and driving stubborn mentality to believe
innovative production strategies. that you can do it on your own
and driving innovative strategies. and not taking advantage of
objectivity that external eyes
bring to the business. A fear of
outside criticism and a decline
of operational control mean the
focus shifts to irrelevant and
frivolous details.
Knowing
what the
customer
wants and
being able
to deliver on
that through
brand and
customer
experience
is essential
Reason 9:
A void of passion and
disengagement or simply pure
“love for the job” has settled on the
industry, turning it into another
cogs and wheel enterprise, a
throwback to the factory days
of product-arket orientation.
m
Fashion is about something much
more intangible, special and even
celestial. It is much more than
factory floors and pricing policies.