According to a recent McKinsey study the fashion industry experiences the beginning of a significant change. Products are “pulled” into the market based on actual demand rather than being “pushed” based on forecasts. With this “pull” approach, procurement, production and sales are based on customer demand.
Specifically, this means an increase in just-in-time production and an increasing importance of small series. From an ecological point of view, this trend reversal has various positive effects. It contributes to a more sustainable production cycle for small series by reducing excess inventory. Clothing also experiences a certain degree of personalization through on-demand production. This in turn can mean an increase in appreciation, which may result in more conscious consumption and less waste. From an economic point of view, there are also positive aspects of on-demand production. It requires less capital investment and leads to reduced inventories and greater flexibility and agility.
Shorter lead times can reduce demand uncertainty. However, the production costs are usually higher due to the smaller lot sizes. However, it could be argued that clothing nowadays often costs too little anyway.
limo is working on being able to offer tailor-made clothing in the future. There is still a long way to go until then. However, you will already receive a piece of clothing made especially for you, since production only takes place after the order has been received. If you want to know more about limo's motivation and business model, read about limo here.