In the blink of an eye, from a new solution to minimize overproduction, which fashion brands felt was elusive, on-demand manufacturing has become a trend brands cannot miss. Just 5 years short, how and why can it form the fashion industry's future?
The Origin Of On-Demand Manufacturing
No one knows exactly when and how on-demand manufacturing was formed but some believe it originated in 1950-60s Japan, with Toyota using it to reduce waste and boost efficiency. At that time, they called it Just-in-time manufacturing (JIT). The success of this experimental production inspired other companies to adopt and rapidly expand into other industries, including fashion.
Toyota Motor Plant in the 1950s
The Growth Of On-Demand Manufacturing In The Fashion Industry
Fashion in 2019: A year of awakening
As for the fashion industry, On-demand manufacturing was (actually) booming in the post-pandemic. Here’s why:
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As consumer spending patterns shifted and lockdowns forced store closures, fashion brands were left with large quantities of unsold items, which were caused by traditional bulk manufacturing.
“The pandemic’s effects on retail, and the increased attention on the environmental costs of overproduction, have put more wind in the company’s sails. From a retailer standpoint, it was a hard sell at the beginning of 2020.” - Celeste Markey, CEO of Careste, a luxury clothing brand using an on-demand, “zero-inventory” model, shared with Vogue.
UNIQLO stores closed during the COVID-19 pandemic.
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And not to mention the trend-changing due to lockdowns. People were forced to stay and work from home, meaning they did not need to dress in business wear or formally; instead, casual dress became the norm: formalwear to loungewear, suit to pajamas, heels to flip-flops, you name it.
“Eight months into it, we were basically having retailers throw themselves at us. Covid has been such a slap in the face. Who could have predicted that we’d all be buying sweatpants?” - Celeste said.
The overstocking issue highlighted the broader challenge of overproduction in the fashion industry. The traditional model of producing large batches of clothing based on forecasts often led to unsold items, even before the pandemic. That’s why when the pandemic hit, the flaws of the traditional system were easily exposed, as brands could not adjust their production quickly enough to match the changing demand.
How fashion brands solved overstocking and heading towards the New Normal
Facing mountains of deadstock, brands normally dealt with this by:
- Discount Sales: slashing prices in outlets and clearance events.
- Bulk Offloading: selling excess inventory to non-competitive markets.
- Donate to charities: a well-intentioned, but resource-intensive solution.
- Unsustainable Disposal: while rarely admitted, some resorted to destruction.
While this is considered financial and material resources wasted, the pandemic forced brands to seek a more flexible approach. In response, many new approaches emerged including mass customization, limited collections, and yes, on-demand manufacturing.
On-demand manufacturing isn't just a trend; it's a revolution. Instead of producing large batches, brands can reduce waste and money by making smaller batches. It allows them to catch up on trends easily, experiment with new designs, and offer limited editions.
Read more: How On-Demand Manufacturing Lets Your Brand Capitalize on Trends Before They're Yesterday's News
Even though on-demand manufacturing sounds ideal and promising during the New Normal, it was still just a new concept that brands were hesitant to adopt on a larger scale, but the potential for a more efficient and sustainable future remains undeniable.
Rolling on to 2024, do fashion brands finally adopt “on-demand manufacturing”?
5 years later, scaling production for high-demand items is still a challenge with on-demand. Not to mention that integrating new processes with existing workflows requires lots of adjustments and not all brands are comfortable doing it. On the other hand, as consumers are gradually increasing interest in sustainability and ethical production, combined with technological advancements streamlining on-demand processes, some fashion players are finally taking a jump, typically Shein, Cider, Pomelo, Love Bonito, H&M, etc.
Read more:
Shein and On-Demand Manufacturing: Revolutionizing the Fast Fashion Industry
The Cider Success Story in On-Demand Fashion
In conclusion, in 2024, on-demand manufacturing is not yet the norm, but it's a growing trend with a bright future. It's revolutionizing the industry for those who embrace it.
Considering on-demand now? Let Inflow guide you through!
Fashion is always changing, consumers crave personalization, brands struggle to catch up with trends, and the planet demands a shift. That’s why production will always be a challenge for every fashion brand’s manager, whether you’re a pro or a new player in this field. Don’t let the outdated model hold you back from creating your dream collection, join the Inflow revolution with on-demand apparel manufacturing, where innovation meets sustainability.
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End-to-end services: no more manufacturing mazes, endless searches, and guesswork, Inflow provides A-Z services from design, sourcing, sample-making, mass production, and quality control to shipping.
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Small-batch ordering: produce what sells, not landfill fill. Small order quantities not only allow brands to lower costs and production times but also elevate product launches with market testing.
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AI-driven product development experience: leverage data-driven insights and SKU performance data from leading e-commerce platforms, social media, and your own sales channels to unveil hidden trends, consumer needs, etc.
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Eco-conscious by design: minimize your environmental impact with our commitment to sustainable practices and potentially recycled or low-impact materials.
Get in touch with Inflow today and tailor your dream-come-true collection!