As sustainability gradually became a pressing concern for fashion brands, microfactories emerged as an answer to minimize the severe impact of traditional mass production on Mother Earth. Along with on-demand manufacturing, can microfactories change the fashion industry's future? Let’s find out!
What Is A Microfactory?
There are a lot of definitions around this term. In short, a microfactory is a small-scale, high-tech manufacturing facility that helps create a more efficient and adaptable manufacturing model.
The war between Micro Vs. Macro
Every production model has pros and cons. So, before jumping to a conclusion which model will reign supreme? Let’s dive into the 4 key differences between standard factories and microfactories to see which might be a better fit for the fashion industry’s ever-changing needs.
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Production Volume
Following a design-make-sell model in fashion, a standard factory could have minimums in hundreds to thousands, aiming to meet mass market demand along with a lead time expands from at least 3 months. On the other hand, microfactory brings a new concept to the table, which is design-sell-make. By accepting flexible MOQs, microfactories focus on small-batch production with shorter lead times (maybe in just hours), allowing for more flexibility and customization.
“In big business, the biggest inefficiency is lead time. We’re working really far ahead, and we’re also committed to producing so much product at such high minimums. Sometimes it’s better to buy 1,500 units to get a better price and mark half of it down than it is to buy the 500 that you need,” says sustainable fashion consultant Natalie Binns.
2. Agility and Speed:
As mentioned above, due to large production runs and complex logistics, a standard factory can be slow when talking about trend-changing adaptation. While microfactory can overcome this disadvantage, allowing brands to have quicker responses to market shifts by offering faster turnaround times thanks to smaller batches and streamlined processes.
“One of the key benefits for us is the ability to adapt quickly to changing market demands and produce smaller batches of products economically.” - Kasper Juhl Todbjerg, the co-founder of Rodinia client Isnurh, praises the flexibility the microfactory offers, as well as the transparency of being able to cycle from the brand’s Copenhagen HQ to the Rodinia site to watch how the collections are made.
The Top Fall 2024 Fashion Trends: Designers See the World Through a Soft-Focus Lens. Cre: Vogue
3. Technology and Automation
The automation levels of a standard factory depend on the industry and product complexity. However, bulk production often requires a significant human workforce to handle tasks such as material handling, quality control, machine operation, etc. They may utilize some advanced technologies, like assembly lines or computer-aided design (CAD) but the main focus still be more on managing large-scale operations and maintaining equipment.
Read more: What is a CAD System and Its Application in the Garment & Fashion Industry?
Quite the opposite, microfactories are all about automation and technology-driven, low-impact manufacturing methods such as robots, AGVs, waterless digital printing, 3D weaving, and other high-tech tools handling tasks. That’s why microfactories can reduce labor costs and operate with a smaller, highly skilled workforce.
Read more: Power Of AI In Fashion Manufacturing
3D printing is the new way to manufacture on-demand. Cre: London’s Fashtech Innovation Center
4. Environmental Impact:
With the eco-conscious being raised powerfully, everyone knows how standard factories affect the environment and give microfactories some preeminent part. By utilizing scaled-down machinery to produce smaller batches of highly customizable goods, microfactories emphasize on-demand manufacturing - a key factor in minimizing production's footprint: less waste, shorter transport, and reduced resource consumption (chemicals and water).
As microfactories’s agility helps brands cater easily to niche markets with diverse, custom products and may disrupt a part of the traditional model, but is it a one-size-fits-all solution when it comes to production needs? Continue to explore the potential of microfactories as well as why large-scale factories remain crucial in the fashion industry.
Potentials and Challenges of Microfactories
Microfactories may bring a lot of promises to the future of the fashion industry, but as the comparison shows, quite a few challenges are lurking beneath the sleek exterior. There are 3 main obstacles that microfactories will face on a larger scale:
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Price Competition
Focus on the design-sell-make model, microfactories are not designed for mass production. Therefore, the cost per unit produced in a microfactory might be higher compared to bulk production. Despite this drawback, Trine Young, CEO and founder of Rodinia Generation - a Danish supply chain startup in Copenhagen, sees the cost potential in microfactories and shares some valuable insights in her interview with Vogue Business, “Are microfactories the answer to making fashion on demand?”.
“It still can’t compete on price with very basic, cheap-to-make products like plain cotton T-shirts (in fact, Young says block colors, in general, aren’t suited to the technology because it wouldn’t be economical to print a full piece of cloth). However, once pattern and print are involved, that’s where brands will start to see savings on what Young calls “shadow costs”, such as import, shipping, and warehousing.”
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Supply Chain Reliance
Microfactories often rely on a network of suppliers for materials and components. Any disruptions in the supply chain can impact production. Even though there are a few potential solutions to this problem, such as local sourcing, building strong relationships with key suppliers, just-in-time inventory management, diversifying suppliers, etc.
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Maintain Environmental Friendliness
Although microfactory has shown their strength in preserving the environment, Vogue Business’s experts spoke to agree that the limitations of microfactories mean they cannot replace the wholesale operations of traditional factories, nor can they simply plug into the fashion industry in its current guise if they are to have a meaningful impact.
“If we don’t reduce the amount of products the fashion industry is producing, it’s useless,” says Philipp Meister, global fashion and sporting goods lead at Quantis.
In conclusion,
Microfactories offer a compelling vision for the future of fashion: agile, sustainable, and responsive to evolving consumer demands. Their ability is more than enough to cover the needs of small to medium-sized brands.
However, it's important to recognize their limitations. Microfactories may not be the correct answer for brands that are reliant on high-volume, low-cost production. Traditional large-scale factories will likely remain crucial for meeting mass market demand.
To be certain, traditional manufacturing isn’t going anywhere, but small-scale manufacturing is also just getting better, smarter, and more efficient at specific types of creation. Maybe shortly, an extended network of microfactories with different specialties will also be crucial to enabling brands to adopt the on-demand manufacturing model throughout their product range.