How changing consumer preferences is redefining Sourcing and Fabric Merchant roles

Realization dawned that the fashion supply chain was gradually moving from a “push” to a “pull” model, where consumer preferences and buying behavior were dictating what inventory moved and what got stuck. Retailers started studying consumer preferences through sales patterns, trial-room feedback, returns and repeat purchases. Improving quality and quantity of data is now enabling the prediction of emerging trends. The entire process of forecasting better is now aided by digitization and draping, powered by AI. These insights can influence brand decisions around collections, production quantities and reorders, bringing an acute focus on quantity instead of on price.

MOQ is a standard abbreviation used every minute in the world of textiles. Minimum Order Quantity that was an after-thought detail, was in focus front and center. MOQ is what defined whether the supply chain will be left with surplus inventory or not. 

Instead of making large quantities upfront and then relying on discounts to clear products, a much better system emerges that allows businesses to test demand, produce in smaller batches, reorder what works and reduce what does not.

The above is a much better system but deprives large manufacturers of inherent advantages of economies of scale. Smaller batches and emphasis on variety catering to niche segment impacts mill efficiencies adversely. This is a present challenge and a future opportunity for whoever can invent a production model that is nimble and is able to pivot between varying MOQs without compromising on efficiencies. Robotics and automation will have a big role to play in setting up this playbook where limited capacities are put to work for longer. 

While the above complexities involving economics, geopolitics and AI play out, the fabric merchant like Roger La Viale, acts as the buffer betting on variety across fibers and technologies, stocking on a larger variety to try and cater to every niche, big or small. It is the merchants' job to absorb mill MOQs and make possible retailer dictated MOQs. It is the merchants' job to bet on risky fashion trends and enable them on time for the season.