Just-in-time production: Why the latest fashion trend this season is more than a fad

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Faster fashion The news • Over overproduction. Fashion brands are rethinking the way they’ve previously produced and sold clothing in efforts to curtail overproduction—a pervasive industry problem that both undercuts profit and contributes massive amounts of waste to landfills. In efforts to move beyond traditional manufacturing models, some designers are testing on-demand clothing production: first selling their clothes, and then making them. [WSJ] • Digital clothing. With on-demand manufacturing in fashion on the rise, some luxury retailers are inviting consumers to preorder apparel, which lessens the risk of being stuck with excess inventory at season’s end. Preordering also allows retailers to work with emerging designers without having to shoulder the cost of physical stock. Some fashion houses are even making digital versions of their must-have styles available for preorder before any physical pieces even exist. [Vogue Business] Fashion is seeing the start of a seismic shift where products are “pulled” into the market based on actual demand rather than “pushed” based on best guesses and forecasts. Our insights • Why it matters. Clothing design and production usually take a long time: planning and moving products to market can take up to a year. Some start-ups have begun using technology, analytics, and nearshoring—moving operations closer—to quicken product development, shorten production timelines, and streamline distribution. • Made to measure. Start-ups are using automation and data analytics in their made-to-order production cycles, with the goals of just-in-time production, less overstock, and more targeted small-batch production cycles. Today, on-demand fashion is more relevant than ever as brands strive to catch up with consumers whose needs and wants have drastically shifted throughout the pandemic. For more on just-in-time production and other important fashion industry trends, check out our 2019 State of Fashion report. — Edited by Justine Jablonska    Get on trend Was this forwarded to you? Sign up here. Or send us feedback — we’d love to hear from you. Follow our thinking This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2021 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007