Fashion Supply Chain Explained
The fashion supply chain starts with designs for the clothing or accessories to be manufactured, including specifications such as colors, fabrics, stitching, and fastenings (buttons, zips, Velcro, and so forth). When a manufacturer receives the specs, it sources the raw materials, develops a production plan, manufactures and assembles the goods, and distributes the finished products to warehouses. From there, the goods are shipped to retailers, for sale to customers online and in brick-and-mortar stores. Retailers typically also provide a customer service team to assist with questions and returns.
The global fashion industry generated more than US$1.5 trillion in revenue in 2022, according to Statista, with most of the manufacturing and production done in countries across Asia, due to their relatively low wages. Increasingly, customers in North America and Europe are demanding that fashion brands and retailers adhere to fair labor and environmental practices, pressuring the industry to evaluate suppliers based, in part, on those practices. Customers also want fashion brands and retailers to make that provenance information available on their websites, product packaging, and shelf labels.
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