Drapers’ Post

As part of the Drapers Retail Manifesto, we hear what suppliers want from the next government. Click below to read more and find out how to have your say. #generalelection #government #fashionsuppliers #supplychain #fashionretail

As part of the Drapers Retail Manifesto, we hear what suppliers want from the next government. Click below to read more and find out how to have your say. #generalelection #government #fashionsuppliers #supplychain #fashionretail

Unnecessary costs, time and road miles are being added to fashion retailers’ import operations because of inadequate port capacity and infrastructure, say critics. Drapers examines the “60/90 dilemma” and the causes and solutions proposed for this complex and historic issue. Click below to read insights from AllSaints, The Very Group and more. #imports #fashionretail #operations #ports #fashionnews

Unnecessary costs, time and road miles are being added to fashion retailers’ import operations because of inadequate port capacity and infrastructure, say critics. Drapers examines the “60/90 dilemma” and the causes and solutions proposed for this complex and historic issue. Click below to read insights from AllSaints, The Very Group and more. #imports #fashionretail #operations #ports #fashionnews

As fashion retail prepares for the peak trading period. We take a deep dive into the UK's vital ports. Unnecessary costs, time and road miles are being added to fashion retailers’ import operations because of inadequate port capacity and infrastructure, say critics. Drapers examines the “60/90 dilemma” and the causes and solutions proposed for this complex and historic issue. Read more here. #fashion #fashionnews #retail #retailnews

Unnecessary costs, time and road miles are being added to fashion retailers’ import operations because of inadequate port capacity and infrastructure, say critics. Drapers examines the “60/90 dilemma” and the causes and solutions proposed for this complex and historic issue. Read more by subscribing to Drapers below. #imports #fashionretail #operations #ports #fashionnews

Last week I posted an article about the "fast fashion" industry taking up a very large portion of airfreight for eCommerce shipments. They do this due to a rule that was created almost 90 years ago to stimulate global trade. "Introduced in 1938, the de minimis exception was intended to facilitate the flow of small packages valued at no more than $5, the equivalent of about $106 today. The threshold increased to $200 in 1994 and $800 in 2016." The rule allows one shipment, per person, per day, valued under $800 to enter the U.S. free of duty and taxes. A record 1 billion de minimis packages came into the US in 2023. it was 135 million in 2015. Fast Fashion companies SHEIN and Temu are more than 30% of this volume according to a report from the Federal Government. "On Thursday, a group of 40 lawmakers asked Homeland Security Secretary Alexander Mayorkas to crack down on the de minimis trade, which they said also facilitates the flow of deadly drugs like fentanyl into the U.S." A repeal of the rule could add an estimated $20-30 per shipment. So of course, not everyone is in favor of this. "The National Foreign Trade Council, whose members include major shippers such as FedEx, UPS and DHL as well as online retailers like Amazon and eBay, argue that restricting its use would make purchases more expensive for American consumers and small businesses. The cost of a $50 package would double, according to the council." #CSCCSCM #FastFashion #retail #ecommerce #aircargo #oceanfreight #fashion #supplychain #logistics #transportation #deminimis #drugtrafficking #customclearance

Is this the “new norm?” At some point, over the last few years, we have seen headlines that read, “Port Congestion…,” “Disruptions to Supply Chain,” and so on… 2024: Crisis in the Red Sea 2023: Labor Strike & Negotiations 2020 – 2022: COVID shutdowns, lack of staff, etc 2019: Surge in Imports due to US-China trade disputes First & Foremost: The continued attacks on shipping vessels along the Red Sea are a human issue. As it relates to retail – it’s a time and money issue. Retailers rerouting goods are seeing fees stack up because they are not able to use optimal shipping routes that are planned well in advance. With longer transit times, it disrupts the flow of processing when containers finally get to the ports causing a trickle-down effect. Goods are not getting where they need to be when they need to be there. Delay of goods does not only cost more on the service fee side, but missed opportunity is lost revenue. Either way, this ends up getting passed down to the customer in the form of increased costs. It's also important to note that while some industries may not be plagued by the seasonality of their products this especially hurts the apparel industry. Retail news is now reporting on retailers getting inventory inline; recovering from all the impacts of COVID (like Abercrombie & Fitch). If this crisis continues, we will start to see inventory back-up yet again. Missing a floor set date or a launch date by as little as 2 weeks to as much as 1 month+ has direct impact on margin. Retailers will have to start marking goods down to hit planned sell-thrus to make way for the new. It’s a vicious cycle that is hard to come out of. I’ve lived through it one too many times! One workaround for this is focusing on pieces that can be merchandised as capsule wardrobe pieces – less seasonality equals less liability. We know how I feel about that (not my favorite)! Anxiously waiting for further updates on the Red Sea crisis… What are some ways you are working around the increased transit times and getting creative with making the product you do have work harder? #redsea #crisis #supplychain #fashion #apparel #inventory #retail #capsulewardrobe Links in comments

Unnecessary costs, time and road miles are being added to fashion retailers’ import operations because of inadequate port capacity and infrastructure, say critics. Drapers examines the “60/90 dilemma” and the causes and solutions proposed for this complex and historic issue. Read more by subscribing to Drapers below. #imports #fashionretail #operations #ports #fashionnews

I love this conversation and analysis of what we can expect in a second Trump term as it relates to the fashion industry. So much is up in the air, but we have been here before so we do have an idea of what to expect. Goods across the board are about to get more expensive, the demand for luxury products will wane, and I believe we will start to see independent brands and retailers close and put folks out of work because the margins will become too difficult to attain and the cost of running a small business will get too high to sustain. Any tax break or incentive offered will not be enough to cover the higher costs and inflation inflicted on the industry due to increased tariffs. Of course, if there is one thing that is predictable about this administration, it's that it will be unpredictable. Thanks Amy Odell and Susan Scafidi for this conversation! #luxuryfashion #fashionindustry #retail