HONG KONG — The economic downturn has forced retailers to reevaluate how to utilize the role of the sourcing company, resulting in suppliers being under greater pressure to inject more value into the overall packages they deliver to boost their competitiveness.
Differentiation is becoming increasingly more important and, in line with this, there will be a marked shift in production focus from what sourcing firms call OEM, or original equipment manufacturing, into ODM, or original design manufacturing.
Bruce Rockowitz, president of global sourcing giant Li & Fung Ltd., stressed the importance for sourcing companies to offer “value-added services” and explained how the company already has begun to implement in-house design teams.
Rockowitz said manufacturers will have to increase investment in technologies such as automated equipment in production lines, advanced management systems and computerized systems for research and development in order to boost overall capabilities. There also will be a greater push toward connectivity. Li & Fung has developed a wireless system that gives all those involved in the supply chain access to real time information for improved efficiency.
Christina Ong, textiles and garments division director at HSBC, believes developing product design capability is essential to survive in the supply chain in the coming years. Bundling design and merchandising services will enable sourcing companies to attain higher profit margins and customer loyalty. This also helps fend off competition as buyers become dependent on the agent for product development.
New technologies now have become inextricably linked with sustainability. Ong said consumers are more aware of environmental matters and expect retailers to provide products manufactured by compliant factories and will have to look to reforming highly polluting and resource-consuming industries such as tanning, dyeing and electroplating.
“A few large sourcing companies maintain audit teams to assess manufacturers on behalf of buyers,” Ong said. “It is believed that achieving sustainable manufacturing will soon become an essential factor for vendors. Sourcing agents who introduce noncompliant vendors will likely suffer from serious reputational impact.”
But in order to ensure sustained growth, building a global reach is the key. Rockowitz cautioned that with the appreciating Chinese currency and ongoing changes in the export environment, companies that rely on China too much could suffer.
Esquel Group, a cotton shirt manufacturer servicing clients such as Hugo Boss and Abercrombie & Fitch, has conducted a number of pre-audits to review the company’s risk exposure levels to trade actions. Vice president and chief executive officer John Cheh said Esquel Group’s vast production network covering China, Hong Kong, Vietnam, Malaysia, Sri Lanka and Mauritius allows it the flexibility to move products from one location to another in the event of any sudden export changes.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia