How to manage cash flow

in an inventory-intensive fashion industry


Introducing our latest just-style industry paper “How to manage cash flow in an inventory-intensive fashion industry”

Time and time again a familiar scenario plays out across the apparel industry: Retailers and brands push more new products to consumers across multiple channels and different geographic regions in the hope of striking a sale – yet increasingly volatile and unpredictable demand means they often have to turn to markdowns and other promotions to shift high levels of unsold stock.

This all-too-common problem of rising inventories, falling sales and aggressive discounts erodes both merchandise margins and profitability. After all, it is a basic but often overlooked fact that every markdown to make a sale is less profit. But less well documented is that bloated inventories increase costs, trap capital and hamper cash flow at every step along the supply chain.

Indeed, some estimates suggest there is US$3 trillion of inventory tied up worldwide in the fashion supply chain and at retail.

Download our report “How to manage cash flow in an inventory-intensive fashion industry”

This industry report looks at the apparel industry inventory intensive model, and some of the things to consider, including:

  • The chain of added value
  • The inventory intensive model
    • Retailers
    • Wholesale brands
    • Manufacturers and weavers
  • Supply push versus demand pull
  • Multi-channel trading
  • Trends and potential strategies for brands and suppliers

Download our just-style industry report