Speed Is the New Business Model of Fashion

Source : Pinterest

Source : Pinterest


Cowen & co has recently stated that fashion’s conventional supply chain model is no longer working and as an alternative they offered a new perspective : Speed = Value. They’ve stated that even modest change of speed can improve gross margin, a model which should be used across sectors and to clothing and accessories. Supply chain need to move faster in order to be more responsive to increasing changes in demand and they can achieve it by building a link between retail supply flexibility and market value.

If speed is the necessary catalyst of market value, according to Cowen & Co, two of the elements to achieve it is speed and social impact.


To achieve speed means to lower unpredictability, high forecast accuracy and neutral or negative working capital.  Brands do full price selling, replenishment at 90% or better and financial incentives shared across supplier partners. These metrics are not commonly measured, but this is to be on speed. Speed is not an operational challenge in sourcing but it is a firm-wide cultural commitment to speed decision-making, to be responsive to trends and to synchronise and share value across partners.

Social Impact

Millennial purchase decisions and loyalty are driven by demands for sustainability, transparency and zero waste. Cowen’s report states that retail’s financial status quo is unsustainable, and that the sector is desperate for a fresh strategic, investor and social narrative.

This generation do not separate value from product value and they’re out to change the business. Millennials are the employees and consumer and together, they are a social movement.