It seems like forever ago that COVID-19-related supply issues started, but there’s no sign of them stopping anytime soon. Throw in high-interest rates, inflation, poor growth, and climate change, and you have a supply chain that’s forced to adapt for the sake of the fashion industry.

The 5 Supply Trends Shaking Up the Fashion Industry in 2023

Apparel industry sales are in decline at the beginning of Q4 due to a series of unfortunate events. As of now, these events have turned into trends that will redefine fashion in 2023.

1. Technology Investments Accelerating

In 2023, the fashion industry will invest more in cloud-based solutions to tackle inflations and economic stagnation. While the focus was initially on the back end, businesses will look more at supply chain and operational capabilities, planning maturity, and warehouse automation.

There’s a high possibility they’ll look to commercial real estate tools, like Northspyre, to address warehouse shortages. Project management and intelligent data tool Northspyre can make it easier for teams to build retail stores from scratch or out of abandoned warehouses.

2. Creating a Secure Supply Network

The two biggest things impacting the supply chain are the Russia-Ukraine War and Pakistan floods. The unknowns of conflicts are affecting the entire apparel supply chain, and factories were hit due to the destruction of Pakistani cotton crops (and Texas crops due to drought).

It’s a challenging time, and it’s only going to get worse. Retailers need to understand the impact of geopolitical tensions, consider how to leverage friendshorting, and change their products in case an issue occurs again. The fashion industry must work on securing its supply networks.

3. Supply Chains are Rapidly Morphing

While it’s easier to get retail goods into the hands of customers, the state of supply chains is still causing panic. Even if the supply chain goes back to some semblance of normal, it’ll be more expensive to ship and/or access goods. There’s no telling when it’ll get less expensive.

For many retailers, it’s cheaper to get their supplies locally. If you think about how many customers they could lose if they fulfil orders late, then opting for local fulfilment is a no-brainer.

The fashion industry has to learn how to compete with other suppliers who can make and deliver orders quickly while also finding ways to impress their demanding customers. This requires omnichannel fulfilment and control tower visibility in a predictive environment.

4. Switching to Eco-Friendly Stability

It’s no secret that climate change is causing the bulk of supply chain issues. Droughts and floods are affecting crops, harsh winter and summer storms prevent travel by air and sea, and non-renewable resources are polluting the planet. The fashion industry can’t contribute to this.

When they do, they aren’t just making the problem worse for themselves; they’re also affecting the Earth and the people who inhabit it. All companies must dedicate more resources to sustainability, which includes investing in education, finding respectable vendors, and sourcing responsibly.

5. Human Rights and Labour Concerns

Many fashion giants open factories in countries where labour is cheap, but these practices aren’t without their consequences. Poor conditions and low wages affect workers’ quality of life. These workers also have limited access to healthcare, education, and safe living conditions.

Slow fashion isn’t just sustainable; it’s positive for human existence. When conditions are poor, so is the quality of work, and supply issues inevitably arise when productivity is lowered.

Retailers won’t solve the supply chain problem if they invest in the fast fashion movement. Not only that, but their reputation will take a hit as climate change becomes a more terrifying threat. Pulling out of these countries will improve labour laws and improve the global supply chain.