How Fashion Brands Can Rely on Demand Sensing in the TikTok Era

 How Fashion Brands Can Rely on Demand Sensing in the TikTok Era

Clothing organizations that fail to plan can also plan to fail, especially during TikTok and Instagram.

The power of social media has never been more apparent to fashion brands, which, thanks to influencers, are selling things they really want faster than they can – inadvertently sending shoppers elsewhere.

For example, after TikTok went viral in 2021, Gap’s black brown logo hoodie (#gaphoodie), Aeropostale tops (#tinytops) and lululemon’s mid-rise skort (#lululemon) were quickly gone -stock-out when Gen Z-Y2K-fashion. Enthusiasts immediately take away these coveted things.

In the age of #fashionTikTok and influencer-driven viral purchases, clothing brands need to have the ability to accurately predict and proactively adjust their supply chains against drastic market fluctuations. . Doing this through demand sensing, a methodology and technology for improving future forecasts using detailed short-term demand data, will help them achieve service goals and customer expectations- or face Gen Z’s anger at buying like things elsewhere.

Below are the reasons why need recognition is essential to success as styles hit the 2022 runway – or, rather, TikTok “for your page.”

Why Conventional Supply Chains Can’t Sustain

Imagine how typical organizations with a traditional supply chain would react to high demand: An influencer posted a video wearing a TikTok skirt that created almost immediate excitement and “demand” to young women and teenagers for that product.

  • The brand demand forecast looks back at historic sales.
  • If sales reports show that the garments were sold unexpectedly, the company will go into bombing mode.
  • After adjusting its forecast to reflect new demand, the brand realized it lacked the materials and / or production capacity to produce more of this desired yarn.
  • The company orders new materials and pays for expensive expedited shipments, but the customer doesn’t wait and buy from a rival clothing brand.
  • The brand ends up with a surplus and a loss of money when the viralness of something disappears.

In this situation, which often happens in today’s social media scene, textile brands can never anticipate demand enough. Therefore, they do not successfully ask for a plan-i.e., forecast demand by analyzing historical data points to anticipate what is likely to happen in the future-and sales opportunities disappear.

However, in order to better accommodate the increasingly changing behavior of consumers, respond to strong product demand and identify new opportunities, companies may be wise to modernize their supply chain, especially with solutions that enable agile demand sensing capabilities in addition to planning strategies.

Facing the Future of Digital Solutions Adapting to the Changing Market

Savvy fashion brands always have a hurry-and-wait stance. They book materials and factory capacity to manufacture their garments, then wait until the last minute to figure out what they will do based on the latest demand identification. They asked, “What can I do? Where is the need? ” and “Where should the products go?”

For example, say that a brand’s demand forecast predicts that it will need 500,000 units of a particular style and color of a T-shirt in the United States. During production, however, its supply chain monitoring solution showed that demand in turn was rising in the UK and Germany – and less so in the US.

In such a scenario, the company may wait until the last minute to figure out the distribution-and may also find it more cost effective to ship directly to the consumer through the e-commerce channel.

Traditional retailers can look at their fast-paced counterparts as an example here. Instead of making multiple units of an item based primarily on past sales, fast -paced fashion leaders have always intended to create limited production flows so that once an item is sold, it is gone. , which enables them to sell most items at full price. After noticing how hot it is, they can now create new (sometimes very similar) designs and return them to stores in a week to two weeks as opposed to up to six months. Demand sensing allows them to stay more proactive and on the pulse of what consumers are looking for.

A clothing brand must request a plan to set the initial production parameters. Utilizing that read-and-react demand sensing capability is the way to fix the plan.

Proactive Sensing Capability Essential for Success

The reason is that, especially with today’s TikTok- and Instagram-loving Gen-Z shoppers, just looking at historical data doesn’t always work in the fashion industry. With the rise and fall of viral trends, brands must not only demand the plan but also remain vigilant in methods of demanding recognition.

A modern, digital supply chain demand sensing solution enables apparel companies to quickly pivot production and distribution to overcome business challenges and position themselves for the most sales. .

Undoubtedly, influencers have a heavy influence on the buying decisions of today’s fashion conscious. Therefore, in order to keep up with demand, the most successful clothing brands rely on their updated digital supply chain solution because it can be the key factor between failure to identify demand and success.

To get the same, follow and share from Gen Z, consider adding viral proofing strategies to your supply chain mix this year.

Mark Burstein is the executive vice presidentprincipal in the industry Logilitya provider of AI -based supply chain planning solutions.

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