The development of the concept of fast turnaround in recent years is both an opportunity and a headache for those involved in the clothing supply chain.

It is generally a consensus between the industry insiders that Uniqlo and Zara have done a great job with fast fashion and quick supplier turnaround. It is estimated that Uniqlo’s repeat orders are between 60-70% and Zara’s new products are released within 10 days. D&J have also conducted our own investigation into the operating methods of these brands and have found that the fast turnaround times of these two brands may be different than how they appear to the public.
 

Uniqlo has demonstrated strong research, planning and development capabilities in regards to fabrics and accessories. They develop, test and prepare fabrics around one year in advance. Most of their styles are basic, with large order volume. Uniqlo usually arrange for 30-40% of the first order to be produced and the rest of the order is made according to production capacity and retail performance. Uniqlo can also adjust the colours and sizes for the remainder of the order according to performance, as well as even adjusting the style slightly to create a new style. There are many similarities between Zara and Uniqlo which set them apart from many other brands in the fashion world. Zara also prepares materials in advance, especially for the basic styles which they produce in China.

The major difference between the two is that Zara does more style development than Uniqlo. Their product turnover relies on their strong development capabilities which means that suppliers are continuously fed new styles for conversion. This capability means that new styles are constantly presented to the market and that the supplier’s capability is taken advantage of.

In summarising the operating experiences of these two brands, they were found to have in common the following three aspects:

1- Preparation of fabric and other materials ahead of time allowing for fast repeat orders.

2- Strong planning capabilities to accurately manage and balance retail demand with supply chain production.

3-  These brands competency with these core points (Uniqlo’s advance planning and developments of fabrics and Zara’s impressive style development) is what allows them to achieve fast repeat ordering, high turnover and efficient operation of their supply chain.

As a clothing manufacturing company we often see that brands think the supplier is not providing them with high enough quality for low enough prices. Therefore they often try to find a supplier with better quality, lower prices and faster production times. The result is that even though the speed is getting faster and the prices cheaper, the quality is getting worse and worse and eventually this will price out the better suppliers who have a nice balance of cost, quality and efficiency.

Whether we, as a supplier, can achieve fast turnaround times and repeat orders is often out of our hands. It is the ability of clothing brand itself, the core of which is the ability of pre-planning and co-ordination, that will ensure the efficient operation of the supply chain and achieve the turnaround times they require.