On January 23, Boozt24 visited de Modefabriek, an important semi-annual event for the fashion industry. We were there to visit our customer MSBVR and of course to take a look at the many stands for the upcoming trends.
About de Modefabriek
De Modefabriek has been the largest fashion trade event in the Benelux since 1996. And now is the meetingpoint for the entire fashion community. To network, see and feel collections. People get inspired here and for many years this has been the best place to show your new collection to the buyers and even do business here directly.
Smart purchasing is more important than ever
Apart from the fact that the many exhibitors once again managed to put together beautiful collections this year, it is also clear that the fashion industry is currently facing various challenges.
After the pandemic and now the inflation that has an effect on consumer purchasing behaviour, it is more important than ever to purchase smartly. What do you buy and in what quantities. This is of course important in all industries, but even more so in the fashion industry. Wrong purchasing choices can leave you with a lot of unsaleable stock. In the fashion industry, it is therefore very important to properly determine what you need to purchase in order to achieve your desired turnover. What can help with this is a good NOOS (Never Out of Stock) collection, better known as the timeless classics. As a retailer, you don't need to have these in stock in large quantities, because they can always be ordered quickly from the manufacturer. But the manufacturer must also make the right choices in order not to be left with piles of unsaleable items. Trends do not always develop as planned.
Financial challenges in the fashion chain
In addition, all businesses in the fashion chain are faced with financial challenges and liquidity issues. The production of clothing is a costly affair and the payments of fashion houses often only take place after a long period of production. Factoring can offer a solution here. Factoring is a financing method in which a factoring company takes over the invoices from the fashion manufacturer or the agent and pays them immediately. The money is received quickly without having to wait for the payments from the fashion houses. One of the benefits of factoring is that it allows manufacturers to scale up their production for new collections and take on new projects, because they do not have to wait for payments for previous collections.
Another advantage of factoring is the protection against payment problems of fashion houses. If a fashion house gets into financial trouble, it can lead to payment delays. With factoring, the risk of non-payment by a debtor is taken over by the factoring company, giving manufacturers and agents less worry about payments from their customers. Factoring can therefore be an important instrument to guarantee growth and continuity.
Read here the case about MSBVR who are active in the fashion industry and how factoring helped them.
