Direct Sales Model Could Help Fashion Brands Enhance Sustainability

The recipient of a bachelor's in business management from National Louis University, Rabia Farhang is an experienced fashion entrepreneur who founded BGood Collective in 2019. Through this company, Rabia Farhang works with fashion brands to enhance their social impact through sustainability initiatives.

The COVID-19 pandemic has negatively affected businesses worldwide, and fashion brands are no different. It has also forced many small fashion businesses to rethink the viability of the wholesale model and instead implement a more sustainable direct sales approach. In a story for Vogue Business, designer Mara Hoffman spoke about the lack of power she feels her brand has in regard to its arrangement with retailers and how the pandemic has exacerbated this concern.

Order cancellations have been the biggest problem, which, in turn, create excessive waste. Other brands have had retailers accept orders and fail to pay or add additional fees if the products aren't delivered on time, despite the production challenges brought about by the pandemic.

Relationships with retailers are still important from a marketing perspective, but brands are increasingly becoming aware of the sustainability and cost benefits of the direct sales model. To that end, several prominent designers and executives put forth a petition on May 12 calling for a deceleration of production in the industry and for more transparency in partnerships with retailers.

 

Pandemic Driving Shift to Sustainable Fashion

The recipient of a bachelor of science in business management from National Louis University, Rabia Farhang is a seasoned sustainability consultant who has worked with multiple retail and fashion brands throughout her career. As the founder of bgood collective in New York, Rabia Farhang draws on this experience to help small businesses and nonprofits implement sustainable initiatives. The fashion industry has placed increased emphasis on sustainability in recent years, and the COVID-19 pandemic has accelerated this shift.

Historically, the notion of sustainable fashion focused on materials, and manufacturers began using organic cotton, linen, and other substances to market their products as sustainable or environmentally friendly. However, the conversation has since broadened to include the workers producing clothes and whether or not they're being paid a living wage or working in proper conditions.

The pandemic has caused further interest in sustainable fashion from consumers and clothing manufacturers. People are putting more consideration into health and sustainability, leading to higher expectations regarding social responsibility and environmental friendliness. Additionally, consumer desire for shopping has decreased due to personal-finances concerns and the rise in remote work and schooling.

Fashion brands and retailers are responding by implementing new sustainability initiatives, in addition to reaffirming pre-pandemic sustainability priorities. Moreover, the pandemic is forcing the industry to look for alternative to the traditional fashion wholesale model, which hasn't always supported a holistic approach to sustainability but rather more skewed to supporting retailers benefits with it's pressure on mass bulk production, sales and promotions and excess inventory. With the lack of foot traffic in brick-and-mortar stores, inventory excess soared and retailers cancelled orders.

Meanwhile, businesses with e-commerce reliance and sustainable practices thrived. Maison de Mode, for instance, experienced a 161 percent increase in sales between March and April, according to chief executive officer Hassan Pierre. In part, Pierre attributed this growth to more people thinking about their health and the importance of sustainable fashion.