The nomination of PlatformE as a Top Information Technology Company in Portugal by BestStartup.eu for its innovative Information Technology and societal impact confirms the important work that we have been doing in accelerating the fashion industry’s digital transformation. Not that we’re desperate for affirmation or anything.
We are now in the midst of the most challenging time in the history of the fashion industry, as seen by the numerous problems that the pandemic has brought to light. Brands, retailers, governments, and consumers are now addressing the fashion industry's many ethical, social, and environmental challenges, which have been overlooked for decades. Among these, the overproduction problem is without a doubt the most serious challenge that the industry has faced in the last few decades with the rise of fast fashion, and it is the root of many other issues.
To help tackle these challenges we are changing the fashion paradigm by establishing a technological stack that delivers a live, fully connected manufacturing system. We're speeding the adoption of 3D digital fashion (e-fashion) and on-demand production by guiding the industry into the next stage of its digital revolution. Our solution connects demand from the point of sale to manufacturing in real time, boosting the number of full-priced products sold. In the end, brands profit from avoiding massive sampling and photoshoots, as well as eliminating dead stock.
At PlatformE we are committed to making a positive and lasting impact in the world by helping fashion brands and retailers tackle the overproduction problem. Our mission is to drastically reduce overproduction and waste in the Fashion industry. It’s a worthy goal that will only become more of a focus for the industry moving forward.
The fashion industry is now operating using demand projections that inform production. While managing a very complex and endless supply chain, brands and retailers must forecast demand for the next 9 to 12 months based on inaccurate market predictions. Unfortunately, humans are notoriously poor at accurately predicting what will happen over the next year. This projection model requires the spending of a significant amount of human, physical, and financial resources in order to manage inventory that, in the end, is sold at astonishingly low prices, improperly disposed of in nature, or even burnt - resulting in an incredibly harmful impact on the environment.
The management of inventory and deadstock is the number one problem in the fashion industry. The problem does not exclusively concern the waste of material resources but it also includes industry profitability. More than 30 percent of finished goods are never sold, and the number of goods sold through promotions and heavy discount sales can approach 75 percent, resulting in a dramatic decrease in profit margins. To maximize profit, brands pressure suppliers for the lowest feasible cost; on the other hand, suppliers demand a large volume of purchase orders to meet cost targets. It’s not a healthy situation for anyone.
In the current push business model, profitability for retailers and manufacturers is slim. While managing finished goods inventory is crucial for most fashion brands, it adds no value to the business. Inventory management is by far the most significant threat in terms of profitability, but it is still overlooked as a means to an end. Fortunately, the challenges revealed by the pandemic have driven a paradigm shift in the industry.
PlatformE will continue leading the charge to ditch the outdated projection model for something better and more efficient. By utilizing the latest technology we can dramatically reduce waste and solve the fashion industry’s most pressing dilemma.