When it comes to idea generation, it may be simple, but challenges arise when start-ups decide to lay down their ideas in action. One such instance relates to choosing the ‘Right Vendor’ as its selection will directly impact fashion start-ups’ operations, success and long-term growth.
As fashion start-ups are known for their innovative product approach, be it start-ups innovating at yarn, fabric or garment level, it’s very important to actually be aligned with the right vendor. It’s not wrong to say that the right vendor can ease and built a strong formation.
Common challenges surrounding the community
Common challenges for start-ups include finding the right balance between cost and value, dealing with vendors with high minimum order quantities (MOQs), facing longer lead times due to their size and struggling to stand out in a crowded market with unique designs. Additionally, maintaining consistent high-quality products is pivotal for building reputation and establishing a loyal customer base. Start-ups carefully evaluate the value proposition of potential vendors before making decisions to avoid costly mistakes in the long run.
Ashwini Seth, CEO of Dennison India (D2C workwear apparel for men and women) believes, “There is difficulty in finding vendors willing to work with smaller minimum order quantities (MOQs). Start-up finances are often tight and high MOQ requirements can strain their limited budgets and hinder growth prospects. Therefore, flexible vendors who can accommodate smaller order quantities to support their initial stages of growth are a must.”
Similarly, Amol Goel, Founder and CEO of Louis Stitch, a Gurgaon-based D2C premium luxury brand for men’s footwear and accessories brand that has recently forayed into the clothing section, emphasises on the challenge of product cost-value mismatch for start-ups.
In discussion with Apparel Resources (AR), he states, “Negotiating lower prices with vendors may initially seem appealing, but if the vendor fails to deliver enough value, it can become costlier in the long run. Start-ups must carefully assess the value proposition of potential vendors before finalising any deal.”
Additionally, quality is crucial for start-ups when choosing vendors. Consistent high-quality products are vital for building a good reputation and loyal customer base. Standing out in a crowded market with unique designs is another challenge.
Illesh Ghevariya, Founder of French Crown, a Surat-based funded menswear D2C brand that caters to over 80 countries, briefs to AR, “The process of right vendor selection is really important considering the multitude of factors involved such as small MOQ, unique design options or consistent quality.”
He also adds that many vendors offer similar designs, making it difficult for start-ups to differentiate themselves. Overcoming this obstacle requires relentless searching for vendors who can provide innovative and distinctive designs, enabling start-ups to make a lasting impression on consumers and carve out their niche in the industry.
Criteria for evaluating potential vendors by fashion start-ups
Experts advise start-ups to be cautious during the vendor selection process to avoid common mistakes. Higher advance amounts combined with delayed deliveries could be lethal to start-ups. Therefore they should conduct thorough background verification and assess the vendor’s track record, financial stability and reputation before committing to a partnership. Avoid choosing vendors that are also start-ups, as they may lack experience and resources. Review samples of their previous work and meet the team to ensure compatibility with your company culture. Prioritise vendors that demonstrate flexibility and agility to adapt to a dynamic start-up environment. Additionally, consider long-term compatibility by assessing
the vendor’s scalability and willingness to accommodate future growth. By keeping these factors in mind, start-ups usually navigate to be in a better position in the market.
B2B Marketplaces help in vendor selection
One notable approach followed by start-ups is the utilisation of B2B marketplaces tailored to their needs. The marketplaces Udaan, The Yarn Bazaar offer a curated list of vendors, streamlining the selection process. Start-ups easily explore and choose vendors based on factors like budget, scope and timeline. Leveraging these marketplaces helps start-ups discover suitable partners aligned with their specific requirements, catering to their unique needs efficiently.
Narinder adds, “An excellent example of such a marketplace is Benchkart, which offers a curated list of vendors, making the selection process easier and more efficient.”
Amol from Louis Stitch believes, “Smart start-ups choose vendors who already have abundant orders and have their factories running at 90 per cent-95 per cent utilisation. Such vendors cannot onboard a giant brand (no headroom is left) but remain curious to onboard a smaller brand that can fill their remaining 5 per cent-8 per cent utilisation. Such vendors pass on the cost advantage to smaller /new brands and sometimes work on good credit terms as well.”
