Published July 2025
FUTURE PROOFING
YOUR BUSINESS
Photo by Danaisa Rodriguez on Unsplash
SOURCING at MAGIC’s experts weigh in with proven strategies for surviving and thriving during tumultuous times.
FUTURE PROOFINGYOUR BUSINESS Photo by Danaisa Rodriguez on UnsplashPublished July 2025SOURCING at MAGIC’s experts weigh in with proven strategies for surviving and thriving during tumultuous times.If there’s one certainty in business, it’s uncertainty. From pandemics to natural disasters, economic shifts, tariffs, and political changes, supply chains face a wide range of external forces that can cause significant stress if not adequately planned for and managed. These stress points should be viewed as opportunities for growth and diversification, providing avenues to future-proof your business.
“Diversification allows us to gain a better understanding of the options and resources that are available, shares Edwina Kulego, VP of Events, International, Men's & SOURCING at MAGIC. "What countries haven’t I considered? What technology should I review, that will help me make better decisions or cut costs? De-risking and diversifying are two key strategies that every business should consider. It means eliminating risk while freeing up options. We should all have a contingency plan so that if some portion of the supply chain is cut off, or if some part of the world is in turmoil, then you have established relationships somewhere else. Do you have another manufacturer or maybe a factory that might be a little more expensive—which is why you don't work with them all the time—but if you needed to, you know they would have the capacity and capability to produce at a level that would be satisfactory?”
“Unexpected change can push us to become more creative and more bulletproof.”
- Edwina Kulego, VP of Events, International, Men’s & SOURCING at MAGIC
The SOURCING at MAGIC team asked experts from across the sourcing realm—veterans in supply chain, manufacturing, forecasting, technology, and sustainability—to share their expertise on how to build a stronger, more resilient sourcing strategy. In fact, some of these featured experts are also speakers at SOURCING at MAGIC’s Las Vegas events where you can not only connect with suppliers and manufacturers from around the world but also plug into an extended network of other sourcing pros like these. It’s the place to futureproof and diversify your business. (Check out the full education schedule for the August edition here.)
Register to attend the upcoming edition of SOURCING at MAGIC Las Vegas thisAugust 18-20, 2025
SET REALISTIC EXPECTATIONS
Edward Hertzman, the founder of Hertzman Global Intelligence, and the founder of trade publicationSourcing Journal, says, planning for disruption is the new normal. You always have to be vigilant, with your eyes open and contingency plans in place. The smaller you are, the less important you’ll be to everybody. (Editor's note: Hertzman will be moderating the SOURCING at MAGIC panels "Policy Pivots Update in 2025: Part 2" on August 18th at 4PM PST and "Future Proofing: Building Supply Chains that Bend, Not Break" on August 19th at 10AM PST.)
“Planning for disruption is the new normal.”
- Edward Hertzman, Founder, Hertzman Global Intelligence
“Don’t let your passions cloud your judgment," says Hertzman. "Is there really a market fit for what you want to create? This may sound contradictory, but a mature business needs to have a diversified supply chain. However, a smaller business should focus on getting products into the market quickly. It’s better to produce small runs and sell out at lower margins. It’s also important to work with a factory that’s the right size, so that when a large order comes in from one of the major brands, your order isn’t pushed aside, and you miss the delivery window. That’s why it may be best to work with an agency or a virtual manufacturer that has boots on the ground in that country, if not in that specific factory.”
Photo by KSENIA CHERNAYA
SEEK OUTSIDE EXPERTISE
The recent editorials Sourcing 101 and 102 discussed the importance of budgeting for line items such as legal and accounting services, which may initially seem like an added, unnecessary expense, but can ultimately save a significant amount of money in the long run. “Consider hiring a consultant,” says Lloyd Parks, the CEO of Dominissi, an apparel supply chain company. “You’ll get more than you pay for. I know how to build it, from the yarn to the finished product. I’ve worked in every position; I’ve sold it, made it, produced it, traveled all over the world doing it… and I’ve got a lot of scars from things that have gone wrong. I know what not to do. So, you’re going to get more than what I’m charging you for the consulting time,” he adds.
“Companies need to develop a sourcing strategy based on the ‘what-ifs,'" says Parks. "This strategy extends beyond just price or margin, and it can be challenging for corporate teams to accept. I have created a sourcing approach that minimizes disruptions, ensuring I haven’t concentrated too much sourcing in one area. That’s easier said than done, but I recommend that smaller companies focus on nearshoring and made in USA options, aligning their growth strategies accordingly. You might sacrifice some margin in the USA, but for new or smaller firms, market penetration is just as vital as margin. You can achieve this by sourcing smaller quantities rather than tying up funds in inventory. By accepting that margin loss, you can grow, move into new regions, and then source larger quantities, making sure your orders aren’t overlooked because they’re too small.”
Parks echoes Hertzman's sentiment, agreeing, “For smaller brands, it’s about finding the minimums because inventory isn’t your friend. Don’t fall in love with your product. Everything has a lifecycle. Look for options so that you don’t have to carry inventory, or so that you can react more quickly. If all your money is tied up in stock, and you have to dump it, you’ll be lucky to make 50 cents on the dollar."
Photo by MORGAN LANE on UNSPLASH
Parks continues, “The key strategy that I would share with a U.S.-based start-up brand is to begin with North America, then expand to Central and South America. From there, venture into Southeast Asia as your business grows. With that strategy in mind, when you’re ready, you will have a plan in place. You’re already having conversations with factories and building relationships for when you are ready for that next step. As you grow, keep some of your business with those existing factories so that, if something happens, you still have production in those other regions, and you’ll never be out of inventory.”
“Companies need to develop a sourcing strategy based on the ‘what-ifs."
— Lloyd Parks, Dominissi
Steve Trayner, president of sales for CFL Enterprise, Ltd., is another supply chain partner, that specializesin working with brands that are early in their lifecycle, those who are experts in a particular area—a footwear brand that wants to become an apparel company, for example—and with those that want to scale but are unsure they have identified the right areas of focus for growth. Trayner provides an example of a client that is a lifestyle golf apparel brand. “The founder came from a high-end suiting company, sourced locally, and didn’t have international sourcing experience. His backer, now the company CEO, came from a tech background.They found their sources for production by sifting through companies that had listings on Alibaba [the multinational conglomerate known primarily for its online B2B marketplace]. They were lucky and actually did okay on their first try. But they were searching in a sea of unknowns. We were able to help them find the best factories for their category and help the company grow to the next level."
Working with a consultant should also enable a company to leverage an established network of suppliersand manufacturers and minimize the pitfalls of rising tariffs and unfamiliarity with regional practicesor specializations.
Photo by The New york public library on UNSPLASH
“We manufacture in 13 countries. China is one, but we’ve been shifting production away from there for the past four years to diversify our supply chain,” says Trayner. “We produce in Southeast Asia, as well as in Pakistan, India, Bangladesh, Egypt, and even South America. Do you want to risk manufacturing in an unfamiliar location? Do you have strict requirements for technical properties, sustainability, or quality control? We can assist with all of those things. A small brand might find a factory claiming to meet all those standards, but until you visit, you won’t know the potential challenges. We have Quality Control teams and local staff in every country where we manufacture. When producing on a large scale and with high-quality standards, you can’t leave things to chance.” (Editor's note: Steve Trayner will be speaking at SOURCING at MAGIC's "Policy Pivots Update in 2025: Part Two" session on August 18th at 4PM PST.)
NETWORKING IS KEY
One key strategy is to start growing your network, so you have the perspective it takes to build a flexible plan. “I’m on calls every day with brands that are trying to develop Plans A, B, and C,” says Jessica Kelly, Vice President of Supply Chain Partnerships for Nest, a non-profit organization that advocates for artisans, makers, and the global craft sector.
“When I worked internally at a brand, things felt very siloed,” adds Kelly. “We tend to focus on our brand ethos, goals, and values. Now I’m always on the phone with different types of brands—luxury, mass-market, emerging, and small designers—so I get a broader perspective on trends happening in the industry on both a micro and macro level.” “Our coalition includes several major brands and is a multi-stakeholder initiative that unites companies to tackle some of the biggest challenges in the artisan and handcraft industry. In response to recent events, we shifted the focus of our meeting this year to tariffs. Experts will discuss our current position, whether we still anticipate changes, and some contingency plans to consider as we move forward. We believe it was essential to stay flexible, especially during a year of rapid and frequent changes, to ensure the agenda remains member-driven and relevant in the event of new issues emerging.”
Photo by KRISZTIAN MATyAS on UNSPLASH
“Be tapped into the industry and trusted peers, from whom you can get insight and advice."
— Jessica Kelly, Nest
As Kelly emphasizes, it’s essential to stay connected to a broader network. “Be tapped into the industry and trusted peers, from whom you can get insight and advice. It’s important to have access to confidential spaces where you can have frank conversations.” (Editor's Note: Jessica Kelly will be speaking at SOURCING at MAGIC's "From Risk to Resilience: the Hidden Workforce that Can Make or Break Your Supply Chain" session on August 18th at 11AM PST.)
SOURCING at MAGIC offers a wealth of opportunities to build connections with manufacturers from all over the world and like-minded sourcing professionals from companies of all sizes. The event also features seminars with consultants and fashion pros of all stripes, with plenty of opportunities to ask questions, gain perspective, and swap business cards. (Check out the full education schedule for the August edition here.)
PUT TECHNOLOGY TO WORK
While none of us has a crystal ball, technology and reliable data can go a long way towards helping businesses make smarter decisions. Be sure to check out the Fashion and Technology in 2025 report on the new technologies impacting the fashion industry, as well as this additional 2025 US Fashion Consumer Outlook Report for actionable industry data.
Julie Evans, Founder & Fashion Insights Director of predictive analytics firm Sustalytics, came from a large European fashion company where she specialized in sourcing and corporate product strategy. Like most companies, they’d review past sales data to formulate the coming season’s orders for production on a massive scale. “My concern was that we weren’t using enough data,” she says. “A best-seller is only a best-seller when the consumer decides to buy it, and yet we weren’t involving consumers in any stage of the design or planning process. So, I pivoted into technology.” Evans explains Sustalytics’ process by saying “We ask people what they want before we produce it.”
Sustalytics gathers digital, anonymous data by surveying consumers at scale. Participants don’t know which brand they’re reviewing, and the company utilizes social media to ensure it’s targeting the right audience but doesn’t collect any personal data from its respondents.
Evans often finds herself involved in sustainability discussions, knowing that her technology can help prevent overproduction of products that don’t sell, or worse, end up in a landfill.
“I also understand that fashion is a creative world. Designers don’t want to be told what to design. But do you want to make art? Or do you want to sell?” “I’m always trying to make data sexy,” says Evans.” We collect not just opinions but also data like how long consumers spend viewing an image. Each image is packed with specific visual attributes. A photo might show a top with a high, mid-neck collar, and it’s sleeveless…these attributes are data! By organizing it this way, you can draw certain conclusions and find directions. We can learn that hot pink may not sell well in France, but it will likely do better in Italy. A hat will sell better with a pom-pom than without one. This detail is vital to designers because they can use it to co-create. We can use the data to develop products that consumers will love.
“If you don’t value the data, I’m not going to pursue you. Many small brands lack data. They don’t want to waste their savings. They’re putting all their money into production. But it’s so easy to test a small part of it. This way, you know how to invest. Take a sports bra, for example: test the different shapes. If you only have the budget to produce one, make the best one, the one with the highest scores. Test different colors. Build it step by step. I know our service has a cost but think about the money you could be losing.” (Editor's Note: Julie Evans will be speaking at the "Unlock FW26 Trends & Colors with AI" panel on August 20th at 12PM PST.)
Photo by CHARLOTA BLUNAROVA on UNSPLASH
Ben Hansen, Editor-In-Chief of fashion technology news site The Interline, says “Most sourcing and supply chain solutions that can give you greater visibility and control, granular risk analysis, are all pitched at big companies. These are companies that have so many suppliers that they don’t know who’s who or where their risk lies. They’re more looking to shift things around, and work through sourcing agents or on-the-ground coordinators. They accept that they are putting a lot of trust in a technology platform, letting somebody else do the legwork for them.”
“For smaller companies," Hanson continues. "The challenge is to know where they can make things well. The only way a brand can determine this is by visiting a show like SOURCING at MAGIC. I encourage young brands to attend trade shows and engage with trade bodies in specific areas. Meet with agents that represent regions.”
Hanson adds, “An important thing to remember is that tech packs are generally universal, with some regional differences in units or wash care labels, etc. Pattern, measurement points, grading, materials, etc., are similar, but the bigger issue is the variation in technology levels across different regions. For example, if you’ve been designing in 3D, you might not be able to simply transfer that to a new sourcing base. Your new suppliers may not be prepared or set up to work with that platform. You may also encounter varying standards and quality profiles across different regions. If you’ve been experimenting with design using AI, your current manufacturer knows how to handle some of the issues that might come from using that technology. However, your new supplier might not.”
Photo by ROBS on UNSPLASH
SUSTAINABILITY: FUTUREPROOFING FOR BUSINESS AND THE PLANET
While the long-term goal of most sustainability programs is to future-proof the health of our planet, in the short term, sometimes abandoning what can seem like onerous, time-consuming certification procedures may feel like the smarter move. Trying to figure out how shifting—or even conflicting—government policies might affect your company’s plans also presents a time-consuming challenge. Dr. Cindy Lin, CEO of Hey Social Good, points out that, instead of thinking of these issues as a bunch of rules that have to be followed, look further ahead, and watch for the resources and opportunities you’ll need to grow your business. “If you’re a global company (which you have to be these days),” says Lin, “you must negotiate all the European Union’s policy initiatives, and, in the United States, sustainability law varies from state to state. [Be sure to check out this report, Fashion Technology Foundations: Regulations, Compliance, and Disclosure, which discusses new regulations in the United States and the European Union.] You may begin to wonder if it’s even worth it to proceed with your company’s sustainability initiatives. With so much uncertainty, what should you do? Avoid focusing solely on the short term and look further ahead. Ask how you will gather the resources to keep your business going. Have Plan A, B, and C. Prepare alternatives and build relationships before policies change."
Dr. Lin continues, “Sustainability doesn’t just apply to our concerns about the environment or social problems. These policies haven’t been put into place just to make life miserable. To use a non-fashion industry example, in California, composting is a legal requirement. The state does not enforce the law and allows every municipality to handle it in its own way. But the reason that California is doing this isn’t just to make life difficult. It’s because our landfills are at capacity. Studies have shown that as much as 40 percent of the waste being put into landfills is compostable trash. So why can’t we pull it out and put it in our soil? Nobody wants a landfill in their backyard. We need to control waste upstream, and the government is thinking 20 to 30 years ahead.”
Photo by JANKO FERLIC on UNSPLASH
Future-proofing your fashion business isn’t about having a perfectly shined crystal ball or about being the smartest person in the room—it’s about building flexibility, foresight, and resilience into every aspect of
your supply chain. Whether it’s diversifying your sourcing base, tapping into predictive data, aligning with compliance frameworks, or—what is probably most important—forming strategic relationships, rely on SOURCING to discover new manufacturers, suppliers, and technology providers. Our unique mix of educational sessions and networking opportunities will help you prepare for whatever the future holds.
Keep these messages in mind:
- Unexpected change is a certainty
- Set realistic, logical goals
- Seek outside help, build your network, and get to know sourcing professionals and brands from parts of the market that offer a different perspective.
- Source locally at first, then consider nearshoring, and finally, explore more global opportunities. Always seek to diversify and keep channels of communication open.
- Put technology to work for you (and save money in the long run).
- Sustainability strategies, while good for the planet, are also good for maintaining a healthy, diverse business structure, and for long-term planning.
SOURCING offers help with all of these points, from identifying new sources and manufacturers from a global selection, to meeting vendors that offer the highest quality consulting and latest technology, to educational seminars and sustainability guidance, to—perhaps best of all—opportunities to meet and connect with fellow sourcing professionals at all stages of their careers and from across the industry spectrum.
JOIN THE COMMUNITY
Learn more about how to become a part of our global sourcing community. Join us at the next edition of SOURCING at MAGIC August 18-20, 2025
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