Reduce incoming product flows.
For all fashion players, this is THE number one priority. By the end of March 2020, Marks & Spencer, Primark and Hennes & Mauritz (mainly supplied by China and Bangladesh) all suspended future clothing orders from Asian, Turkish or North African factories. For instance, the British fashion retailer Marks & Spencer deferred orders and asked partner factories to stop supplies of raw materials so as to “not worsen an already difficult period for all”. Ulrika Isaksson, H&M’s spokesperson, said the company had actually reviewed “all possible adjustments regarding recent orders”. An overall strategy is being widely adopted. The first axis is that most retailers have decided to pay for inventory already ordered, manufactured or in transit by sea freight. The second axis is that all new orders are on hold to avoid surplus that has to be stored at Western warehouses.