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WHY DIGITAL PRODUCT CREATION NEEDS REVIVING

Digital Product Creation (DPC) was once heralded as the answer to efficient product development in fashion, promising reduced costs, streamlined processes, and faster market launches. Despite early enthusiasm, however, the momentum behind DPC has slowed. Fashion retail brands faced escalating costs, operational disconnects, and limited Return on Investment (ROI), turning what was meant to be a transformative approach into a costly, fragmented practice.

In light of these challenges, a question emerges: Can suppliers take on a more central role in DPC to reignite its potential? As brands increasingly rely on suppliers for complex backend processes, a supplier-led DPC model could address these limitations by placing DPC where it naturally fits within the value chain. This article argues that a supplier-driven model is the most viable way forward. By positioning suppliers as the primary drivers of DPC, the fashion industry can achieve greater efficiency, reduce environmental impact, and foster a collaborative ecosystem between retail brands and their manufacturing partners.

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WHY DPC HAS STALLED: BRAND-CENTRIC LIMITATIONS

When brands initially adopted DPC, the objective was clear: streamline design processes, cut down development timelines, and respond faster to market demand. DPC was supposed to bridge the gap between design, development and manufacturing, offering tighter production control at lower costs. However, brands soon found themselves up against significant obstacles.

Key limitations have stalled brand-driven DPC initiatives:

• Fragmented Knowledge: Many brands lack the technical product development, manufacturing, and supply chain expertise needed to fully leverage DPC tools, limiting DPC’s potential for real efficiencies.
• Technical and Financial Barriers: Advanced technologies like 3D modelling and material digitisation presented steep integration and cost challenges. For many brands, the high investment required was difficult to justify without a clear ROI.
• Operational Disconnects: Aligning DPC processes with existing supply chains proved complex. Instead of creating seamless workflows, retail brands often encountered inefficiencies and misalignment between design intentions, development technicalities, and manufacturing realities.

These challenges underline a gap between the potential and practical applications of DPC in a brand-led model. By placing DPC in the hands of suppliers—who are already embedded in production—these limitations can be overcome, allowing for a streamlined approach that maximises DPC’s benefits.

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ADDRESSING THE RESPONSIBILITY SHIFT: NAVIGATING THE POWER IMBALANCE BETWEEN BRANDS AND SUPPLIERS

As brands increasingly turn to suppliers to manage Digital Product Creation (DPC), a critical challenge emerges: the potential for brands to offload responsibilities and pressures onto their suppliers. This power imbalance, rooted in long-standing industry dynamics, often leaves suppliers in a position where they bear the brunt of financial and operational burdens without equal influence over decision-making.

Power Dynamics and Brand Pressures

The globalisation of supply chains has concentrated power in the hands of retail brands, enabling them to dictate terms to suppliers, often to the detriment of the latter’s stability and autonomy​. Brands frequently enforce stringent timelines, last-minute order changes, and cost constraints that suppliers must absorb, creating a precarious operational environment. Suppliers are often left with few options, as non-compliance can risk losing critical business relationships. This dynamic is further complicated in a DPC context, where brands may expect suppliers to invest heavily in digital tools and infrastructure without providing adequate financial support.

Risk of Exploitative Practices

Research reveals that the power imbalance can result in exploitative practices, such as delayed payments and short-term contracts, which shift financial risks onto suppliers​. The pressure to meet brand demands without corresponding support can lead suppliers to cut corners, potentially compromising product quality, ethical labour practices, and environmental standards. This shifting of responsibility, particularly in DPC where initial investment costs are high, risks placing undue strain on suppliers, jeopardising both quality and sustainability.

The Need for Collaborative Models

To mitigate these risks, a more balanced, collaborative approach to DPC is essential. Brands that view DPC as a joint investment, rather than a cost-cutting exercise, can support their suppliers by co-investing in digital tools and sharing the operational benefits. Transparent communication, fair contract terms, and realistic timelines can further ease the pressure on suppliers and encourage a healthier, mutually beneficial partnership. By fostering a relationship where responsibility and rewards are equitably shared, both brands and suppliers can create a more fair and efficient DPC model that drives long-term value.

The Corporate Sustainability Due Diligence Directive (CSDDD) exemplifies an effort to rebalance power dynamics, mandating that brands take accountability for ethical practices throughout their supply chains​. This directive, along with other industry standards, can help enforce shared responsibility and ensure that brands provide necessary support to suppliers, particularly in DPC implementation. By adopting collaborative frameworks, brands can foster a partnership that aligns incentives and mitigates the risk of responsibility dumping.

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SUPPLIERS' NEW ROLE IN THE FASHION VALUE CHAIN

As fashion industry dynamics evolve, power is shifting from retail brands to suppliers. Retail brands now depend on suppliers not only for production but also for expertise in critical backend processes. This growing dependency stems from the complexity and cost-intensity of these operations, where suppliers possess the capabilities to handle them efficiently. Consequently, suppliers are stepping beyond traditional roles, positioning themselves as integral players in product development.

Suppliers are uniquely positioned to lead DPC for three main reasons:

1. Control over Manufacturing: Suppliers have hands-on control over each phase of production, enabling them to oversee and optimise the full design-to-manufacturing cycle.
2. Technical Resources and Expertise: Suppliers possess the technical knowledge and digital tools to streamline design and prototyping in ways that brands cannot replicate without major investments.
3. Alignment between Design and Production: With DPC under their purview, suppliers can align design intentions with manufacturing realities, ensuring consistent quality and faster time-to-market.

By embedding DPC as a core service, suppliers not only enhance their value proposition but also become essential partners in the fashion value chain.

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KEY BENEFITS OF SUPPLIER-LED DPC

Efficiency and Sustainability Gains

A supplier-led DPC model offers significant efficiency improvements. With digital sampling and prototyping managed by suppliers, brands can reduce physical sample requirements — lowering costs, cutting waste, and accelerating production. This streamlined alignment from design to manufacturing allows for faster, more cohesive cycles. Suppliers can implement design changes rapidly, enabling brands to respond to trends and seasonal shifts without costly delays.

Enhanced Collaboration and Quality Control

Supplier-led DPC fosters real-time collaboration, minimising miscommunication between design and production. Suppliers, deeply integrated into manufacturing processes, can offer consistent quality benchmarks from the outset. This minimises costly adjustments and builds trust, as suppliers bring established expertise and align processes with digital standards.

Innovation and Market Responsiveness

A supplier-driven DPC approach allows brands to access faster prototyping and testing, essential for keeping pace with rapidly changing market trends. Suppliers with advanced digital tools can quickly turn concepts into manufacturable designs, positioning brands to respond swiftly to consumer demand and maintain competitiveness.

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PRACTICAL CONSIDERATIONS AND BARRIERS FOR SUPPLIERS

Financial & Operational Challenges

Implementing DPC at the supplier level requires substantial initial investment in technology and training. These costs span software, hardware, and system integration—representing a significant financial outlay, especially for smaller suppliers. Additionally, DPC shifts some traditional brand responsibilities to suppliers, adding to their operational workload. However, partnerships with brands, who stand to benefit from DPC’s efficiencies, can help share these costs and reduce the financial burden on suppliers.

Technical Integration Needs

DPC integration demands that suppliers synchronise digital tools with existing manufacturing systems, often involving complex software and real-time data integration. For suppliers new to digital processes, these requirements can be daunting. Collaborative efforts between suppliers, brands, and tech providers can facilitate smoother, less costly DPC adoption, enabling suppliers to establish a stable technological foundation.

Cultural Readiness and Skill Building

Moving from traditional production to a digitally enabled model requires a cultural shift within supplier organisations. Suppliers traditionally focused on production efficiency must now cultivate a digital-first mindset. By investing in workforce training and digital literacy, potentially in collaboration with brands, suppliers can bridge skill gaps and confidently lead DPC, fostering a sustainable transition that benefits the entire supply chain.

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STRATEGIC RECOMMENDATIONS FOR A SUPPLIER-LED DPC MODEL

Collaborative Investment Models

To make supplier-led DPC financially viable, brands and suppliers should consider joint investments. By co-investing in DPC capabilities, brands can share initial costs, while suppliers manage operations. This partnership structure aligns incentives, establishes DPC as a shared asset, and strengthens long-term brand-supplier relationships.

Transparent, Streamlined Communication

DPC success depends on real-time, transparent communication between brands and suppliers. Suppliers should leverage digital tools to maintain visibility across the design-to-production cycle, ensuring quality and design consistency. Transparent platforms that facilitate instant feedback reduce miscommunications, building trust and ensuring reliable quality control.

Long-Term ROI through DPC

For DPC to deliver sustainable value, suppliers should adopt a long-term perspective, viewing DPC as both a competitive differentiator and a strategic asset. Although initial investments in technology and training are high, the benefits of reduced lead times, lower sampling costs, and optimised processes provide a clear ROI. A commitment to DPC positions suppliers as innovation leaders, attracting brand partnerships and aligning with the industry’s shift toward efficient, sustainable practices.

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THE FUTURE OF SUPPLIER-LED DPC IN FASHION

Projected Benefits for the Fashion Supply Chain

A supplier-led DPC model offers resilience, quicker adaptability, and cost-sharing benefits that enhance the entire supply chain. By centralising DPC with suppliers, brands can respond more swiftly to market shifts, improve lead times, and build more equitable partnerships. This model elevates suppliers as strategic partners in the creation of high-quality, market-ready products.

Sustainability & Compliance Opportunities

Supplier-led DPC aligns seamlessly with emerging regulations, such as the Corporate Sustainability Due Diligence Directive (CSDDD). With more stringent sustainability standards, a supplier-driven model simplifies compliance by embedding sustainable practices into the production process. Digital sampling and virtual prototyping reduce waste and environmental impact, meeting both regulatory requirements and consumer expectations for responsible production.

Encouraging Brands to Support the Shift

Brands should support the shift towards supplier-led DPC, viewing it as a strategic investment in efficiency and sustainability. By collaborating on DPC capabilities, brands strengthen their supply chains and innovate alongside suppliers. This shift represents more than an operational change—it’s an industry evolution towards a sustainable, responsive, and profitable future.

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A NEW ERA FOR DPC

The move to a supplier-led Digital Product Creation (DPC) model addresses long-standing challenges in fashion production, offering a resilient, efficient, and sustainable supply chain where brands and suppliers both benefit. As suppliers embrace DPC, brands are encouraged to co-invest and support this shift, establishing DPC as essential for competitive advantage in an environmentally conscious market. Embracing a collaborative, digitally enabled future is not just strategic—it’s essential for an industry committed to innovation and responsibility.

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