1.Severe cash flow pressure: Upstream suppliers must advance high production costs, including energy, while downstream retailers face extended payment cycles and platform defaults. Financing channels are limited (low venture capital interest and difficulty obtaining bank loans), exposing brands to the risk of a broken capital chain.
2.Prominent supply chain crises: Soaring energy prices are driving up production costs (e.g., dyeing and spinning). The relocation of major customers is squeezing local supply chain resources. Combined with low energy rationing priorities, brands face a dilemma: either facing sky-high costs or halting production.
3.Heavy compliance and environmental burdens: Stringent European regulations (e.g., REACH and Fit for 55) are demanding. Environmental certification and decarbonization investments consume over 7% of revenue and nearly 6% of profits. Consumers’ dual demand for “low prices and sustainability” exacerbates the cost-benefit ratio.
4.Weak digital capabilities: Most brands lack an online presence (nearly one-third don’t sell online). They lack social media operations, precision marketing, and data analytics capabilities, resulting in customer acquisition efficiency far below that of fast fashion giants and a significant lack of online competitiveness.
5.Difficulty in achieving a brand premium and competition: Brands are facing price pressure from low-priced fast fashion brands like SHEIN and secondhand platforms like Vinted. Limited resources also hinder design innovation, making it difficult to establish a brand premium. This leads to a dilemma of “unable to compete on low prices, unable to create premiums.”
6.High channel dependence risks: High reliance on wholesale channels and third-party platforms exposes them to problems such as platform closures, delayed payments, and increased commissions. Building their own offline and online channels is costly, making it difficult to break out of the cycle of “dependence being exploited, and the inability to build independent channels.”
You can trust us. keofi.com
Open factory on-site/online live tours, provide production qualifications, and share cooperation cases with similar customers
Provide detailed cost breakdown (fabric, processing, energy consumption, etc.), compare it with the industry average price to prove its rationality, and promise no hidden fees and no arbitrary price increases after signing the contract;
Use digital tools to allow customers to view information in real time, inform them of potential risks (such as fabric procurement cycles) and response plans in advance, and clearly state delayed compensation clauses when signing contracts;
We assign a dedicated contact person before sales and actively follow up on order feedback after sales. We promise to respond to problems within 24 hours and provide solutions within 48 hours.
