Are You Killing the Profit in Your Fashion Business?

There are plenty of external pressures impacting fashion businesses right now. Rising costs, cautious consumers, increasing competition and the growing cost of customer acquisition are all very real.

But what if some of the biggest threats to profitability are actually coming from inside the business?

In this episode of Fashion Business Mindset, Elizabeth Formosa looks at the decisions and behaviours that can quietly erode profit in founder-led fashion businesses.

From overbuying, poor merchandise planning and unplanned markdowns to margin erosion, marketing inefficiency, warehousing costs, data hygiene and operational cost creep, Elizabeth explores some of the profit leaks she sees most consistently across the industry.

She also looks at the responsibility of the founder as the business grows. You don't need to know everything, but when you find yourself acting as the buyer, merchandise planner, marketer or commercial leader without the necessary knowledge or training, how are you building that capability and getting the right support around you?

The episode explores:

Merchandise planning, inventory and open-to-buy

Protecting intake margin and reducing margin erosion

The true commercial impact of markdown and promotional activity

Sourcing, supplier terms and cash flow

Marketing efficiency, customer acquisition and lifetime value

Warehousing, technology and operational cost creep