Unravelling the Threads | Ankit Jaipuria @ ZYOD
In the fast-paced world of fashion, where trends change at the speed of light, Ankit Jaipuria has carved out a niche with ZYOD, a startup revolutionizing the B2B fashion manufacturing industry. Drawing from his extensive experience in management consulting and a family legacy in textiles, Ankit shares insights into the challenges and opportunities in this vibrant sector.
🌍 Understanding the Fashion Industry Landscape
The fashion industry is a multifaceted ecosystem, comprising various components contributing to its overall operation. Essentially, it can be divided into two main segments: the visible brands that consumers interact with daily and the often unseen manufacturing processes that bring these products to life.
“The whole fashion space is, in my understanding, two parts: unique clothes and the dark side where not a lot of people know about, it's the whole design to manufacturing phase.”
This distinction highlights the complexity of the fashion supply chain, where the journey from concept to consumer is fraught with challenges and opportunities.
The traditional players in this landscape, such as PDS Limited and Gokaldas Exports, serve primarily as contract manufacturers. They do not possess their own brands but instead produce items according to the specifications of larger labels like Zara and Levi's. This system has been the backbone of fashion manufacturing, particularly in regions like India and Bangladesh, which have established themselves as global hubs due to their labor-intensive processes and cost advantages.
“Garments is a very labor-intensive process, and in India, you have cheap access to labor.”
This economic advantage has positioned India as a frontrunner in the global manufacturing landscape for apparel and across various sectors.
“This is the decade of India.”
📊 The Organized vs. Unorganized Markets
When analyzing the Indian fashion market, it becomes evident that a significant portion remains unorganized.
“Over eighty-five to ninety percent of the whole market is unorganized.”
This presents both a challenge and an opportunity for emerging companies like ZYOD.
Organized Market: Comprising brands like Zara, H&M, and Levi's, this segment represents the structured, brand-driven side of fashion.
Unorganized Market: This includes local players and smaller retailers, which dominate the market but often lack larger entities' brand recognition and operational efficiency.
The rise of brands targeting tier two and tier three cities indicates a strategic move to tap into this underserved market.
“Zudio and similar players are doing that disruption.”
⚡ The Rise of Fast Fashion
Fast fashion has transformed the industry by introducing a model that emphasizes rapid production and turnover.
“The whole difference is in how the products have evolved over time.”
Traditionally, the fashion cycle was dictated by seasons, but the fast fashion model has shifted this paradigm. Today, brands are launching multiple collections throughout the year, catering to a consumer base that craves novelty. This shift has led to an increase in fashion SKUs—individual styles that are refreshed more frequently than ever before.
“Earlier, there were primarily two seasons, summer and winter. Now it is summer, spring, pre-fall, back to school, winter.”
🏢The Impact of Fast Fashion on Consumer Behavior
Fast fashion has not only changed production timelines but also consumer expectations. Brands like Zara pioneered this movement by ensuring that stores were filled with new styles every few months, creating a sense of urgency among shoppers.
“A buzz was created that, okay, this is a Zara product, and there was a sense of exclusivity.”
This model has now become the norm, with consumers anticipating frequent updates in their favorite stores. The challenge for brands is to maintain quality while meeting this demand for speed.
🚀 Shein: The Disruptor in Fast Fashion
Shein has emerged as a formidable player in the fast fashion arena, pushing the boundaries of what is possible in terms of speed and affordability. They can launch new collections in just seven days, a stark contrast to Zara's 45 to 60 days.
“Shein became that ultra-fast fashion player."
Ankit highlights the importance of “high width, low depth” in Shein's model, where they focus on launching a variety of styles in smaller quantities. This approach minimizes risk and maximizes responsiveness to consumer preferences.
Additionally, Shein’s online-first strategy allows them to cut costs associated with physical retail spaces, further enhancing their competitive edge.
“While in the store, you can go and see your jacket before you buy it, at Shein, it's so cheap that you feel like even if it's not a great buy, I can still take the risk.”
🔄 Ankit's Transition from Consulting to Fashion
Ankit's journey into the fashion industry is a fascinating tale of serendipity and passion. Initially rooted in management consulting, Ankit found himself drawn back to his family's textile legacy.
“Sometimes, something is in your destiny. Even if you run away from it, you sort of get into it.”
His background in mechanical engineering and supply chain operations provided a solid foundation for understanding the complexities of the fashion industry.
“I had always been passionate about doing business.”
The Catalyst for Change
The onset of the COVID-19 pandemic created a unique opportunity for Ankit to pivot. With more time on his hands and a growing interest in the fashion sector, he connected with the founders of Fashinza.
“I thought, let's take that move.”
Joining a seed-stage company was a bold decision, especially at a time when such moves were less common.
🌱 The Birth of ZYOD: From uKom to a New Venture
As Ankit delved deeper into the fashion industry through his work at Fashinza, he recognized a significant gap in the market for a more agile supply chain. This realization led to the inception of ZYOD, a venture focused on providing a fast fashion supply chain that addresses the industry's pressing challenges.
“We wanted to create a supply chain focused on fast stat low MOQ.”
By targeting minimum order quantities and reducing lead times, ZYOD aims to empower brands to operate more efficiently and responsively.
Scaling Operations and Revenue
Within six months of launching uKom, the initiative achieved impressive results, generating approximately $500,000 in monthly revenue.
“Everyone was looking at us in disbelief that we are working at a six-month cycle.”
The success of uKom demonstrated the viability of their model, and Ankit's vision for ZYOD continued to evolve.
“From a small idea, it scaled very fast.”
🔧 Building a Fast Fashion Supply Chain
Creating a fast fashion supply chain involves rethinking traditional manufacturing processes and embracing technology. This streamlined approach allows ZYOD to challenge the status quo, reducing lead times significantly compared to the industry standard.
“We are taking six months, but theoretically, on paper, everything was easy or achievable.”
Embracing Technology for Efficiency
The integration of technology plays a crucial role in ZYOD's operations. By leveraging data and analytics, the company can better understand market trends and consumer preferences, enabling them to make informed decisions about inventory and production.
“The disruption in the mindset was also required.”
Ultimately, ZYOD's mission is to create a supply chain that not only meets the demands of fast fashion but also empowers brands to succeed in an increasingly competitive landscape.
🌏 Navigating International Markets
Expanding into international markets is a crucial aspect of ZYOD's growth strategy. Ankit's approach to breaking into foreign territories is methodical and rooted in building strong relationships.
“The first entry point is often through expos. These events allow you to meet potential customers and establish connections.”
By participating in international expos, ZYOD positions itself to attract brands looking for reliable manufacturing partners. However, Ankit emphasizes the importance of local presence.
“Once you understand the market, having local representatives is vital. It’s about building relationships and trust.”
This strategy has proven effective in markets like Japan, where cultural nuances can significantly impact business dealings.
“We look for individuals with industry experience who can act as the face of our company.”
This approach facilitates smoother communication and helps navigate potential challenges.
💸 Funding and Growth Trajectory of ZYOD
Securing funding has been pivotal for ZYOD's rapid growth.
“We raised approximately $21 million, which has allowed us to scale operations and expand our reach.”
This funding has been instrumental in establishing ZYOD as a key player in the fast fashion supply chain. The investment has also facilitated the opening of international offices, including locations in Japan and the UK.
⚠️ Challenges in the B2B Fashion Manufacturing Industry
The B2B fashion manufacturing landscape is not without its challenges.
“The complexity of operations is a double-edged sword.”
One of the most significant challenges is managing the diverse needs of clients while ensuring operational efficiency. “
"Demand, operations, and finance must all align perfectly. Failure in one area can cascade into the others.”
Key Challenges Identified
High Demand Variability: The fashion industry is notoriously unpredictable, making it essential to adapt quickly to changing trends.
Operational Complexity: Coordinating across multiple suppliers and managing a labor-intensive workforce presents logistical challenges.
Quality Control: Ensuring consistent product quality across various manufacturing partners is critical to maintaining brand reputation.
✅ Quality Control and Operational Efficiency
At ZYOD, maintaining quality is paramount.
“Quality control is integrated into every step of our process, from design to delivery.”
This commitment ensures that clients receive products that meet their expectations.
“Inline quality checks are crucial. We aim for less than 2% rejection rates.”
Each stage of production involves specific quality assessments to catch issues early.
Operational Strategies for Quality Assurance
Comprehensive Training: Ensuring that all team members understand quality standards and procedures.
Real-Time Monitoring: Utilizing technology to track production metrics and identify potential issues swiftly.
Feedback Loops: Establishing communication channels with clients to gather feedback and continuously improve processes.
🌟 Future Opportunities in Fashion for Entrepreneurs
The future of fashion holds immense potential for entrepreneurs.
“Embrace the evolving landscape and identify gaps in the market.”
As trends shift and consumer preferences change, there is a growing demand for innovative solutions that address the challenges of fast fashion.
“Sustainability and technology will play pivotal roles in shaping the future of the industry.”
Areas of Opportunity
Sustainable Fashion: Developing eco-friendly products and processes to meet consumer demand for sustainability.
Tech-Driven Solutions: Leveraging technology to streamline operations and enhance customer experiences.
Customization: Offering personalized products to cater to individual consumer preferences.
As the fashion industry continues to evolve, Ankit believes that entrepreneurs who stay ahead of trends will find ample opportunities for success.
🧩 The Philosophy Behind Naming ZYOD
The name 'ZYOD' was a deliberate choice for Ankit and his co-founder, Ritesh.
“We wanted a name that was short, catchy, and easy to pronounce across different languages.”
Choosing a name that is memorable and unique is crucial in the crowded fashion industry.
"The four-letter word resonates with a sense of modernity and forward-thinking.”
Ultimately, the name ZYOD embodies the company's mission to revolutionize the fashion supply chain, making it a fitting choice for Ankit's vision.
Watch the full episode on YouTube:
Listen now!
Other ways to listen:
Your Feedback matters
As always, I’d love to hear your thoughts! Whether it's about this episode or ideas you’ve been playing around with, shoot me an email at ad@thepodium.in. Your feedback keeps these conversations going, and I’m always up for chatting about your startup ideas too.
Until next time,
Your Host,
Akshay Datt