C&A, WE, Zara, H&M all have long chains sourcing in the Far East. The direct consequence of this is that a lot of volume has to be planned far in advance. The disadvantage is that it is difficult to make adjustments if the demand differs from the forecast. In times before the corona crisis, long chains got away with burning excess stocks. But now the demand for clothing is collapsing and the over-stocks are still somewhere in the pipeline, the long chains are intervening drastically and agreed purchase quantities are being canceled in full. The workers in Far East are suffering and do not get wages paid by government programs.
The easyessentials chain is short and clear, everything is designed, made and printed in Portugal and the Netherlands. Our chain is not only short but also very fast because we work in a direct mode with our partners, without intermediaries. All our partners understand why we don’t place large orders far in advance, we all think with a long-term cooperation perspective and not short-term profit.
Doesn’t Corona have a hold on a short chain? We also see declining demand on our basic products, but precisely because we are not inhibited by produced quantities that are no longer sold, we can switch quickly. A good example of this is our campaign: “Thank you, care heroes!”. We also see opportunities to make other products from our raw materials. We will soon be supplying a range of face masks from our factory. Again, no large containers from China with all the associated risks, but smaller reliable quantities from Portugal. That immediately feels a lot better!