Fashion logistics: building a more agile and sustainable brand

Fashion is the world’s largest e-commerce category, and the market was forecast to reach a value of US$1 trillion in 2024. Around 100 billion clothing items are produced globally every year—twice the volume recorded two decades ago.

China remains the leading clothing exporter for both B2C and B2B trade. Its established manufacturing base can deliver high volumes at speed and relatively low cost, supported by demand from the US, the European Union, Japan and the UK.

Sustainability is reshaping fashion commerce

Alongside mass production, consumers are showing stronger interest in brands that consider the full life of a garment. Rental services and second-hand marketplaces are expanding, while McKinsey has linked difficult economic conditions with greater demand for resale, rental and discounted goods. The global second-hand apparel market is expected to double by 2027 and is growing three times faster than the apparel market overall.

Norwegian brand Varsity Headwear illustrates the challenge of growing while maintaining ethical standards. Co-founder Sebastian Adams said logistics and transport represented a substantial share of the company’s emissions. The business is carbon neutral through offsetting and is working towards insetting, which focuses on reductions within the value chain.

Luxury brands are also exploring traceability. Louis Vuitton and Cartier launched Aura in 2021, described as the first global luxury blockchain, allowing consumers to follow a product’s lifecycle by scanning its label. Despite economic volatility and high inflation, McKinsey forecast 5–10% growth for the luxury sector, partly because shoppers may view durable, high-quality goods as a long-term investment.

Steps towards a more circular supply chain

• Plan for reverse logistics. Recycling, repurposing, repairing and reselling can extend product life, reduce waste, lower costs and strengthen customer loyalty.
• Review materials. Organic cotton and recycled fabrics are among the options brands can assess when seeking alternatives to materials produced with pesticides or other chemicals.
• Examine suppliers. Review environmental policies, certifications and independent assessments. Bluesign is one example of an industry framework used to demonstrate progress in textile sustainability.
• Consider Resale as a Service. External recommerce providers can help fashion companies establish tailored resale channels and create another source of revenue.
• Work on returns. Each return creates additional transport and processing activity. Studying the main reasons for returns can reveal where product information or virtual try-on tools may help.

Textiles account for 6% of global greenhouse-gas emissions, while manufacturing dyes are responsible for one-fifth of industrial water pollution. DHL’s GoGreen Plus solution uses Sustainable Aviation Fuel and, according to the source guide, can reduce greenhouse-gas emissions by up to 80% compared with fossil fuels.

AI, customer experience and supply planning

Artificial intelligence is being applied across fashion retail. Gucci uses it to support brand storytelling and help onboard customer advisers. Valentino has introduced virtual try-on for ready-to-wear collections, while Farfetch reported a 20% reduction in returns after adopting a 3D try-on solution. AI can also support route optimization, demand forecasting and inventory planning. Burberry uses image recognition to identify counterfeit products, and Dior launched an influencer chatbot on WhatsApp in 2022 to share exclusive brand videos.

Fashion shoppers move between websites, stores, apps and social platforms, so an omnichannel approach is increasingly important. A dedicated mobile app can provide extra product information in-store or arrange home delivery for an in-store purchase. Brands without physical locations can explore livestreaming and augmented-reality try-on experiences.

The original guide also discussed changes announced for Facebook and Instagram Shops from February 2024, in the context of the US market. Those platform rules should not be treated as Serbia-specific requirements. Businesses selling to Serbian customers should verify the currently applicable local and platform terms.

Tools for international fashion sellers

DHL lists a Packing Guide for Fashion Apparel, covering packaging approaches for different garments. MyGTS is a free platform for international trade information, including HS codes, landed-cost calculations and import restrictions. DHL Express Commerce connects with e-commerce platforms such as Shopify and supports order importing and shipping workflows.

Dynamic Discounting provides increasing discounts as shipping volume grows, although exact estimates depend on the business account and should be discussed with a DHL Account Manager. For brands entering new markets, local logistics expertise can also help clarify customer expectations and delivery-market conditions.