Australian online retailer VRG GRL has transitioned to an in-house design model.
While the decision was announced earlier this year, co-founder Daniella Dionyssiou says the process began in late 2020.
In addition to creating greater transparency around its supply chain, the move aimed to boost private-label revenue as consumer expectations shift.
“At the time, VRG GRL exclusives made up 20% of our sales, and made up 80% of our best-sellers list," Dionyssiou explains.
"It was clear that customers wanted more VRG GRL exclusives, so we started the process of building out our product and design teams.
“During this time, we learnt that to have a really successful in-house brand, we would have to commit more resources to planning, research and development, production and logistics.
“In order to make this feasible, we needed to commit to deeper inventory and get behind the designs, rather than looking to external trends to influence planning."
According to Dionyssiou, the move wasn't without its challenges.
“Previously, we purchased inventory from a range of suppliers, including labels, agents and wholesale suppliers.
“The first big step was hiring incredible in-house designers, so that we could begin to build our own designs, patterns and blocks.
“The second big step was building out our supply strategy and developing the production and logistics schedules.
“This was a particularly challenging task to undertake in the midst of the global pandemic in July 2021, and it did take some change and adaptation to solidify a plan that worked.
“The last big step was the decision to focus on delivering fewer, stronger styles and really work hard to create the most coveted styles possible for our customers.”
Sustainability
During the transition, VRG GRL set a target for private label revenue to make up 70% of sales, which the brand reached in early 2022.
By then, sustainability had become a key issue for VRG GRL, prompting it to phase out suppliers and commit to a full in-house model.
“It's important for us to acknowledge the impact that fashion has had on the environment," Dionyssiou says.
“For us, we were at a turning point where by moving to an in-house model, we could make significant changes in order to do better.
“The transition to an in-house design-led business model ensures we as a company have complete transparency over where the clothes are made, how they’re made, and who’s making them.
“Customers may have noticed fewer weekly drops on the VRG GRL site, and this is because by producing less and doing more behind the scenes, we’re supporting our goal of becoming a more considered business.”
Much of VRG GRL’s sustainability efforts lie within its supply chain, with waste management being a major area of concern. Textile waste, according to Dionyssiou, is one of the biggest contributors to global pollution.
“Earlier this year, we launched our Cupro collection, made from resources that would have otherwise been tossed away, and we’re excited to say that we have collections in the works being developed from 100% sustainable and recycled fabrics.
“We’re also making efforts to work with ethically certified factories, ensuring our garments are designed to last and are of the highest quality.
“We’re definitely not perfect and we’re nowhere near finished, but we’re passionate about making change and showing our industry that all of this is possible while still being affordable for our customers.”
VRG GRL is now committed to cleaner processes across its business, Dionyssiou says.
“For us, it was about initiating better design through fabrics and waste-management to implementing compostable packaging and giving back profits to global causes we care about."
“We believe there’s action to be taken at every stage of our product lifecycle and we’re excited to continue evolving our sustainability initiatives to become a more considered brand.”
Supply chains and the future
With supply chains across many industries impacted by COVID-19, Dionyssiou says the transition has assisted in mitigating risk long-term.
“The lead times are longer," she admits. “However, that's actually a result of supply chain instability created by COVID-19 and definitely played a part in our decision to move to an in-house model.
“By working on our own collections and not looking to external trends, we aren't bound to - or affected by - delays in delivery.
“We have used the learnings from the pandemic to adapt our strategy and eliminate some of that risk.
“We take a little more time in each stage of the process – from range planning, pattern design, sampling, and quality control, as well as working with our suppliers to explore better quality and more sustainable fabric options.”
Dionyssiou says the key to navigating the changes has been learning, adapting and reviewing.
“In 2020 we had a single buyer. Fast forward to today, we’ve scaled to have dedicated design, production and planning teams.
“We’ve certainly faced our challenges when building this from scratch, all the while working hard to keep garments affordable, as we promised our customers from day one.
“We want to show that it is possible to be a brand that makes cool, great quality pieces that incorporate more conscious fabrics and production methods - whilst also being affordable.”
“We’re so excited that we can breathe new life into preloved textiles and allow customers to give them the love they deserve for a little bit longer."