When a direct-to-consumer shapewear brand begins opening multi-thousand-square-foot stores in prime global retail locations, the signal goes far beyond retail channel expansion. Skims' new 12,000 sq ft flagship in London and CEO Jens Grede's target of over 100 stores by 2027 are quietly rewriting the supply chain rules for the intimate apparel category.
The Sourcing Logic Behind Brand Expansion
Skims' offline expansion is not a simple channel replication. The 12,000 sq ft London store requires maintaining an in-store inventory far exceeding its online SKU count. For fabric suppliers, the most direct impact is a shift in order structure. DTC brands previously relied on small-batch, high-frequency replenishment, but physical stores demand more stable basic-item stock while retaining quick replenishment capability.
This 'both-and' demand is forcing upstream fabric mills to adjust production flexibility. A brand serving both online and offline channels will exhibit a clear bifurcation in fabric procurement: basic styles require scale for cost reduction, while traffic-driving styles demand rapid sampling. For shapewear fabrics—typically polyester, nylon, and spandex blends—this means mills must simultaneously handle large-volume orders and small-batch quick-turn orders.
Specific Impacts on the Textile Supply Chain
Skims' expansion plan affects the textile chain at three levels. First is the concentration of fabric types. Shapewear fabrics rely heavily on high-elasticity, high-recovery knitted cloth, which demands high-quality yarn and precise knitting—typically concentrated in industrial clusters like Yiwu (Zhejiang) and Foshan (Guangdong). An increase in store count will directly boost orders for high-density elastic fabrics from these regions.
Second is the pressure on dyeing and finishing. Shapewear fabrics require processes like setting, calendering, and antibacterial treatment. In-store display demands high consistency in color fastness and hand feel. Dyeing mills that cannot maintain batch-to-batch color control risk returns. This requires upgraded dyeing recipe management and finishing equipment precision.
Third is logistics and inventory management. The shift from pure online to 'online + store' mode compresses required supply chain response time from weeks to days. Fabric suppliers sticking to traditional stock models risk exclusion from procurement lists. Mills offering VMI (Vendor Managed Inventory) or nearby warehousing services will gain stronger bargaining power.
Industrial Cluster Response Strategies
For elastic fabric clusters like Yiwu, Skims' expansion is both opportunity and challenge. The opportunity lies in order volumes potentially rising from trial kilograms to regular tons; the challenge is meeting the brand's dual requirements for delivery speed and quality without raising prices.
Public data shows Chinese elastic fabric export prices hover around $4-6 per kg, leaving thin profit margins. To improve service without price hikes, mills must absorb costs through process optimization and digital management—for example, using automated inspection systems to reduce defect rates or ERP systems for real-time order tracking.
Warp-knitting mills in Foshan should focus on functional fabric upgrades. Skims' product line has expanded from shapewear to underwear and loungewear, meaning demand for moisture-wicking, antibacterial, and cooling fabrics will grow. Factories offering differentiated functional fabrics have a chance to enter its core supplier list.