From stitch to scale report: a data-driven look at what’s really reshaping fashion manufacturing

Uncertainty has become the new normal for fashion. Tariffs, supply chain disruptions, excess inventory, and shifting consumer demand are putting unprecedented pressure on brands, retailers, and manufacturers.

The new Retail Strategy Group x Lectra report “From stitch to scale” views into the structural pressures reshaping fashion today. Based on insights from senior leaders across retail, manufacturing, and brand organizations worldwide, the findings reveal an industry confronting systemic inefficiencies that hinder speed, visibility, collaboration, and profitability. Today, brands still operate with disconnected legacy systems, where siloed teams and fragmented value chains prevent data from flowing smoothly across stages of creation, production and market execution. The industry must rethink how it creates, manufactures and markets its products.

“For several years now, technology decisions have been framed as choices about how to improve individual tasks and increase output, instead of as opportunities to positively change strategic business outcomes – and this now has to change” explains Maximilien Abadie, Lectra’s Deputy CEO. As a technology provider, Lectra’s ecosystem of intelligent solutions offers a compelling path forward to collectively solve fashion’s complex equation: balancing growth, profitability, and sustainability.

To further examine these insights and explore new avenues for innovation, Lectra, is hosting a virtual webinar From Stitch to Scale: RSG x Lectra, on Wednesday, January 27, 2026, from 1:00 PM to 2:00 PM EST on Zoom. Liza Amlani, Chief Merchant and Principal at Retail Strategy Group, will be giving a comprehensive look at what global leaders say is driving the biggest changes, risks, and opportunities heading into 2026.

The study shows:

• Overdevelopment is now the #1 issue for companies across regions
• 81% say it is difficult to respond quickly to changing product needs
• Nearly 70% report manual errors that affect cost and margin
• Only 4% have fully integrated data across teams

1. Overdevelopment as a costly and widespread challenge

At the center of the report lies the confirmation that overdevelopment has become fashion’s most urgent and pervasive problem. Overdevelopment is not simply a matter of producing too many ideas; it signals a lack of early visibility, insufficient forecasting accuracy, and the absence of coordinated decision-making frameworks. The report underscores that this pattern has tangible financial consequences, reducing product margin, intensifying material waste, and making teams slower to respond to market shifts.

2. Siloed collaboration and limited data visibility

A second major insight of the report centers on the limits of cross functional collaboration. Respondents note that when data is scattered across teams or “held hostage,” their ability to launch new products is slowed, and decisions become less informed. Slower decision making is described as the most common consequence of siloed structures. Only 4% report fully integrated data, while the majority operate with partial integration or none at all.

3. Manual processes and first mile planning challenges

Manual processes remain deeply ingrained across the product lifecycle. The report describes extensive reliance on spreadsheets, outdated systems, and manual workarounds that slow progress and produce costly inaccuracies. Fabric planning emerges as a major weakness and 88% acknowledge that fabric waste affects manufacturing costs and sustainability goals, underscoring that material planning is frequently reactive and disconnected from upstream decision making.

4. Manufacturing inefficiencies and opportunities for process innovation

Manufacturers report difficulty forecasting production output, poor visibility into supply chains, and inefficient tracking systems as dominant challenges. Downtime reduces output and revenue but also creates opportunities for process improvement. Respondents highlight that meaningful progress begins with upstream process innovation, which provides the foundation for adopting technology that enhances accuracy, automation, and agility.

To know more: join the virtual webinar From Stitch to Scale: RSG x Lectra.