Renner's weapons in the crisis: super fast production and little stock

The fashion industry has been hit hard by the crisis of the new coronavirus in Brazil and worldwide. At Renner, the largest clothing retailer in the country, it was no different.
In the first quarter, the company made a profit of 10.4 million reais, compared to 162 million reais in the same period last year. A 94% drop. Still, the company's president Fabio Adegas Faccio tells EXAME: "This is renner's time."
The executive, ahead of Renner since April last year, uses motorsport to talk about the company's moment in an especially challenging scenario. "Ayrton Senna was a favorite when it wasn't raining. When it rained, it was sure he'd win. Renner's the same. When it's not raining, we're favorites. In the rain, there's no one."
Among the differentials of the company to navigate this difficult time the executive highlights its agile production model. Previously, Renner's parts production cycle was six to nine months. Today it takes 10 to 45 days in national products. The model allows the company to work with less inventory and be able to meet more quickly the trends sought by customers.
"We enter at this point with low stock and new stock, so we are managing to drain. Customer demand is changing fast and if my cycle was long, I would have been caught in the crisis with high inventories of products that the customer no longer wants," says Faccio.
The executive states, however, that the model is not the same as fast fashion, fashion production mode focused on many collections with cheap pieces to be used few times. "Fast fashion is a pejorative term, which refers to a rampant consumerism. The speed in our chain is no use for consumerism. It serves to be responsive to customer demand. Improving processes is sustainable and we do that. But producing only what is necessary and avoiding waste is even more."
He continues: "A company that produces without knowing what it will sell in general produces too much, generates too much stock and then burns the margin of the products; some even burn their own products," he says.
With this model, Renner was also able to maintain orders for its suppliers, albeit in a smaller volume, helping its chain to remain in the crisis period. "We work with partners of 30, 25 years, and we support them in every way. With credit lines, consulting, and adjusting our demands to their production.
If we didn't have this fast cycle, I wouldn't be getting anything," he says.