Anifa Mvuemba’s fashion label Hanifa seemed to be on the rise. It has received celebrity endorsements from Savannah James, Ashley Graham, Quinta Brunson, Megan Thee Stallion, Gabrielle Union and Bella Hadid; received a lot of industry attention, including being named a 2021 CFDA/Vogue Fashion Fund winner; and had a loyal fan base, as evidenced by the many drops sold.
But in March, Mvuemba announced that he would be suspending the production of the product. The label fell victim to production delays, late shipments and unhappy customers. “For now, I’m thinking. I’m protecting what’s important to me this season. And I’m allowing myself to be a person in this show. I don’t know exactly what Hanifa’s future looks like at this time. And for the first time in 14 years, I don’t mind saying that out loud,” said Mvuemba.The Cut. Hanifa’s conclusion reveals the unpleasant truth that sometimes, the momentum of a business can be the downfall of a brand.
It’s not the only fashion business facing production problems: Two days after Mvuemba’s announcement, British-Jamaican designer Martine Rose shared that she is canceling production of her Fall 2026 collection due to unforeseen circumstances.
“Usually when something like that happens, there has to be, I have to think, a disruption in the supply chain somewhere,” Phyllis Sevachko, senior product manager and project manager for product development company Stateless, explains to Ujo Shop. High material costs, limited factory space and low cash flow are the main factors contributing to the issue, he says.
The truth is that, in fashion, fast support can be a double-edged sword: It can keep a business running, and it can also expose its weak points. Without the right infrastructure – production relationships, cash flow, inventory management – the more momentum a label gains, the more likely it is to fail.
It begs the question: What can companies do to avoid this fate? Ahead, industry experts reveal how brands can position themselves for sustainable growth.
Image: Daniel Ceng/Anadolu via Getty Images
Find the Right Industry
It is important for product developers to build strong relationships with their manufacturers. That bond can affect how much flexibility the factory gives the client, such as prioritizing a quick production change or taking on a high volume of purchase orders.
“Brands need to have that relationship in place,” Sevachko said. “That’s what I emphasize about the brands we work with, and it takes time to build a relationship with them.”
Selkie founder Kimberley Gordon can attest to this firsthand: In 2021, Selkie’s Puff Dress went viral on TikTok, resulting in a product that sold consistently as Gordon scrambled to keep up with demand. “It just blew up,” he thinks. “I couldn’t keep this dress in stock. I made these bulk orders and I would have to sell it on a pre-order because I couldn’t make enough to keep up with the demand.”
It took months for him and his team to finally be able to deal with this situation, which he said would not have been possible without a good relationship with his firm. “One of the drivers of Selkie’s success is that I have a great company and we’re very close,” said Gordon. “Factory maintenance is essential for startups. […] They control how much you can make. You can’t just place random orders. They carry a lot of variety and should put it on the calendar.”
That alignment can depend heavily on physical proximity. Sevachko points out that, in home factories, clients can benefit from face-to-face interaction and a hands-on approach. In contrast, overseas factories are far away, both literally and figuratively, and are more likely to put products ahead of large orders. That leaves emerging brands in a vulnerable position, increasing the likelihood of production delays.
“Sometimes [overseas factories] they’re not even willing to work with small emerging brands, or it’s just not a priority for them to prioritize those orders,” explains Sevachko. “So they end up taking a long time to produce and the delay can stop the product from hitting a certain mark, especially if it’s seasonal stuff, which can really hurt.”
That’s why it’s important for brands to diversify their supply chain as soon as they’re financially able. “If something happens with the main factory or the only one you work with, now you’re left scrambling to make a last-minute relationship with a new person,” says Zapora Berry, owner of Stellar Fashion Consulting. “It’s important to have more vendors in the area.”
Photos: Getty Images
Have a Financial Plan
Money rules the world – and it rules supply chains, too. If production cannot keep up with demand, you may not have the cash flow to finance the production of additional goods. Businesses typically place orders six months in advance, which means they spend significant capital before receiving revenue.
“Manufacturers generally don’t give brands, especially small brands, credit. So they have to pay a percentage up front, have financing for that and then pay the balance when they deliver,” explained Gary Wassner, CEO of manufacturing and finance company Hilldun Corp. “The fashion business needs a lot of money.” Working with third-party vendors can make things even more complicated and lead to waiting six to eight months for payment, he notes. (And that’s assuming the seller isn’t looking at his own financial problems.)
Berry adds that many emerging and smaller brands can exceed the minimum order requirements of factories. “The product can be finished before it starts if they commit to these very low costs and invest all their initial money in the first batch that they don’t even know they will sell,” he said.
Finance firms like Hilldun Corp help close this cash flow gap by paying stores directly or by borrowing for purchase orders, giving companies breathing room to wait for revenue. “It gives brands an opportunity to grow because they don’t have to wait for the store to pay,” Wassner said.
However, it is important for brands to have a well-thought-out financial plan to deal with unexpected difficulties, including increases in demand. “The product needs to consider economies of scale,” Sevachko said. “As you grow, what does that look like? And are you destined for that success? As you grow, more money is needed to support that.”
Technologies like AI have made it easier for startups to track (and predict) their numbers. Gordon is using AI to help with inventory management: “I can use AI to better predict how much I can sell,” he says. “The hardest thing about managing a brand is innovation. Having too much puts you in a position of liability.”
Image: Chris J. Ratcliffe/Bloomberg via Getty Images
Determine the Right Production Model and Distribution Channels
While it’s tempting for small or emerging brands to use standard mass production models, that decision should be informed by product size and budget. “Try to work less to get enough food,” Gordon said. “You can order 1,000 [units]even if you think you can sell that much. Start small and let it grow slowly.” Gordon recommends the pre-order model, especially for labels facing tough production numbers. The way she can predict how long her Puff Dress will last has gone viral. “The pre-order allows you to see how many you can sell in real time,” she explains. It prevents brands from holding on to stock that doesn’t sell.
While Berry admits that pre-ordering is a viable option for many brands, it comes with limitations that must be considered. It can be a difficult model for emerging companies, as consumers tend to want instant gratification, he says. “They don’t always want to wait, especially if it’s a brand they don’t know and the brand hasn’t built that perceived value yet.” Other models that product developers can explore include small batch and made-to-order.
According to Wassner, solving the demand equation is not just a guessHowthe product is made, but alsothereconsumers have access to it. To that end, he strongly advocates for a multi-channel channel. “Businesses must understand that investing in specialty stores around the world is important because it is those small stores that build loyal fans and will continue to buy your product season after season,” he stressed. “You can’t just sell one supermarket. That’s too risky.”
If a brand relies only on DTC, even though it offers better margins, it can leave the founder in a difficult situation if they are out of stock and there are no other channels for consumers to buy from.
All in all, the fashion business is a tough one to navigate, and while there is no way to guarantee success, there are safeguards that brand founders can use to prevent failure. Building good relationships with vendors (many!), sticking to a clear financial plan and knowing what production model works for the brand can set the business up well to deal with problems and unplanned consumer interest.
“You have to be able to pivot and react to it,” Sevachko said. “Look at your sales, look at your historical data, look at your inventory, look at everything. When the demand rises and you can’t handle it, it might need some outside help. But I think it’s a good problem. You might need some outside help, but that’s a good problem that every brand would like to have.”
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