How a four-year-old homegrown company is helping Mango and Next change the fashion game
Feb 19, 2025
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The global fashion industry is experiencing a massive transformation. Brands are minimizing orders and slashing production timelines, leading to fresher designs more frequently. Groyyo stands out by connecting brands with smaller factories, allowing for flexibility in production. Unlike its predecessors, this company thrived by focusing on international markets. Additionally, the struggles faced by other B2B platforms shed light on Groyyo’s innovative approach, proving that empowering small manufacturers can meet the ever-changing fashion landscape.
The global fashion industry is shifting towards smaller production batches, enabling brands to launch fresh designs every two weeks.
Groyyo's success stems from its strategic focus on international markets and small factories, avoiding pitfalls faced by larger competitors.
Deep dives
Reshaping Fashion Production
The global fashion industry is undergoing a significant transformation with brands like Zara drastically reducing production orders, allowing for fresh designs to appear every two weeks. Production timelines have been compressed from 150 days to less than 60, making rapid fashion cycles possible. This change is supported by intermediaries like Groyo, which facilitates small batch manufacturing and quick turnaround times through a network of specialized factories. As a result, Groyo has seen remarkable success, achieving 430 crore rupees in revenue during a period when many industries struggled, highlighting the adaptability of their business model.
Innovative Business Models
Groyo utilizes two main business models to serve international apparel brands effectively. In the first model, the aggregator takes orders directly from brands, overseeing the entire production cycle, while in the second, it earns commissions by connecting brands to factories. This flexibility has allowed Groyo to expand its factory network significantly, from 150 to 250 in just a year, serving diverse client needs across different garment types. By focusing on smaller factories that can handle low minimum order quantities, Groyo addresses a market gap that larger manufacturers often overlook.
Challenges and Competitive Advantage
While Groyo has found success, the B2B fashion space remains complex and fraught with challenges, as evidenced by the struggles of other companies like Genie Mode and Fashionza. Groyo distinguishes itself with a focus on smaller, more agile suppliers, avoiding the pitfalls faced by competitors that sought high-volume partnerships. However, maintaining consistent quality and compliance across numerous small factories poses its own set of difficulties. Groyo’s strategy includes offering support to these factories in meeting necessary standards, recognizing that the effort put into standardization can yield long-term benefits and positioning the company well amidst the evolving global market.
The global fashion industry is shifting dramatically. Brands like Zara that once ordered a minimum of 6,000 pieces per style, have dramatically reduced their orders to about 600 pieces. And it isn’t just a quantity thing, production timelines have shrunk from 150 days to less than half of that.
The result? Well, fresh designs every two weeks. This shift in the industry was made possible because of middlemen like Groyyo, who get small factories to manufacture clothes in small batches in record time.
The company’s strength lies in what other larger factories find challenging. When a brand places an order for 500 pieces to be readied in 60 days, large factories—those capable of producing batches of at least 2,000 garments—typically struggle to justify the operational adjustments required.
This isn’t the first time the textile industry has seen such moves. Other B2b Fasionplatforms like Geniemode and Fashinza also went down the same path but ended up burning over 100 million dollars trying to digitise this unorganised space. But Groyyo managed to recognise exactly what they were missing – a focus on international markets.
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