The emphasis on domestic manufacturing is important because it’s one path to circumvent the problem of longer, less predictable shipping times, and shortages of raw materials. It’s a shift Davis thinks will be a permanent one for the brand.
Between supply chain disruptions and the spike in brands buying lower-impact materials to help them meet their sustainability goals, supplies of recycled nylon and recycled polyester have been backed up globally. “Lead times there have doubled and in some places tripled, because it’s getting the materials, and then because of [Covid] shutdowns, they’re behind schedule,” says Davis. Organic cotton, which was in short supply even before the pandemic, has only become harder to source, she adds. Now, Mara Hoffman is working with US-grown organic cotton for the first time, which Davis explains has been a major effort because it “requires building that entire supply chain”.
The brand is also working with a farming partner in India to source regenerative organic cotton, and is developing a new, nylon- and polyester-free swimsuit material expected to launch in November, a timeline that was accelerated in response to disrupted supplies of staple materials.
Retail strategy pivot
Delays in product shipments have caused uncertainty with its wholesale buyers as well, and some have been more flexible than others. Mara Hoffman has 38 stockists globally.
“Our wholesale partners are the ones who have to make the decision whether they still want the goods. That to me is the most heartbreaking, if they’re like, ‘Well, it’s too late, we don’t want it’,” says Davis. In those cases, they have to find a way to sell through that inventory themselves or find another partner to work with. “But, it’s pretty hard to find a partner at that late stage in the game, so then we’re just kind of dealing with it,” she says. “Some partners are so understanding and they’re like ‘yes, we’ll do whatever we can’. And some — I’m sure they’re just also struggling, and trying to figure out how their businesses can survive.”
The brand has redirected its focus to its direct-to-consumer channels, where purchasing decisions are more reliable and it can more effectively communicate with its customers. DTC currently makes up 70 per cent of annual sales, compared with 30 per cent before the pandemic — and commercial VP Macarena Cifuentes sees this moving towards a ratio of 65 per cent DTC, 35 per cent wholesale as they continue expanding in both channels.
