Indirect Procurement in Fashion: Why does it fall short of its potential?
Indirect spend now runs well above 20% of turnover at most fashion companies – high enough to move EBIT, in a sector with no buffer left to absorb it. Yet for most organizations, this is still not managed as a strategic lever.
The Inverto Fashion Study 2026, based on 154 senior executives across the European fashion sector, finds a structural execution gap: a persistent distance between what leaders prioritize and what their organizations actually deliver. The problem is not ambition or awareness. Fashion companies know what matters. Where they fall short is turning that recognition into governed, measurable results, and the survey data shows exactly where the gap sits.
What does it take to close the execution gap?
The study concludes with four priorities for fashion procurement leaders, spanning how indirect spend is owned at board level, why digital capability has to come before reorganization, and how ESG, AI, and category strategy each need to move from intent to execution.
The full report sets out each priority in detail, with the data behind the findings above.
Key Findings
Indirect spend is big enough to move EBIT and most boards aren’t managing it that way. Indirect spend exceeds 20% of turnover for nearly 9 in 10 fashion companies. In a sector with no margin buffer to absorb it, this cost base directly erodes EBIT when left unmanaged.
Digital capability, not structure, decides who stays in control. Centralization on its own delivers no governance advantage. What separates the companies that manage indirect spend well from those that don’t is digital capability, and the difference in governance outcomes between the two is substantial.
The gap is not isolated, it runs across every major priority. From ESG to AI, leadership sets the direction while the tracking, tools, and accountability needed to deliver are rarely in place, turning the same shortfall into a recurring pattern rather than a one-off.
One playbook doesn’t fit all categories. Marketing, logistics, and store construction each carry distinct ownership and value potential and most companies are leaving value on the table by treating them the same.
See the full picture including category deep-dives that show where fashion procurement is losing value. Download the full study results for free:
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Our Fashion & Luxury Experts
Acknowledgement: Special thanks to Filippo Galanti and Anna Bicancchessi for their valuable contributions to study analysis.
Daniela Klotz
Managing Director
Birte Nernst
Senior Project Manager
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