How Digital Transformation is Changing the Fashion Retail Industry
Retail Tech Insights | Thursday, February 04, 2021
The fashion sector is undergoing large-scale transformations due to the rise of technology and its effect on consumer behavior and must adapt.
FREMONT, CA: The fashion sector, ranging from global discount retailers to leading brands, drives a significant part of the economy. Fashion is a challenging field, highly affected by global economic uncertainty and distinct trends, and industrial changes. In response to the demand for growth and cost efficiency, several brands have started a series of initiatives to enhance their speed to market and deploy sustainable innovation in their product design, manufacturing, and supply chain operations. But several brands are still wondering how to bridge the digital divide. Read on to know more.
It takes years to build a successful brand. Fashion brands needed to be ready and able to respond to issues of uncertainty, risk, and reputation, all at varying times. But in a world of rising complexity and volatility, fashion brands will require balancing growth aspirations and operational plans with the risks they face. Several factors contribute to this environment, like evolving regulation, social media communications, more consumer channels, broader geographies, ad faster risks. Therefore, companies must increase their vigilance – with brand and reputation being the essential commodities to protect.
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Digital transformation is about changing ingrained perceptions about what a brand is, does, and says, and improving consumers' relevance. While the change towards omni-channel is real and evolving, most fashion revenues are still driven by offline, physical channels. For fashion brands, it might remain true that geographical location is still vital for capturing offline retail demand. Still, an essential enabler for success will be to ensure a consistent omni-channel consumer experience that encompasses physical, virtual, and emotional perspectives, from communication to conversion and beyond.
Many fashion brands take a fragmented method to digital transformation, focusing on digitizing processes or functions. Digital transformation is often restricted to individual programs or projects that impact only a small number of departments. The key is to find the balance between placing bets - provoking fast outcomes with innovative ideas - and developing the solid ground for a digital transformation.
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