The global fashion industry is undergoing a major paradigm shift. Over the last 10+ years, with online shopping via e-commerce growing leaps and bounds, many existing fashion retailers are trying to maintain a sound balance between their brick and mortar assets vs. digital assets.
In addition, with the millennials being the predominant target audience, market segment and demographics, fashion brands are constantly striving to meet their “instant” and “on-demand” wants, needs and desires while capturing the ever-growing purchasing power and market share of this very important end-customer group.
Whether it is haute couture, ready-to-wear, intimate apparel, active wear or accessories, fashion designers are constantly being challenged to “up their game” with the introduction of newer range of fashion products, services and accessories to meet the millennials’ tastes.
Further, with the rapid deployment of blockchain technology, big data and analytics, artificial intelligence, machine learning and robotics, the fashion industry must address “digital transformation” and it’s much wider impact. Fashion brands, whether large, medium, small or emerging, need to understand and appreciate the sea-change dynamics which is well underway via “disruptive” digital transformation on their existing assets under management (AUM), their expansion, newer value/supply chain infrastructure and their business-revenue models as well as their economic and financial models.
While there is primary focus on meeting end-customer demand, fashion brands must also address sponsors (including equity investors) and lenders requirements for ensuring bankability and risks mitigation along with meeting various sound sustainability goals, and achieving operational excellence with key performance indicators (KPI’s).Over the last century, the fashion industry has made a significant contribution to meeting global market demand in various segments including luxury, high-end, lifestyle and contemporary. With digital transformation, there exists new opportunities for fashion brands to emphasize and empower increased creative inspiration, invention and innovation in the entire “fibers-to-end customer” value/supply chains.