Challenges and Effective Strategies in the Fashion Industry – Plans and Activities for Innovation Improvements
Abstract
We live in a digital and technological age where the internet, social media and technological advances are transforming society with astonishing speed. The fashion industry and brands must react to these rapid changes and the challenges posed by them to their current business models. By adopting effective strategies they can take advantage of the opportunities the digital age offers. This report has three main aims: to explore the challenges faced by the fashion industry over the next decade; to critically analyse strategies which fashion brands are adopting to meet these challenges effectively and achieve global brand recognition, customer loyalty and profitability; and finally to make recommendations and a strategic proposal for innovation improvements. The report will meet these aims by: 1. reviewing current research, reports, findings and literature to explore which strategies the industry is adopting and draw conclusions about their effectiveness and 2. carrying out a survey of consumers who are active users of technology and social media to ascertain how effectively the fashion industry and brands are engaging them and affecting their buying choices and behaviour. The results of this research will provide additional evidence as to the effectiveness of the industry´s strategies.
Contents
1. Introduction
The fashion industry has been transformed in the last two decades. The impact of globalisation, the speed of technological innovation and changing customer behaviour, have driven this transformation. Global fashion brands continue to face unprecedented challenges in the lead up to 2020 and beyond. If these challenges are met through effective management and planning, there are also massive opportunities to improve global brand recognition, customer loyalty and profitability. This report will set out these challenges and critically analyse the strategies the fashion industry and brands are adopting. The report will also make recommendations and a strategic proposal for innovation improvements.
2. Theoretical Context: The Current State of the Fashion Industry
The BoF-McKinsey Global Fashion Survey 2017 showed that the global fashion industry was worth an estimated $2.4 trillion and accounted for 2 percent of the world´s Gross Domestic Product (GDP) as the fifth largest sector in the global economy (Ahmed, et al, 2016). Despite its overall success, the BOF Survey highlighted serious challenges affecting the whole fashion sector: falling growth, political instability and changing consumer behaviour. These challenges are set to continue for the foreseeable future. Clearly the fashion industry needs to adopt strategic, long term, comprehensive management plans and marketing solutions for this volatile, challenging global environment.
Globalisation itself has thrown up many complex challenges for fashion companies´ business strategies: for example, the radical change to work practices through outsourcing; key political and global economic trends that impact production and supply chains; health and safety conditions and the fair, ethical treatment of workers; environmental and sustainablity issues. Globalisation is also requiring brands to differentiate themselves via optimal business models, geared towards streamlining efficiency, while executing strong social and business values.
In addition the fashion industry has seen fundamental changes in its operating environment:
the pressures to diversify online and to increase accessibility;
the changing consumer landscape and prominence of fast fashion;
the challenges and constraints of addressing sustainability practices;
the impact of the digital era and the multiple channels of communication now available to brands to engage with their consumers;
the challenges to maintain customer loyalty;
the paradigm shift in manufacturing and retailing;
the necessity for optimum inventory management;
the diversification of the industry brought about by modern technology.
These considerations are shaping the 21st century fashion industry. The industry is also looking to see how innovation in a digital age can provide solutions to these complex challenges.
One clear way that the fashion and apparel industry can look to innovate is to see innovation as, by definition, applying to the entire life cycle of its processes: “extraction of raw materials, design and production, packaging and distribution, use and maintenance, reuse and recycling, and incineration and disposal” (Gauthier, 2005, cited in Hansen, Grosse-Dunker, Reichwald, 2009). At each stage of this cycle the industry can harness new technologies and sustainable practices to reduce costs, improve efficiency and sustain profitability over the long term.
Technological advances such as digital technology and automation are already having an effect on the design and supply chain model; the impact of future developments in Artificial Intelligence (AI) will undoubtedly affect this model even more profoundly. The industry as a whole needs to have an innovative mindset, not only to adapt their processes, and buy into innovation for their supply chain, but they must also try to positively influence their own consumers behavior in order to be truly considered innovative.
But as the fashion industry´s lifeblood is creativity and design, it is therefore one of the most progressive sectors to welcome and combine creativity and innovation, particularly if it views sustainability as a key driver for radical change and innovation: “By adding a sustainability perspective in the design process, the fashion industry has the advantage of combining two of its core competences – creativity and innovation.” (Rydberg-Dumont et al., 2010, p.19)
There are major advantages for the industry´s bottom line in embracing globalisation and adopting innovation and new technologies. Globalisation has enabled fashion companies to expand beyond their home markets. But this expansion demands a global business strategy, the inclusion of innovation improvements, a global view of markets and customers and an agile response to economic and political fluctuations.
3. Considerations and effective approaches for a global winning strategy
3.1 Globalisation and brand identity
The fashion and retail industry in 2018 is a tough and competitive environment. Brand heritage and reputation, in the global market, are no longer guarantees for longevity and success. Apparel brands must always find the correct balance between meeting the demand for fast fashion, and over reach and over exposure. Expansion has traditionally been the strategy of fashion brands, seeking to exploit the fast fashion trend in new markets and by increasing their distribution footprint. But breaking into a global market poses challenges. Adjusting to local markets is not always an easy transition and requires careful strategic planning. Fashion brands must be innovative, flexible, culturally sensitive and imaginative in their communications and approach with their consumers. A global brand must take into account cultural, local market conditions in its communications and retail strategy. If expansion is the ultimate goal of a company, then it is imperative to retain the experience and essence of the brand, irrespective of location and its sales point.
Innovative and technologically savvy brands use technology and digital communications to achieve global reach and accomplish unprecedented penetration into global markets. But they also need to navigate political regimes such as in China and Russia and be willing to adapt and evolve their model given the volatility of current global politics and ever changing economies. In the already overcrowded fashion market, brands need to achieve a high level of exposure and develop a culturally sensitive global brand awareness, employing all available exposure tools at their disposal such as global and local advertising, social media coverage, the increase in international travel and current influencer trends. Global brand positioning is crucial for success but this success depends on a critical and strategic analysis of the consumer base, and any cultural, societal, economic or political elements which may impact the business climate where they intend to operate.
3.2 Control of Distribution and Supply Network
Fashion brands, and particularly those in the luxury sector, traditionally followed a deliberately restricted and controlled distribution model. However, with globalisation the model is now changing. Globalisation requires expanding their distribution channels into more and more culturally and economically differentiated markets, requiring adaptation and sensitivity to these markets (Kapferer and Bastien, 2012). This means that they could lose some elements of control, and logistically this degree of expansion creates a greater level of complexity. Stringent controls at every level of their supply network and distribution level are required, if they are to fully manage costs, risk assessment, and to ensure ethical practices across the board.
While globalisation will result in a greater brand imprint, and lead to more opportunities for growth, it can also be risky if not executed correctly. For this reason, fashion companies, particularly luxury brands, must also work to strengthen their identity in the global market over the longer term and be prepared to do a comprehensive footprint analysis, exercise rigid control of all aspects of their supply and distribution network, before undertaking new markets in their global business strategy.
3.3 Customer Loyalty in the Digital and eCommerce Age.
The explosion of the internet, and all its digital opportunities, has led to the exponential growth in eCommerce in the fashion industry, representing 3.4% of annual global sales now, and with forecasts indicating that this will triple over the next decade. (Ahmed, I. Berg, A. Brantbury, L. Saskia, H, 2017) If predictions are correct, the worldwide eCommerce fashion industry will rise from $481.2 B in 2018 to $712.9 B in 2022. (Orendorff, A. 2018)
ECommerce is now fundamental to the success of many fashion brands. But it is also clear that the industry has yet not exploited the full innovative potential of eCommerce, given the opportunities presented by online customisation, digital and social communication, and CRM.
To maintain customer loyalty, however, in the digital age, requires the full exploitation of social media, CRM tools and data, audiovisuals, and the cultivation of personal one-to-one relationships with new and existing consumers. The proliferation of connected devices and growth in connectivity mean that fashion companies now need to have a strategy not only for connecting with consumers but also for utilising their data to create more personalised service and targeted/ responsive marketing.
ECommerce is critical for the growth of the fashion industry and is essential for maintaining customer loyalty in the digital age. The first fundamental of an eCommerce strategy is the development of a brand focused website which offers consumers a seamless shift between their physical and digital stores, while emphasising the same convenience, experience and personalisation customers expect at their bricks and mortar locations. The website will bolster brand equity both online and offline and form part of a fully integrated strategy, which aims to support and strengthen the brand’s core identity, which is crucial to remaining competitive. In addition, brands need to consider other innovations to create a wholly engaging and immersive brand experience. Such innovations within their eCommerce model should include international shipping, support in multiple languages, geo targeting, mobile optimisation, rich media content, services such as ‘click and collect’, automatic detection of a consumer´s location, and then the use of data analytics to create a complete 360* approach.
Choices regarding their ominchannel strategy could potentially be the most important decisions a fashion brand will take to achieve success on a global scale. The global marketing strategy must include not only significant investment in e-commerce, as it is just one part of the digital strategy, but also end-to-end product suite digitalization, social data gathering, consumer engagement tools, content creation, optimisation, and social media marketing. (Kapferer and Bastien, 2012)
Online engagement by 2020 will be most likely and easily achieved via social networking sites, rather than on a brand´s company website, as the shift towards social marketing gathers pace. Social media presence and campaigns on sites such as Snapchat and Instagram, with product photos, videos and celebrity endorsements build an engaged and loyal audience. Other additional strategies to be considered will be the creation of curated content for each target market, more calls to action for consumers which will be not just result in purchases but in sharing, posting and inspiring followers to influence overall consumer behaviour.
3.4 Getting the marketing mix right
Every marketing strategy must now have a fully developed marketing and promotional mix to include digital and social media components and the incorporation of eCommerce into their business model. The global consumer of today is online and connected; fashion retailers need to shift their focus to online and balance direct marketing, relationship marketing and mass marketing.
In the future their marketing budgets will see a greater return on investment via applying marketing automation, investment in CRM and remarketing/ retargeting, to naturally generate more conversions, and increase both the average order value and traffic to stores. Such innovations in digital will allow brands to fully capitalise on the huge potential for growth and avoid any market shrinkage. It is crucial for them to invest more heavily in their digital marketing strategy and be open to all opportunities that digital and technological innovations currently present.
The reality is that brand management is becoming increasingly more difficult for this reason as no stream of communication can be neglected from their marketing mix. Consumers are savvier, more demanding and more influential. Consumer data is everywhere, and exists in many forms via retail websites, social media, blogging and consumer guides, so brands need to always be on top of their brand and product positioning, while harnessing the available consumer information. Brands have to diversify their business models to meet the expectations of the modern consumer. Millennials are prioritizing ‘experiences’ over ‘things’.
3.5 The traditional retail experience is a thing of the past
Given this major change in consumer behaviour, retail brands need to broaden their understanding of the retail experience. It now extends way beyond just the bricks and mortar shop itself, and they need to successfully fuse their online and offline strategies. They require ‘retail intelligence’ to both inspire and influence their consumers.
Visual merchandising is now an effective strategy to maximise the volume of sales. With the formulation of comprehensive visual merchandising plans, retailers provide an attractive proposition to entice customers into stores, and to exploit and maximise both layout and product display, while ultimately driving up sales and capitalising on the return of commercial retail space. It is a vital component of a fashion branding strategy, and when brands within the fashion industry effectively apply the creative and scientific principles of retail design, merchandise will move and profits inevitably increase. (Bell, J. and Ternus, K. 2011).
There will be many opportunities in the future for brands to demonstrate innovation and radical thinking. The industry is bursting with startups developing new technologies to feed consumer desire for instant gratification, offering possibilities for 30 minute drone delivery, greater choice regarding delivery options, customisation and offers for simplified returns. Companies that don’t embrace such innovations will get left behind, and consumers will tire of anything that does not offer the latest conveniences (Arthur R, 2018).
3.6 Technological Innovations
Advances in technology, and the possibilities they offer to the fashion industry are also a big area of focus in 2018 as we look towards the next decade.
Augmented Reality
Integration with technology will be a key strategy that many fashion brands will need to consider as part of their visual merchandising, retail and management strategy. The recent push of AR into the mainstream, and the forecast for 900 million AR-enabled phones to flood the market before the end of this year, means that consumers will come to expect AR apps and AR experiences from retailers. Already, high end stores Anthropologie and Burberry, are using such technology to facilitate the shopping experience for their consumers. (Arthur R, 2018)
The global retail brand Topshop is building more and more immersive innovative strategies into their visual merchandising and marketing plans. They broadcasted their 2017 AW London Fashion week live in immersive 360, allowing shoppers in their flagship store, to take a virtual front row at their catwalks. This year they allowed consumers to experience a giant water slide via VR headsets, through the use of an in store installation. By fully incorporating the latest technologies into their strategy, 1500 people were able to experience the show on-demand in the days immediately following the event, garnering global media attention for Topshop. (Inition, 2017)
In time, however, it will inevitably become more of a necessity for brands to fully embrace virtual (VR) and augmented (AR) reality. AR/VR presents the perfect means for brands to promote and communicate with modern consumers, making it an essential 21st century merchandising activity. It allows for a fully immersive experience, and creates a virtual environment where they can enjoy the essence of the brand at no additional square footage or retail space expense. Also, by utilising the latest VR and AR technology, brands will be fully able to tailor the shopping experience to the individual and ultimately convert more into buying customers, with a deeper brand loyalty. Engaging graphics, video, and flat screen displays will help fashion managers to create a consistent brand image. Innovative digital displays can be changed automatically, to influence buying behavior, and better target consumers in store. Taking up less space than physical merchandising props, brands can benefit from better store layout options, create more opportunities for engagement and improve their bottom line (Carney, 2016).
Virtual Fashion
The next step from there is already on the horizon and a new type of concept store may soon reshape the entire retail ecosystem. Amazon GO, the retail giant’s new store, which will open this year, features a shop floor completely devoid of retail clerks. Designed to create a completely seamless experience for its consumers, they can shop completely unattended at their own pace, without any need for interaction (Uldrich, 2018). By combining this with VR tech, where consumers can visit distant stores and choose any number of options which can then be virtually ‘tried on’, it is not so much of a leap to conclude that bricks and mortar retail may not be around as we know them for very much longer.
Artificial Intelligence and Machine Learning
Fashion is now embracing big data strategy and is beginning to harness the potentials of artificial intelligence (AI). Real time customer insights and machine learning capabilities, offer brands a means to provide more relevancy and customisation to consumers, in areas such as tailoring, personalisation, down to highly individualised messaging and production. Already brands such as Net-a-Porter, Sunglass hut, and Top Shop are including artificial intelligence in their strategy, to increase conversions and engage with consumers on a whole new level. More uptake of these innovations is expected in 2018, and as more and more brands such as Burberry, American Eagle, Sephora, and Tommy Hilfiger, experiment with chatbots, the customer service tools which offer more ‘conversational commerce’, the trend is set to continue. (Jain, 2018)
3D Printing
As the technology improves, 3d printing is influencing the world and starting to now have more of an impact on the fashion sector in 2018. The management of how and where items are produced will inevitably change, if 3D printing becomes a production standard within the industry as is expected. The types of materials that it offers to designers will increase, offering wholly new concepts for design and clothing functionality, endless options for customisation and the ability to make design changes in real time.
Adidas are already producing shoes via 3D printing, with the production of 500,000 planned for 2019. (Uldrich, 2018) Eventually the production will occur closer to the end consumer, meaning the need for global distribution channels and complex logistical planning will no longer be required.
3.7 Social Conscience and Innovation
With the rise of the more ethically motivated consumer, brands must now be advocates for sustainability and the environment. More than 65 per cent of consumers in emerging markets actively seek out sustainable fashion. (Ahmed et al, 2016) The apparel sector´s damaging impact on the environment is known within the industry and its overuse of water and chemicals, as well as its huge contribution to the creation of carbon emissions, is well documented. (Hermes, 2016) Likewise, a research survey conducted by Morgan and Stanley in 2016, which asked 1000 customers in the UK on their views regarding to what degree a company’s ethical practices would determine their shopping habits, there was a 9% increase from 2010, in how they rated ethical practices in terms of importance. Price and quality were still their biggest priority, nevertheless, the data proved that consumers are changing their mindset, with 51% saying that ethical credentials were very or at least somewhat important. (Morgan and Stanley, 2016)
As consumers become more aware of the impact of the fashion industry´s current outdated practices on the environment, brands must be seen to adopt a sustainable approach, and put corporate responsibility at the core of their business model. The impact of their ‘carbon footprint’ should inform all their design decisions, their supply chain considerations and working practices. With growing concerns about the long-term viability of the sector´s current business model and its practices, there is now a focus on the role of sustainability and sustainable practices within the fashion industry.
This realisation has led some in the industry to fully investigate their manufacturing processes, carbon footprint, supply chain model and overall impact. From such an analysis, it is apparent that most brands are required to reevaluate all of their sustainable and ethical practices across their end-to-end activities, to reduce negative environmental effects, conserve energy and water resources, reduce energy consumption, and protect ecosystems. They must look to effective strategies for managing and counteracting their overall impact and take more direct corporate and social responsibility for their actions. Decisions regarding the investment in renewable energy, targets around energy reduction and the introduction of innovative energy saving measures will have to form the basis for the strategic sustainability plans of any company in the fashion industry beyond 2020.
Disruptive technological innovations such as Blockchain applications now allow for greater full control of the supply chain and transparency regarding sustainability. The Blockchain platform allows for the validation of supply chain data, and for a more open movement towards integrating technology into the structure of the company to uphold fundamental sustainability practices. Using this technology, consumers can verify a garment´s origins and companies can know where a product is in its supply chain at any given moment. Inevitably though, there will be different strategic directions and competing priorities within different sectors in the industry, and differing levels of application of sustainable and ethical principles, but as consumers become more aware of the environmental impact of fashion production, and regulations become stricter for companies, informed choices about their practices will have to be made.
For this to work all corporate stakeholders must also be involved and actively engaged in the sustainability model. This must include a top down approach from management, investors, shareholders, to suppliers, workers and customers. The model not only requires personal commitment from all stakeholders but also investment in innovation, big data and a long-term strategy.
3.8 Inventory and Supply Chain Management
In the reevaluation of all their business practices, brands have the opportunity to analyse more deeply their supply chain management.Brands should exercise very stringent stock controls, and understand their market so as to make successful predictions for inventory management; too much stock and retailers risk markdowns which can lead to cash flow problems. A rapid time-to-market concept will only function well if all components of the supply chain, are visibly communicating and cohesive.
Having tighter stock control and market awareness, are vital for overall profitability. Companies need to utilise market intelligence and analytics to make more informed decisions, from concept to consumer, to improve profitability and drive top line growth. Key decisions regarding new product lines and brand extensions, making investments in production and technology, validation of product and market direction, should all be based on consumer and trend insights. Speed to market is also an important consideration. An effective strategy to increase a fashion brand´s revenue is to have the product readily available at the right time for consumers. This limits the risk of markdowns and reinforces consumer loyalty.
Brands should critically evaluate their supply chain models both internally and externally. Having a trusted relationship in their supply network, gives brands an advantage and when brands are open and transparent regarding their network relationship, it leads to greater consumer connections with brands. With sustainability in mind, there are also options for companies to incorporate fully circular economies, into their business models. Retail giant, H&M have committed to being fully circular by 2018 by eventually only using recycled or ethically and sustainably sourced materials. Also with new possibilities for recycling techniques, and increased options for the bioengineering of materials, there are more opportunities for the industry to think about its full supply chain and product lifecycle model. (Arthur R, 2018)
4. Methodological Review: Data Analysis and Review
Data research in the form of a survey was undertaken to test and evaluate prior theoretical research which described the challenges and opportunities technological innovations presented the fashion industry with. The survey tested the impact, in particular of eCommerce on consumer behaviour. The scope of the survey included 103 respondents; however only results from 100 respondents were captured, as 3 failed to completed the survey. Results were collected over a 5 day period, and it was completed online via email and social media.
Research Question 1: What are your ecommerce spending habits?
Hypothesis 1: The theoretical research suggests that ecommerce currently represents 3.4 % of the global retail sales market. This question should demonstrate that already since that data was collected in 2016 (Ahmed, I. Berg, A. Brantbury, L. Saskia, H, 2017) that online sales have already grown as predicted. What is expected is that the trend for online purchases has increased and that more consumers will now be open to making clothing purchases online.
Research Question 2: Do you interact with your favourite brands online. (By interact I mean visit their page, like or share content etc)
Hypothesis 2: Prior research suggests that the omnichannel strategy could be the most important strategy for fashion companies in the future. This question will seek to illustrate the ways in which consumers now want to engage with their favourite brands; being loyal no longer just means purchasing from a brand, but being connected with them online and actively interacting with them on a more regular basis via social media.
Research Question 3: Do you consider yourself to be an ethical consumer?
Hypothesis 3: Figures from 2016, indicated that 51% of consumers consider themselves to be ethical shoppers (Morgan and Stanley, 2017). The hypothesis is that more consumers in 2018 are aware of the need for change, and are taking greater steps to be ethical consumers.
Research Question 4: Do you have a preference for brands that are focused on sustainability when making retail purchases?
Hypothesis 4: The prior Business of Fashion research (Ahmed, I. Berg, A. Brantbury, L. Saskia, H, 2017) suggests that 65% of consumers in emerging markets seek out sustainable fashion. This hypothesis aims to prove that in developed markets, the numbers are on the rise and higher in 2018, than they were when surveyed by Morgan and Stanley in 2016.
Research Question 5: What is your biggest consideration when making a clothing purchase?
Hypothesis 5: It is expected that given consumers are more informed about sustainability that this will be of a priority for some. However it is the view of this report, that the majority of consumers will still choose pricing and quality over ethical concerns.
Research Question 6: What is your view on Brands who are not ethically conscious or sustainability focused?
Hypothesis 6: It is expected that respondents will confirm that Corporate and Social Responsibility is now of greater importance and that consumers now expect that fashion companies, not only take responsibility, but that they have already taken action to be more ethically conscious and sustainability focused.
4.1 Results
Interpretation: Hypotheses vs Results
One of the chief objectives of this survey was to gather data to confirm or reevaluate the prior hypotheses regarding the areas of focus for brands in 2018, when deciding on their plans, initiatives and activities for the future. The data gathered has helped us to make the following recommendations and a strategic proposal for innovation improvements:
37% of consumers frequently buy their clothes online, while 43% stated that they have purchased online, and a further 18% said they might do in the future. Only 2% of respondents said that they would not shop online, confirming the hypothesis that the trend for buying online is growing, and only a very small percentage of the market now do not use a mixture of ecommerce and offline for clothing purchases. Integration of these sources is key, and online convenience for shoppers must be a priority for brands.
This data confirms that bricks and mortar stores are still important given that (43%) of consumers said they still mostly buy from physical stores. While online is crucial to success, the inclusion of new technology and innovation within stores is still relevant to the overall strategy.
The data shows that the majority of consumers frequently (47%) or occasionally (35%) interact with brands online. Based on these results, brands will have no choice but to adopt an omnichannel strategy if they are to remain competitive. This also supports the theory that fashion brands should be investing more heavily in new innovative technologies such as CRM, remarketing and retargeting, content management systems and engagement tools, to ensure they take full advantage of the opportunity and exploit the vast amounts of data being accumulated via their online channels.
When it comes to ethical consumption, figures here prove that 18% of consumers like to know that the brands they buy from are ethically responsible in all areas of their supply chain, while 58% of consumers in 2018 are aware of the need for change and are making efforts to make more informed choices. Retail brands need to adopt a responsible and transparent strategy if they are not to lose market share.
With specific reference to sustainability, 12% are actively seeking out sustainable fashion, while a further 71% said that they take sustainability into consideration more and more. These figures are overwhelmingly indicative of a requirement for a sustainability strategy.
It is surprising that results showed that as few as 2% of consumers said that the brand was their biggest consideration when making a purchase. The hypothesis that brand positioning and brand loyalty would sway clients to remain loyal to a particular brand, may no longer be the case for modern consumers, proving that brands in 2018 and beyond, will have to work harder, and be shown to be more innovative as regards consumers´ concerns and priorities if they are to maintain consumer loyalty. Less surprising, is that 50% of respondents stated quality is the biggest consideration. Price is the second biggest consideration at 33%. Brands will have to exercise strict pricing and quality controls, and tighter analysis of their stock controls and supply chain, to ensure their merchandising and pricing structures are fully in line with consumers’ expectations.
Lastly it can be confirmed that 31% of consumers believe that brands have no excuse not to be corporately responsible in 2018. Only 4% of the market have no concerns on this issue, showing that the trend of ethically conscious and sustainability focused consumers is on the rise.
4.2 Conclusion and Evaluation
The fashion industry is poised to see greater change in the next half decade than it has experienced in the last half century. The changes taking place and the decisions being made in the sector right now, will shape the industry in the future. As we move away from tired marketing ideals, traditional and cumbersome corporate structures, and develop a greater understanding of the effects of mass consumption, fashion companies will need to carefully consider how quickly they adapt to such changes, implement more innovative plans and adopt a fully global perspective.
Despite the challenges, it is the view of this report, that if fashion brands are to introduce the following policies into their global strategy, their global reach and profitability would increase: dynamic innovation regarding all aspects of their supply chain and material selection; full exploitation of the possibilities of digital; the inclusion of modern technologies into their retail and eCommerce structure, and a business that is founded on sustainable, modern practices.
The industry is, however, dynamic in its nature, and in order to stay ahead of the competition, innovation must be at its core. To build a more inclusive, sustainable, ethical, profitable and innovative future, leaders in the sector will need to apply the outlined transformational trends. Their short term plans will focus on digital strategy and sustainability, while in the longer term, they will need to start building their strategies around machine learning in their production practices, a global logistics model facilitated by 3D printing, VR in their retail spaces, and AI in their eCommerce and customer service model. It will take inspired leadership and strategic management for brands to fully adopt all of the outlined plans; however, the payoff will be worth it.
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