WEEKLY THREAD: BREAKING THE CULTURE OF FAST FASHION AND DISCOUNTING WITH DIGITAL TECHNOLOGIES
“Fast Fashion has created its own demise - an unsustainable culture of eternal discounting and too much product. In its quest for survival over the years the industry has become season-less, and in doing so the consumer has become accustomed to product diversity - a never ending selection of new offerings” - Debbie McKeegan
Breaking the Culture of Fast Fashion and Discounting with digital technologies
The fashion industry has for a long time been trading on quick sand, stuck in an eternal loop offering more, more and more, sold for less.
Corona isn’t the reason that the Fashion Industry is broken, the system has been sinking for a very long time.
Fast Fashion has created its own demise - an unsustainable culture of eternal discounting and too much product. In its quest for survival over the years the industry has become season-less, and in doing so the consumer has become accustomed to product diversity - a never ending selection of new offerings. As a direct result, margins have fallen, and alongside product diversity inventory has grown and increasingly become an issue, forcing the Fashion industry further and further into to Asia to stay viable. Lengthy supply chains are like icebergs, they take time to thaw, and the industry doesn’t have time to play with…Fashion needs to Flex!
Brands that are agile have some comfort in this on-demand culture, but for those that are not, the future is uncertain.
They must adapt or disappear! Browsing is a past-time, seasons don’t exist…the “see now buy - now culture” is established and here to stay. We need to re-define Fast Fashion.
Over the last 10 years the industry has begun to embrace digitisation, in the first instance via ecommerce with many success stories. The most successful of which are new business models, built for online sales without the burden of bricks and mortar retail stores. Online has its own issues for successful retail, and is burdened by high returns, but with an incredibly powerful advantage - DATA.
Data is the magic button, the crystal ball for production.
As technologies advance in the online sphere every search, transaction and abandoned cart gives clarity. It allows the online retailer to engage with the consumer instantly, understand their behaviour and focus on sales at full margin.
Amazon is a grand master for online sales from which we can all learn.
As its imperial growth continues, the real value is hidden within the data that the platform mines from every online search that the consumer makes. Tracking every click, the Amazon model builds a unique profile for every visitor. With a digital DNA of the consumer this enables their algorithms to upsell on behalf of its stakeholders. Delivering a personalised experience for every transaction, and in doing so engages the consumer by making life easier. In an overcrowded, online world the consumer is short of time, and expects simplicity. Amazon is primed to become a significant platform for Fashion, having built its sales on consumer goods and essential staples, the architecture is set and ready for adoption.
So what if we could accurately predict demand? -
Data offers a vital role in the future of Fashion. Regardless of platform we must all get to know our consumers better, we have to get closer to the transaction. We have to deliver products that are tailored to the consumers expectations. Omni-channel retail provides a vital link between the consumer and the bricks and mortar store. With an online presence every brand can get to know their consumers better, and deliver a personalised, luxury service regardless of the sale value. Retaining brand loyalty is essential to growth, the relationship with each customer is paramount. Post-Covid retailing must be intelligent and targeted to succeed.
Data enables the sustainable production of all products, regardless of Industry sector.
Whether we customise the experience or the product, the sale is validated by the consumers experience. If we get closer to the consumer we break the culture of discounting, increase profits and reinvent the Fashion industry.
