Forbes India – Metaverse, connected stores, tracking: technology introduced in fashion transformation

In a report on the state of fashion, McKinsey and The Business of Fashion outlined areas where the fashion industry must act to “maximize its technological resources.” Image: FotografieLink / Getty Images

J.The pandemic has accelerated the digital shift in the fashion industry, with the advent of online shopping, virtual shopping and even social media shopping, as well as the emergence of the metaverse. And this is just the beginning. The new report shows that fashion players will double their investment in technology by 2030 to optimize the customer experience and respond to the challenges of climate change, with personalization, connected stores, new digital worlds and resilience as key axes.

2020 was a turning point in terms of digital interaction. The pandemic has greatly affected the time spent in front of screens, which has increased dramatically, especially among the youngest, changing consumers’ shopping and interaction habits, which are more attracted to social networks, games and new virtual worlds. And key players in the fashion industry, in all segments, from fast fashion to luxury, are taking into account, multiplying projects and initiatives based on technological innovation. Online shopping, real-time shopping, NFT, digital fashion and virtual fitting have defined the shopping habits of customers of many brands and fashion houses. Fashion brands have even experimented – perhaps a little prematurely – with the opportunities offered by the first Metaverse Fashion Week last March.

Although these transformations already seem to represent significant changes in the industrial landscape, they can only be a precursor to a real fashion revolution, according to a report by McKinsey and The Business of Fashion. It is expected that in the near future, fashion companies will invest significant, if not record, amounts in technology, rising from about 1.6-1.8% of revenue in 2021 to 3.0-3.5% in 2030, almost doubling less than in decades. These figures underscore the importance for brands of integrating technological innovation, from artificial intelligence, to help “maintain sustainability as well as create an exceptional customer experience,” the report said.

Integration of digital processes, personalization and stability

In a report on the state of fashion, McKinsey and The Business of Fashion outlined areas where the fashion industry must act to “maximize its technological resources.” The meta-universe through NFT and digital fashion tops the list, but the analysis highlights an important point: “The marketing value of digital fashion and non-collapsible tokens (NFT) can now be understood. , but fashion brands will need to separate specific opportunities to generate stable revenue streams from the noise.

While brands are rushing into these universes with a seemingly endless stream of initiatives to win over young consumers, several polls show that this demographic is not yet fully convinced. The goal of brands will be to target initiatives that can change the situation. “Fashion companies focused on innovation and the commercialization of the metaverse can generate more than 5% of their virtual business revenue over the next two to five years. However, the task of decision-makers will be to focus on concrete opportunities. “

It could also be an increasingly personalized experience, using artificial intelligence, in particular to improve the relationship between brands and their customers, as well as to increase their loyalty. It could start with online shopping, but the report says it will continue in stores to offer more connected physical locations. “Fashion leaders can solve consumer problems by using mobile apps in stores to improve store performance and micro-execution technologies to use the store in the fast-paced era,” experts say. The general idea is to reduce the gap between physical and virtual stores and make them complementary.

Technology will also have to be used more for more sustainable and transparent fashion, in response to more demanding consumers to these issues. “Tracking systems based on tracking software and big data will help fashion brands penetrate deep into their supply chains to understand the entire life cycle of their products.”

Whether they are dedicated to creativity, skill, sustainability or shopping experience, technology will become an integral part of the consumer fashion shopping process in the near future. Now the question is how brands will implement them.

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