Implementation should be pragmatic and clearly linked to value generation. After the crisis, financially stable companies may be able to attract top-notch digital talent, including in-demand profiles such as digital-marketing specialists, data scientists, data engineers, user-experience and user-interface designers, and software and data architects. Identify two categories of projects: critical projects linked to core digital and analytics priorities that must proceed as planned or at a slightly lower speed (for example, building a new data lake to enable personalized marketing) and core projects that can be delayed (such as those that don’t enable emergency response). There is more information available than ever before about people’s consumption habits, behaviours, trends and decision drivers. Design your technology stack for faster integration and development, with applications broken down into microservices and isolated through the use of application programming interfaces; use unified DevOps toolchains to enable automation and reduce time-to-market to a matter of hours instead of weeks. A company’s investments in developing advanced analytical tools to steer markdowns during the crisis will pay off almost immediately. Digital transformation is the means by which companies effect organisational change, manage reputational risks and close the gaps between customers’ expectations and the service and experience they receive. Well-defined key performance indicators (KPIs) to measure success. From the use of brainstorming that can be realized through a video call between members of a design team located in different places of the world, to drawing a draft in a digital tablet instead of the classic paper notebook. WeChat – the King of Collaboration . However, investment in Big Data and analytics is wasted if decision-makers receive erroneous insights, or do not have the skills or competencies to convert solid insights into business decisions. Unlocking this information is key to understanding what the mindset of the consumer is now, and is likely to be in the near future. In April, traffic to the top 100 fashion brands’ owned websites rose by 45 percent in Europe. Many fashion brands take a fragmented approach to digital transformation, focusing on digitising processes or isolated functions. For some AF&L companies, even survival may be a struggle. New standards of service and experience are being set, and it is mostly about moving away from being a product brand to becoming one that shapes and implements contextualized, consumer-centric propositions – a brand that considers its entire experience eco-system. Digital clienteling (including leading-edge processes, analytics, technological developments in Digital Marketing, Commerce and Sales & Service platforms) is delivering a personalised customer experience across multiple channels – and ultimately improving conversion rates and revenues. Although no one in the industry foresaw the intensity of this crisis, some fashion companies are finding that they are better equipped than others—largely because of their digital know-how. The pandemic has elevated digital channels as a must-have for AF&L players. But there is an urgency and momentum building up behind digital transformation, as organisations re-imagine, reshape and retool for an era in which traditional boundaries are broken. We expect the online share of fashion and apparel in Europe and North America to increase by 20 to 40 percent during the next 6 to 12 months. Deloitte AG is an affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). Flip the odds. DTTL and each of its member firms are legally separate and independent entities. Companies’ RFID investments typically yield operations simplifications and service-level improvements. The customer’s data is the core component of digital transformation in the fashion industry. 1. As natural resources are dwindling, the cost of raw materials and carbon and financial costs of manual garment sampling and shipping back and forth from manufacturers in Asia to Europe and the US is also increasing. The only way to meet this growing consumer demand is to digitise and streamline … Today, dressing rooms enhanced with  augmented reality  and social media features have … Think data from the start. Given what’s at stake – the brand heritage and identity – it is a very delicate path to tread. McKinsey Chinese COVID-19 consumer-sentiment survey with field work March 21–23, 2020. Digital transformation - getting it right. There’s no denying that the COVID-19 pandemic will make for a difficult 2020. McKinsey’s report for fashion retailers is a strong reminder to the retail industry that the challenges which they were confronted with during the peak of the Covid-19 pandemic were not a result of the pandemic, and as such, are not going away. A digital and analytics transformation is typically an 18- to 24-month journey, requiring an ambitious aspiration, a clear plan, and concrete milestones. Industry analysis & Market Report on Digital Transformation in Fashion is a syndicated market report, published as Global Digital Transformation in Fashion Market 2019. This may be the impossible dream, but advances in clienteling – establishing long term relationships with customers based on their habits - are bringing the dream closer. A digital and analytics transformation is typically an 18- to 24-month journey, requiring an ambitious aspiration, a clear plan, and concrete milestones. This is an ongoing, ever … Nevertheless, it has been a lifeline for fashion brands as stores have been shuttered—and it will continue to be critical during and after the recovery period. The primary drivers for digital transformation are mostly either significant opportunities or existential threats. The health and safety of employees and customers, of course, has been—and remains—the absolute priority. Although time frames remain uncertain for now, AF&L players should start planning how they’ll compete in—and perhaps even influence—the industry’s next normal. The digital transformation in the fashion industry can be recognized in the supply chain and distribution as well. In turn, those were supported by emerging tools of design and manufacturing, new … Here are five examples of how it’s actively shaping the future for designers and customers alike. In light of crisis-related sales decreases, cutting costs is an obvious imperative for most companies. A clear road map and prioritization of initiatives, combining actions that help set up the enablers for the organization with the implementation of use cases that generate quick wins. Reinvent your business. It has proved even more valuable in subsectors with more stable and predictable purchasing patterns, such as beauty products. The fundamental enabler to all this will be data—the transparency, governance, and accuracy of which have never been more important. 80 percent in offline and 30 to 40 percent in online in Europe and North America, even in countries that haven’t been under full lockdown. In our experience, successful digital and analytics transformations have the following elements in common: The first step in the transformation program should be the definition of digital priorities, which will differ based on each company’s business model and digital starting point. Learn more about cookies, Opens in new 1 Integrate personalization into all delivery channels to ensure consistency in your customer communications. Some retailers have redeployed store personnel from closed stores to support online fulfillment or to assist consumers via digital call centers. Seek to eliminate points of friction in every part of the online customer journey—for example, by improving your website’s search function and expanding your online assortment. Today, dressing rooms enhanced with augmented reality and social media features have … Today, dressing rooms enhanced with augmented reality and social media features have … Companies without one can launch a basic online platform in 10 to 15 weeks. Sometimes it may even focus on just one area, such as Marketing or Sales – with limited or very slow returns. Digital and analytics leaders outperform their competitors in total returns to shareholders. Their designers and merchandisers can react faster to market trends, significantly reduce both sample costs and time-to-market, and collaborate remotely across teams. For some fashion brands, it might remain true that geographical location is still the cornerstone for capturing offline retail demand, but a key enabler for success will be to ensure a consistent omni-channel consumer experience that encompasses physical, virtual and emotional aspects, from communication to conversion and beyond. who tend to buy in the categories where you have the largest inventory buildup, and give online customers coupons to redeem in-store once physical stores reopen. 02. A fundamental challenge for many fashion brands is that, increasingly, they lag behind consumers’ expectations. Reputational risk - protecting the brand in times of change, Digital transformation - getting it right. DTTL and Deloitte NSE LLP do not provide services to clients. Digital upends old models. If you decide to send consumers relevant content, be sure to do so in an appropriate and empathetic tone (for example, a global sports-apparel player now offers yoga lessons on Instagram). 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