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Data has set its own runway to disrupt the fashion industry.
Every outfit and accessory worn on a fashion runway today has some form of data that has been derived to get it there. Data is transforming how the textile industry functions. Data analytics in the fashion industry is helping companies improve the supply chain, increase personalization in customer experiences and enhance their business practices.
Let’s dive deeper into how data analytics is reshaping the textile and fashion landscape.
If you look at the minute aspects in the holistic scale of the supply chain in the textile and fashion industry, it’s mind-boggling. It starts from a piece of cotton that gets plucked from the field and is brought to life by woven into a fabric. Next, a designer gets their hands on the fabric and makes a draft sketch which takes several back-and-forths to come into actualization. Finally, the decisions are made with data drawn from various sources, and the cotton piece reaches its epitome on the runway, being showcased in full glory.
Data plays a part in streamlining the whole process, from sourcing the raw material to finished product distribution. Predictive analytics enables companies to forecast demand and supply. This ranges from the type of fabric to the color of it as well. Inventory levels are optimized, minimizing waste and improving efficiency.
The supply chain is dictated from the start through predictive analytics to accurately forecast demand and provide customers with their preferred fashion styles.
Pro tip: Make the smart move and leverage data analytics for unmatched success. Schedule a free consultation with our experts and discover how advanced data analytics can revolutionize your operations.
This fast-fashion giant leverages data analytics. They quickly respond to customer preferences and adjust their inventory accordingly, leading the world of fast fashion. Zara has used data to reduce lead times and minimize overstock, resulting in increased efficiency and profitability.
Building onto the previous discussion of Zara, they have effectively started to provide personalized experiences to their customers. Zara approaches this by providing fast fashion options that quickly change trends for their customers, which leads to increased customer retention.
Another method for personalizing experiences is by analyzing customer preferences and behavior. Everyone has their own taste in fashion that they tend to bank towards (specific colors, styles, and products). Companies leverage this data by showcasing more of the products for the customers’ liking. This gives the customer a personalized experience as they see a variety of items, all of which they like. In turn, they’re more likely to buy from these products. In essence, the probability of a customer making a purchase increases when you only show them products they like.
This is an effective method to increase sales and customer loyalty.
Fashion changes almost every day, and data-driven fashion is the future.
A significant event like the MET Gala changes how people want to style themselves, making fashion companies race like a Formula 1 team. Data analytics provides valuable insights for informed pricing, marketing, and development decisions. Companies embracing a data-driven culture can expect the following:
A study by Mckinsey found that fashion companies that leverage advanced analytics can achieve significant business growth across multiple key metrics.
In yet another report, Mckinsey tells us how “fashion companies that have harnessed the power of data to personalize customer e-commerce experiences have grown digital sales by between 30 and 50 percent.”
Such insights into customer segmentation and pricing strategies give companies an edge. Rather than test and trial, they can make decisions and have a higher probability of working out. Data is something that gives the textile industry tools to unlock a more effective business and improve its organization practices.
The fashion industry cares most about what customers say or feel. Text & Sentiment analytics helps companies know almost exactly what opinions customers hold about their products. Through these forms of data analysis, brands can:
Fast fashion isn’t going anywhere. The only change that will come is the change in diversity in fashion which only burdens the textile industry to keep up with demand and variations for customers.
With such a massive pool of people now being analyzed, fashion retailers are increasingly using data analytics.
E-commerce has brought the window-shopping experience into the palm of our hands. With this ease of availability, there is a paradigm shift in retail and e-commerce experiences driven by the power of data analytics. The way businesses use data analytics to guarantee project success is all about how they use data.
By harnessing the wealth of available data, forward-thinking companies can unlock a myriad of opportunities:
The textile and fashion industry has a dirty stain on their hands: wastage. Fast fashion and the need to keep up with the ever-changing customer demands have led companies to focus more on how to keep up with demand than on how to cut down on wastage.
Fabric is lost during creation; that isn’t a surprise. The scary thing is how much textile is being wasted in landfills because of fast-changing fashion.
According to a report by Ellen MacArthur Foundation titled "A New Textiles Economy: Redesigning Fashion's Future:
“Overall, one garbage truck of textiles is landfilled or incinerated every second. In addition to these significant value losses, high costs are associated with the disposal of clothing.”
As the world grows more sustainable, the textile and fashion industry is also taking note of this. Some ways in which data analytics contributes to sustainability include:
Data analytics is poised to change the way fashion and textile industries work. Technologies like virtual and augmented reality are being developed to go to an extreme level of personalization for customer experience. Machine learning and artificial intelligence can also help with forecasting, allowing companies to stay ahead of the curve and meet ever-changing consumer demands.
Lucky for you and our existing clients, we are fully geared up for it. We believe that data helps businesses tread on a safe path, a path that ensures business gains. Businesses that harness the power of data analytics will achieve greater efficiency. However, in times like these, we ensure that we prioritize our values. We urge everyone to do the same. Achieving business growth should not come at the expense of the environment and our future.
Let’s join hands towards efficiency and business gains, but let’s also join hands towards a sustainable future!
Our analytics solutions are tailored specifically for textile manufacturers, ensuring that you get the most relevant and actionable information to drive your business forward. Don’t miss out on the opportunity and contact us today!
Fill the form and discover new opportunities for your business through our talented team.
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