What:  The first tech edition of the annual State of Fashion report from the BOF.

Why it is important:  Digital transformation is a strategic step, but also comes with a complexity that leaders must apprehend. This report is quite helpful in having the broader perspective and understanding of what is going on.

The Business of Fashion takes stock on what is going on in fashion from the technological perspective, in a context of acceleration (brands are expected to invest 3 to 3.5% in technology in 2030, from 1,6 to 1,8% in 2021). It explores all the key technologies, ranging from AI, machine learning and big data, to blockchain, cloud computing, digital workflows, IoT, RFID, robots and zero trust security. It identifies 5 key trends to look at:

• Metaverse reality check: even though the Metaverse is still more hype than actual business, the BOF expects the market to soar and advises brands to decide where to engage and prepare for the long term by having a foot in the door. 5 dimensions can be used: digital assets (NFTs…), digital experiences, gamified experiences, platforms and virtual worlds.
• Hyper personalization: 71% of consumers expect brands to deliver personalized interactions and are frustrated that this does not happen. AI, big data management, cloud computing and customer data platforms are all here to increase brands’ capability to develop specific models, scale them and establish personalization as a core capacity.
• Connected stores: 60% of customers still want to shop in stores, post-pandemic. Stores remain central in the brand set up, however they have to be on par with the expected experience, especially in terms of technology. Cloud computing, last-mile optimization, RFID, stock optimization are all here to optimize operations and make sure that they are efficient, fast and at the lowest cost possible. The keyword here is to bridge online and offline, of course.
• End-to-end upgrades: integrated digital processes throughout organizations are the top area for digitization. The upsides are numerous: a potential 50% increase in speed to market, up to 8% rise in full-price sell through and up to a 20% decline in manufacturing costs. To achieve that, again, AI, ML, big data, cloud computing and digital workflow are all here to help calibrating instincts with analytics, prioritize journeys and focus on change management.
• Traceability first: Reducing emissions in the supply chain is critical, but can be complex when suppliers are indirect. A centralized system for metric calculation, data collection and supply chain traceability is therefore crucial, and this goes through big data, blockchain, product passports and RFID.

The state of Fashion, Technology edition