Digital Opportunities And Willowy Threats-Prompt Online Fashion Retail Industry: Ken Research
Posted on 05 July 2017 by KenResearch Consumer Products and Retail,
Due to digital development, young generation is shifting towards digital retailing. Therefore, fast fashion brands need to pick up and speed up their digital development. There is a way to future growth because of mobile and social media. There is considerable opportunity for fast fashion players due to move to mobile retailing. Social media also provides a platform for brands, so that they can highlight their personalized services, as it is a very influential platform.
According to the market research report "Fast Fashion in 2016: Digital Opportunities and Agile Threats Part II", to compete with fast fashions, traditional players are increasingly moving to more nimble operating system. For competing the fast fashion speedy USP, look for rapid production strategies and utilization of big data.
Fast fashion industry is not able to build purely sustainable fast fashion company, despite the cycling initiatives and using sustainable raw material. Consumers are easily turning away from the conspicuous consumption trends with a greater awareness of sustainable and ethical practices. With the rise of ethical oriented brands like everyone has shown signs of moderation. As consumer trend moves slowly, giants have performed well to cope up the trends and implement business strategies.
Creative and sales are two elements of fashion industry. Creative involves design and production and sales involve distribution of goods. It is divided among US, Europe and Asia.
Policies and economies are the primary source of threat. Change in government policy can bring some loss to fashion companies and when economy is down, there are restricted consumers and it becomes difficult to make transaction in the market.
New technology is influencing the industry as e-commerce is growing rapidly which is very appealing to consumers as well as to businesses. Many consumers have stopped buying clothes and accessories from physical shops, they have started buying online. Sellers can be retailers and apparel chains, multi-brands web shops or big and small brands. Sellers also use internet to follow latest trend or they also sometimes develop their own styles and preferences. Therefore, internet and social media are the key trends in market. In European countries, the online purchases are made maximum. Europe, North America, UK, Germany, France, Netherlands, Sweden, Italy, Poland, and Spain are the countries with fastest growing retail market in 2016 and 2017.
Social media shaking up the market as well. Social media platforms like Facebook and snap chat are leading platforms in fashion for promotion.
There is increase in demand for faster production and faster delivery. Technology and consumer trend are the main drivers for the demand for ‘need of speed’. It represents opportunities as well as threat. Usage of IT solutions for higher-level sales can speed up ordering, production and delivery process.
Fast fashion industry in terms of social, environmental and economic responsibilities as not perfect as expected by consumers. Toxic dyes, polluting rivers and farmlands are used which are harmful for health. NGO’s are organizing campaign and making people aware about the need for sustainable and responsible business.
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Ankur Gupta, Head Marketing & Communications
ankur [@] kenresearch.com