Digital transformation is essential to the growth and longevity of any business, and fashion businesses are no different. In 2021, we face a tipping point where only the most agile of brands and retailers can succeed.
You only have to read this quote from John Chambers, the former executive, and CEO of Cisco to realize the transformative crossroads currently facing businesses:
“At least 40% of all businesses will die in the next 10 years if they don’t figure out how to change their entire company to accommodate new technologies”.
It’s no wonder that Chambers thinks this, with recent studies showing that only 43% of business managers agreeing that innovation is essential in beating the competition (according to VisionCritical).
However, it seems as though some are beginning to see why digital transformation is so essential, with a McKinsey report finding that 80% of business executives believe that their current businesses models are at risk and a further 84% think that innovation is a crucial factor of their growth strategy.
So what are the three biggest digital transformation challenges faced by fashion businesses in 2021?
- Legacy supply chains
For any business, legacy systems can be a significant drain. Failing to let go of legacy business models that perhaps were once a vital asset continue to hurt brands and retailers to this day.
For example, look at Kodak, who invented the digital camera. They decided to not move forward with the revolutionary idea straight away, out of fear that it could hamper the success of the traditional film industry. If Kodak acted sooner, they could have become pioneers in this area, rather than play catch-up once it took off.
In a recent interview, KornitX General Manager, Andrew Talbot said:
“I often think of the analogy: If my favorite football club wins a tournament, then I’d like to be able to buy merch to celebrate this immediately – this is possible with a digital transformation business model like on-demand production”.
2. 25% all clothes are produced go to landfill
Yes, you read that right. 25% of all clothes produced end up in some form of landfill. In a world where sustainability is something, we are all encouraged to promote and advocate for, finding solutions to this enormous industry-wide problem is essential.
Luckily, the solution is here. On-Demand production enables retailers to only get products manufactured once they’ve been ordered by the end consumer. This obliterates the traditional method of manufacturing, one that would have otherwhise led to huge numbers of excess waste.
3. Exploring risky, new product areas
That one product line your brand really wanted to produce but couldn’t be certain that it’d sell well? Solved. With on-demand production, exploring new trends and business areas is something that can be encouraged, rather than feared. It enables supply chains and slashes the risk of holding mountains of stock that risks being unsold and ultimately ending up in landfills (as mentioned in Challenge #2).
This disruptive business model is shaking up supply chains using game-changing technology. Brands and retailers are harnessing KornitX, the world’s first operating system for on-demand sustainable production.
As 84% customers feel that it’s important the company they buy from is innovative, it’s never been easier to embrace a fresh and future-proof solution.
The time to get started is now, what are you waiting for?