The apparel industry faces unique challenges when it comes to making data-driven decisions. Perhaps no other industry is as dependent on the whims of consumer preferences, which change from season to season – or sometimes even within season. What’s popular one year is often not in fashion the next, making it difficult for organizations to forecast.
But just because it’s difficult doesn’t mean it’s impossible. The right analytics approach can help when it comes to inventory, and it can help an organization make decisions in many other areas as well. Here’s what’s happening in the apparel industry, and how analytics can make a difference.
Fast fashion is out of fashion
This year’s annual executive summit of the American Apparel and Footwear Association, held in early March, was titled “Trust & Transformation.” Like many other industries, the apparel industry is working to maintain the trust of consumers as it transforms in order to move forward. That transformation encompasses many aspects of a business, from technological advances to environmentally safe practices.
One area where the apparel industry is particularly focused when it comes to sustainability is fast fashion. The fast fashion industry is responsible for a large amount of waste, as customers who don’t pay much for items in the first place don’t wait very long to throw those items away. Industry experts have warned for years that the fast fashion trend will fade as consumers become more sustainability-minded. In addition to longer-lasting products, there is a push from lawmakers at the state level to have apparel companies be responsible for the end-of-life cycle of their products. This could include recycling, take-back, or systems for reuse or repair.
Data in the apparel industry
Some of the state legislation involves supply chain mapping to provide full transparency into a product’s life cycle as well as to ensure humane working conditions at all levels. Information about the supply chain is just one of many points of data gathered by the apparel industry to make business decisions. Organizations can also collect data on customer sales through loyalty programs, point-of-sale systems, and surveys. While some trends cannot be predicted, apparel companies can compile all of the available information to make informed predictions about what kind of inventory to stock or what kinds of deals to offer customers to increase sales.
The right analytics solution
Organizations can only make data-driven decisions, though, if they have the right analytics solution to help them make sense of the data. The better the tool, the more quickly an organization can identify a shift in consumer preference. This can apply to industry-wide trends, or it can be scaled down to the individual level. Depending on the focus of the data, a company can zero in on how it markets to a particular shopper or it can make decisions about inventory as a whole.
One result of personalization is a better customer experience, which is another area where apparel companies are constantly gathering data. That data can help with sales and increase customer loyalty, but combining the results from individual customer interactions can help contribute to predictive data.
There is an endless amount of data collected in the apparel industry. All of that information is not worth much, though, without a plan for how to use it and an analytics solution that allows decision-makers to use the information to help the business. It used to be important for apparel companies to only be on the cutting edge of fashion. Now, in order to keep up with or stay ahead of the competition, they also need to keep pace with technology, particularly analytics.
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