Emerging trends in Apparel

MARKETING
Supply Chain Management
&
PRODUCT INNOVATION
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Style
BioGlitz
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Scalable
Circular
Garment
fashion
Technologies

Reverse
FLOCUS
Resources

PRODUCT
Provenance INNOVATIONS Frumat

Planet Good on
Care You

Mango
PAPTIC
Materials
Orange Nano
Fiber Textile
 Mosquito Menace No More: Indore
Couple Make Insect-Repellent
Clothes For Kids!
The patent-pending ‘armour ’ tech
also makes the fabric anti-
microbial and anti-bacterial.
Moreover, it can be used to treat
curtains, bed linen, and
upholstery!
Source: https://www.thebetterindia.com/175454/indore-couple-innovation-
mosquito-repellent-clothes-india/
 Two
fragrances in
one
Deodorant
 TECHNOLOGY’S IMPACT ON
FASHION AND RETAIL
 AI (Artificial Intelligence) is the most pioneering
technology helping brands and retailers with predictive
forecasting, capacity planning and merchandising while
improving product availability and faster, more accurate
deliveries.
 AR (Augmented Reality) is helping online shoppers with
buying the right look and size by a smart blended reality mirror
overlaying clothes on to users. A genius tool that further helps
online retailers to reduce the number of returned items.
 Blockchain is a new digital record guaranteeing product
safety, authenticity and ethical standards as records cannot be
altered once added to the blockchain. Consumers can rest
assured where and out of what material an item was made,
who it was made by, the conditions they worked in and how
much they were paid.
 Contactless payment integration with smartphones, smartwatches
or smart clothing is simply convenient and prevents theft. The first high-
tech automated convenience stores in Asia even require no checkout, no
cash and no salespeople.
 Facial recognition technology is used to pay for products 0r to
identify varying levels of customer satisfaction. But it can also provide
insights on consumers’s purchasing decision process by identifying
individuals and developing personalised experiences for them.
 Voice interface like Apple’s Siri, Amazon’s Alexa, Microsoft’s Cortana
or Google Assistant are all inspiring representatives for the voice-based
interface! Voice user interfaces are creating a new paradigm for human-
computer interaction whereas  in retail it would be a new form of
conversational commerce – simply more efficient,  frictionless and
convenient than typing.
 Visceral experience is in contrary to digitally enabled experiences
both online and offline, more physical and will be back in focus. Fashion
brands and department stores especially, will need to create places or pop-
ups that offer consumers authentic emotional connections and experiences
engaging body, mind and soul. It’s all about community, entertainment
and education, whether that includes tech or not!
 Latest fashion and textile
innovations at a glance

 Duo skin:
The MIT Media Lab has
developed a smart tattoo with
built-in chip and mini-sensor
for self- sticking. This will turn
our skin into a touch screen,
mood barometer and transmit
data.
Elastic Illuminate
Bacterial Solar Textile
Textile d Virtual
Textile Power Hacke
Displa Dyes
embroider Fashion
Fashion y r
y
 3 D Printed Interactive All-rounder
Fashion Fashion Sneaker

Source: https://www.textiletoday.com.bd/category/innovations/
ALGAE APPAREL
Textiles with newly developed fibers that are biodegradable
and can be turned into eco-friendly dye.
MACRO ECONOMIC FACTORS DRIVING
APPAREL AND RETAIL BUSINESSES
Trends in the Indian fashion industry
 India’s fashion retail market to grow to US$115 billion by 2026
(about 7-8% of global fashion)
 Indian consumer do an American or a British.
 Fast fashion is exploding in influence;
 Indian shopper becoming
 open to the global scenario

 shifting to value-for-money fashion,

 aligned with the latest global trends.

 People no longer consider apparels as a durable item, to be shopped

seasonally; instead, they are now chasing latest trends and hunting for
bargains.
 Clothes are seen as disposable

 New options sought with filled wardrobes and closets.

Some statistical data

 Indian shoppers spends on apparel help it grow

nearly threefold in last decade
 The market for apparel in India grew at a CAGR of 13.8% in
FY18, according to a report by CARE ratings
 Women’s wear contributes almost 38%, and is largely
dominated by ethnic apparel such as sarees, and suits
 20% of apparel is still bought in the country’s top metros
 With 41%- men’s clothing continues to constitute to be the
biggest chunk
 kids wear at 21% becomes the fastest growing segment
 half the country’s population is under 25—and
ease in accessing brands is helping consumers
buy more clothing.
• In the last decade, top foreign
retail brands such as H&M, Zara, • Increase in local,
Forever 21, entered India to home-grown
capitalise on the growing ethic wear
demand for fashion. brands such as
• Japan's Uniqlo is set to enter W, Biba,
the market later this year. Manyavar.
• Zara and H&M have already • Introduction of
crossed Rs1,000 crore in
designer labels
turnover in India.

• Smartphone Searches Improved by 18.1%

• Online Ad Spends Have Increased by
33%
CHALLENGES FROM FASHION MARKETS
FASHION IN INDIA

RISE OF FIT CUSTOMER AND

WEARABLE FASHION

EMERGENCE OF FAST FASHION

VIABLE ECO-FRIENDLY PRODUCTS

PREFERENCE TO PRODUCT
PERSONALISATION
DIVERSIFYING PRODUCT
SEGMENTS
So scope lies where?

 Researching whats’ clicking in the world and what I can

do …or be upto? (SWOT)
 Does the above matches to my brand identity and value
preposition?
 Make or buy decision?
 Distribution strength and channel identification
 Athleisure-the new focal vertical

 The global athleisure market is poised to become $ 350 bn

by 2020.

 Used by 28% of US population and is set to double, to reach $ 83

bn by 2020. (fading’ apparel category like denim, which

accounted for $ 15.6 bn in the U.S last year)

 India to rise at CAGR of 13.9% in the global "active-wear" market.

Industry estimates Athleisure as a category that’s growing
faster than the rest of the apparel categories.

-(Allied Market Research report- 2018)

 There is growing health awareness amongst Indian
consumers and an increase in consumers taking up fitness
activities such as aerobics, swimming, running, and yoga

Indian Brands Like Brands such as Fitz, Monte Carlo and

Black Panther

International Brands like Adidas, Superdry, Asics and

H&M

HRX, a fitness wear line introduced

 The biggest growth barriers
 Lack of high-quality polyester manufacturing
facilities.
 More than 90% of synthetic fabrics used by domestic
and international players in India are imported from
China, Korea & Hong Kong. 

What needs to be done

• Educating manufacturers on different blends

of fibres, improving technical skills and
focusing on developing the required resources
 Unique Selling Proposition
 Define your target audience
 Look through the eyes of your shoppers and
customers
 Get to know your shoppers’ needs and desires
 Conduct surveys
 Create compelling content

Although OLD but highly relevant concept.

It gives shoppers a specific reason to visit your brand and buy
your products
Creates an open relationship by telling everyone what they can
expect from your brand.
THE MARKETING CHALLENGES
• Product Designing to International
Counterparts and Standards

Customer Core : Sell

RoI Acceptance Fashion through
Risk risk merchandise Risk
mix risk

• Distribution & replenishments

• OMNI CHANNEL RETAIL
• The issue of look and feel
• Quality deliverance
• CRM
• Customer Feedback mechanism & RFM analysis
• Staying relevant to customers with product offerings
 THE MARKETING CHALLENGES

 Pricing: from top to bottom (cost plus) pricing to

customer perceived pricing.
 Keeping the 3.5 - 4 times multiplier being a challenge.
 Production: industry lead times of 90 days another
challenge.
 Quality control: Not only to meet the customer
requirements but retail the brand aspirations too.
 Competitive edge: Not only to outsmart the
competition but consistently outsmart them on
product and service deliveries.
OMNICHANNEL RETAIL

 60 percent of millennials expect a CONSISTENT EXPERIENCE from

brands whether they interact online, in-store or via phone (SDL).
 73 percent of customers shop across multiple channels (
Harvard Business Review).

 48 percent of customers tend to share their information for more

personalized experience (Deloitte).
 86 percent of customers are willing to pay up to 25 percent more
for products and services just to have a better customer
experience (Omnisend).
 When an e-commerce marketer used 3 or more channels for
communication workflows, their campaigns outperformed 1-
channel campaigns in engagement and purchase rate by over 250
percent (Omnisend).
 Brands with strong omni-channel customer engagement have an
89 percent customer retention rating, compared to 33 percent for
brands with weak omni-channel engagement (Aberdeen Group).
OMNICHANNEL RETAIL

 Customers who have an omnichannel experience spend 13

percent more online than those who only use one channel (
Omnisend).

 40 percent of consumers purchase more from retailers that

provide a personalized shopping experience across
channels (The E-tailing Group).

 37 percent now expect to be able to contact the same CSE

regardless of which channel they use and 47percent expect
to be able to return goods/purchases through a different
channel than the purchase channel (Zendesk).

 87 percent of shoppers think companies need to put more

effort into providing a seamless user experience (Zendesk).
SCM-the arising challenges

 The supply chain for apparel companies is often

faced with unique challenges resulting from
internationalization, advancement of the
trend cycle and consumer demand for quality
and transparency.

 There is also the need to reduce losses and

increase profits amidst an increasingly competitive
fashion and apparel market.
 The direction indicators

 biggest challenges fashion companies are likely to face in

the coming years is the digitization and improvement of
the supply chain. 75% of the executives examined

confirmed that Artificial Intelligence (AI) will be

implemented in some divisions of their companies' supply
chains.

 The implementation will be expected to achieve increased

flexibility in this new, fast-moving era.
 Competitive edges in form of
 Designer’s creativity coupled with Computers.

 Modern softwares (with data monitoring & analytical

predictability / interpretation capabilities) and swift data
analysis

 Not to chase economies of scale but efficient and coherent

delivery mechanisms (learnings from Zara) with lesser lead
times and faster inventory turnouts.

 Global payment facilities.

Focal areas in SCM

 Supply chain finance

 Procure-to-pay automation

 Supplier collaboration

 Supplier pack and ship

 Transportation management

 Supply chain visibility

 Disintermediation and single service providers

Changing business ideologies

 The historical top-down approach to business is giving

way to an emerging bottom-up approach that is driven
by consumer preferences. This is placing stresses on
fashion supply chains which the industry can only
address by adopting a

 collective,

 collaborative,

 ecosystem-driven approach to innovation.

Lessons from Inditex (Zara)

 Inditex is seeking to integrate online sales with its

bricks-and-mortar network by focusing on large,
attractive stores where customers might try on items
to buy later on computers or smartphone
 In Feb’18, the firm hired Sergio Alvarez who co-
founded CARTO, a start-up focusing on location
intelligence, to work in its online business.
 Inditex has worked with its alarm provider, Tyco, to
incorporate a tiny micro-chip into security tags
carrying style and size information about the garment
and allowing the company to locate its whereabouts
at any point in the supply chain. (Aka RFID)
 Full integration between store and online stock rooms
Source: http://static.inditex.com/annual_report_2013/en/sustainable-model/value-
chain.php
 Need of the hour for SCM

 Disintermediation
 Vendor identification and control
 Significant reduction in lead times
 Merchandise mix execution
 Oddment management
 IT support mechanism and networking
 Logistics and customer servicing
 Labelling, packaging and legal compliances
 Reverse logistics
 Differentiation of apparel products
according to fashion degree
Criterion Fashion High-fashion
Basics
(fashion degree) articles articles

Little new Regular new Continuous new

Innovation product product product
development development development
Length of life-
Long Short Very short
cycle
Demand
High Low Very low
predictability

Sales risk Low High Very high

Utility is most Fashion trend is Fashion trend is

Focused aspects
important most important most important

Replenishment Replenishment Replenishment Replenishment is

potential possible is limited impossible

Source: Based on Quick et al. (2010), Fissahn (2001) and Hoyndorff et al. (2010).
Production/
Make- to-stock Make- to-order
delivery
strategies strategies
strategy

•Quick Response (QR)

•Continuous Replenishment
(CR) •Quick Response
•Collaborative Planning, (QR)
ECR application Forecasting and •Collaborative
Replenishment (CPFR) Product
•Vendor Managed Development
Inventories (VMI)
•Consignment Warehouses

•Classical seasonal
•Never-out-of-stock (NOS) order business
Order/delivery delivery •Key customer
models •(Warehouse stock-based order business
delivery) •(Warehouse stock-
based delivery)
DESIGN THINKING PROCESS