What’s next for the fashion industry? The tech startups weaving fresh trends – EU-Startups
The fashion industry has drastically changed in the last decade. While much of the world has moved online, it has transformed how fashion is produced, distributed, and consumed. One of the biggest disruptions in fashion is social media’s dominance. Social media has been adopted as the new form of advertising and the particular main channel to build customer relationships – democratising access to learning about fashion and the latest styles.
Another highlight is the rise of ecommerce. Consumers no longer need to travel to a specific location to shop and purchase products rather they can buy them from virtually anywhere and have products delivered directly to them. The pandemic has even further accelerated the particular adoption associated with ecommerce.
Social media and ecommerce were technologies that some brands plus retailers were initially resistant to adopting, but , we now see that they are embracing these systems to connect with their customers and build their brands.
So , what’s next for the fashion industry? We explore how new innovations and technology are being applied to style and retail. These new technologies are further broadening access to fashion to both consumers and producers plus augmenting client experiences that brands have with consumers.
Live shopping enables manufacturers to sell and promote items through live streaming whereby consumers can interact with brand names in real-time. This is becoming more prominent in the west, particularly in the particular US. It’s been around in the east for some time, like in China where reside shopping has been around since 2013. In Europe, adoption continues to be slower, but it’s starting to cotton on.
Traditional style brands possess hopped onto the live shopping bandwagon. LVMH offers signed a commercial partnership with Bambuser for the group’s labels to use their platforms. Reside shopping startups are enabling brands to power their own live buying platforms such as Bleeker who is working with Galeries Lafayette plus LIVEBUY who is dealing with Lidl and MediaMarktSaturn.
There are also standalone marketplaces that are usually built upon the concept of reside shopping. FINDS is taking a new approach with regard to consumers to buy and sell second-hand fashion using their video and live streaming-based marketplace. NTWRK will be a livestream shopping platform that blends entertainment content and commerce featuring daily episodes plus virtual festivals. Kering provides acquired the minority stake in NTWRK.
Big technology has shown interest in entering live purchasing. Youtube has plans in order to launch a live shopping product. Both TikTok and Facebook had tested live shopping features, however , they have halted the launches of their particular versions of live buying features.
Over the last decade, customers have mainly been interfacing with augmented reality (AR) through filters on social media platforms. By 2025, it’s believed that 75% of the particular global population and almost all smartphone users will be frequent AR users. AR may be transformative to purchasing and store experiences. The technology can simulate a digital shopping experience that is usually almost as realistic as shopping in-store and be impactful in enhancing physical shopping experiences in stores as well. Louis Vuitton, Gucci, plus Bottega Veneta are offering AR try-on. So far, it’s shown to be capable of making a big impact. According to one report, products that will showed AR content have a 94% higher conversion rate than products without AR.
Historically, there offers been a lack of diversity and representation in fashion imagery. This excluded certain segments like people associated with colour plus-sized individuals from being able to relate in order to the products that they are being sold. Augmented reality enables a personalised shopping experience which creates inclusivity and makes fashion more accessible to those who have been previously segmented. Lalaland uses AI to generate virtual fashion models of different body types, sizes, and skin complexions. When customers have a personalised buying experience and can resonate with a model that will looks such as them, these people are more likely to feel more comfortable with purchasing an item and may better visualise exactly how the product will fit them. Customers want in order to be able to visualise exactly how products will fit and become styled on them – this helps to reduce return rates, increase consumer satisfaction, plus return prices.
Augmented reality is also becoming applied to the production and design process. Stitch 3D helps brands like Calvin Klein plus Tommy Hilfiger transition towards a 3D-driven workflow.
Fashion within Web3: Virtual Reality as well as the Metaverse
Virtual reality is a simulated environment where users encounter an alternate universe that transcends physical and temporal boundaries. In recent years, digital reality adoption has significantly increased plus changed just how people socialise. The desire to immerse in virtual reality has already been accelerated by global lockdowns and the outbreak. Examples of virtual reality spaces include metaverses such while Decentraland and Axie Infinity and popular games this kind of as Minecraft and Roblox.
In virtuelle realität settings, customers can create a customised persona via an avatar where they could design their own physical appearance and select how they would like to clothe their avatar – effectively an extension of their own IRL self.
Fashion is definitely catching on in order to the power of meta, including the ability to produce digital-only products also known as “direct-to-avatar” (D2A). There’s the emergence of digital native style designers that defy the particular traditionally high barriers of entry to building a fashion brand such as AUROBOROS who describes themselves as a “metaverse native luxury style house. ” Traditional fashion houses plus brands such as Balenciaga, Prada, and Burberry are also following suit and producing digital product collections. The particular first Metaverse Fashion Week was held this past year, which featured each web3 local brands and notable style brands like DKNY plus Dolce & Gabbana.
NFTs have been buzzing around tech in the last year – they will are furthermore catching the attention associated with fashion houses. LVMH Group is showing signals that they are bullish upon web3 and they have launched various products that will embody that. Tiffany and Co. released a limited collection of CryptoPunks branded jewellery which can only be purchased simply by holders of CryptoPunk. TAG Heuer watches that can display NFTs so users may showcase their particular NFTs on their wrists. Rimowa also launched a collection of NFTs. For brands, web3 technologies can be leveraged because new channels and mediums to link with their clients.
Fashion contributes to close to 10% of the world’s total greenhouse gas emissions plus consumes more energy compared to aviation and shipping combined – making the business a notorious offender contributing to the particular climate crisis. Consumers are usually conscious of the brands that will they are supporting plus their sustainability initiatives. It is reported that 57% associated with consumers have made significant changes to their lifestyles in order to lessen their own environmental effect. The European Commission plans to regulate sustainability within the fashion and textile market in the particular region regarding both producers and consumers as part of the European Green Deal.
There is an introduction of new business models in fashion designed with sustainability as well as the circular economy in mind – this kind of as resale, rental, recycle, and repair. Taking resell as an example to illustrate the particular growth plus potential of recent business models: the global second-hand apparel market can be expected to grow 127% by 2026 .
In response to brand new sustainable company models, manufacturers and retailers are starting in order to offer new after-sale offerings that encourage sustainable consumption. This is certainly often facilitated by partnerships with startups that have got the operational know-how and logistics to power these offerings. The Restory , is a platform that connects customers in order to on-demand aftercare services such as restoration, cleaning, and restoration for luxury fashion. They have both a D2C and B2B proposition and also have partnered with retailers plus brands like Farfetch, Brown Thomas, and Harrods. Selfridges has partnered with startup HURR to offer rental in their London plus Manchester locations. Numerous brand names and retailers such like GANNI, Harvey Nichols, and Axel Arigato have launched their very own reselling marketplaces along with Reflaunt .
In addition to brand new sustainable business models, brands are displaying desire for using innovative textiles to produce sustainable raw materials to reduce the fashion industry’s footprint. Stella McCartney has combined with Collaborative Fund in order to launch the €200M fund to invest in lasting solutions like new materials and supply chains.