How technology is changing the face of fashion in 2024

Rewind to the year 2000, and you wouldn’t be able to imagine a world in which virtual changing rooms, mobile apps that give you styling recommendations, and lab-created, sustainable materials, will become a reality. Look no further than the National Retail Federation Expo 2024 held earlier this year – retailers showcased some exciting new technologies including AI shop representatives, tech that provides product recommendations based on psychological profiles, and AI that monitors which foot traffic results in more conversions. Today, these technologies are shaping the world of fashion from thread to finished product, while molding the way consumers approach fashion.

It’s quite clear that as technology zooms ahead, the fashion industry must rush to keep pace. Last year, we published a fashion tech trends report in collaboration with Fashinnovation and featured perspectives from the Americas Apparel Producers’ Network (AAPN). This blog will reflect on the trends featured in the report, while providing a snapshot of what the year holds for the fashion industry, the shifting demands made of it, and the technologies that are stepping in to enable each industry segment.

The McKinsey Fashion Trends Report 2024 predicts a year of uncertainty for fashion, stemming from sluggish economic growth across the globe. The report mentions that inflation and waning consumer confidence are set to impact the industry significantly. In the US, it’s forecasted that the non-luxury segment will grow by a meager 0 – 2 %, while China will do marginally better at 4 – 6%. Statistics also reveal that operational costs for fashion businesses will continue to escalate, driven by rising wages, material, utilities, shipping, and logistic costs.

One key trend in the fashion industry is the call for better visibility and sustainable processes. Today, fashion businesses are hyper-aware of every aspect of their supply chains. Business leaders are continuously assessing their supply chains to optimize it with technology. As interest in recyclable fashion continues to grow, businesses are also looking to provide consumers with better insights on how their garments were produced. Moreover, businesses are considering how they can make better use of AI, leverage automation beyond simple workflow simplification and instead utilize it to enhance the work of humans.

Let’s take a closer look at the technologies that are shaping the industry.

Automation in the world of fashion is not limited to the intervention of machinery alone but includes digital solutions that streamline internal processes like inventory management, barcode printing, and effective deliveries. Finance automation is another good starting point for fashion businesses as finance teams engage in repetitive, time-consuming tasks like invoice processing and reconciliations. Automation can step in and transform all aspects of the fashion industry by improving manufacturing processes, enhancing efficiency, and reducing production costs.

In Bangladesh where the garment industry accounts for more than 80% of the export revenue, 80% of factories are planning to invest in automated machines in the next two years. This percentage will only continue to increase. Technologies like 3D printing, robotic sewing, AI-driven design tools, and automated inventory management contribute to faster production cycles and increased sustainability. Additionally, automation enables more personalized and on-demand manufacturing, aligning with the industry’s shift toward sustainable practices and customization.

A few other areas that automation supports include:

Fashion manufacturers:

• Precision cutting and sewing: Automated cutting and sewing technologies ensure precise and consistent results, minimizing errors and material wastage.

• Inventory management: Automated systems help manufacturers keep track of inventory in real-time, optimizing stock levels and reducing the risk of overstock or stockouts.

Fashion wholesalers:

• Order processing: Automated order processing systems enhance speed and accuracy, improving the efficiency of handling bulk orders from retailers.

• Dynamic pricing: Automation facilitates dynamic pricing strategies, allowing wholesalers to adjust prices in real-time based on market conditions and demand fluctuations.

• Supply chain visibility: Automated tracking and monitoring tools provide wholesalers with better visibility into the supply chain, reducing the likelihood of delays and disruptions.

Fashion retailers:

• Point of sale (POS) systems: Automated POS systems streamline transactions, providing faster and more secure payment processing for customers.

• E-commerce integration: Automation facilitates seamless integration between physical stores and online platforms, ensuring a consistent and efficient omnichannel experience for customers.

Migrating to the Cloud can help fashion businesses easily scale their IT infrastructure based on demand, accommodating seasonal variations and business growth. Cloud platforms also enable seamless collaboration among team members, designers, and stakeholders, allowing for real-time sharing of designs, inventory data, and other crucial information.

Cloud technology also ensures faster time to market accelerating development and deployment cycles, enabling fashion businesses to bring new products to market faster and respond quickly to changing trends. It also facilitates the implementation of e-commerce platforms, enhancing the online shopping experience for customers with faster load times, reliable performance, and seamless transactions.

Here’s a closer look at a few other industry segments and how Cloud technology supports them.

Fashion manufacturers:

• Supply chain visibility: Cloud technology enhances visibility across the supply chain, allowing manufacturers to track inventory, and monitor production.

• Security: Cloud providers often implement robust security measures, safeguarding sensitive fashion designs, intellectual property, and customer information.

Fashion wholesalers:

• Inventory management and supply chain visibility: Cloud-based solutions improve real-time visibility into inventory, helping wholesalers manage stock levels more effectively and reduce the risk of overstock or stockouts. It also provides enhanced visibility across the supply chain, enabling better coordination and responsiveness to market demands.

Fashion retailers:

• Personalized customer experiences: Retailers can leverage cloud-based data analytics to understand customer preferences and deliver personalized shopping experiences, improving customer loyalty.