By late 2019, “sustainability” had become a go-to concept that was probably generating the most buzz among the fashion retail and celebrity branding world. A key driver of this buzz was billions of dollars of excess inventory from fast-fashion retailers piling up with no end in sight. The emergence of innovative new channels of distribution, such as the rental and re-sale markets, were further contributing to the concept of sustainability as an all-important goal and were raising those swiftly emerging companies to a problem-solving stature as darlings of the fashion world.
Now, just a few months later, COVID-19 has induced dramatic changes. We have seen the world embrace new rhetoric: sanitize, sterilize, socially distance. Be ultra-clean, pure and, preferably, untouched. As a result, the erstwhile darlings of apparel rental have become near-pariahs in some cases, viewed by some as a literally untouchable category. Customers suddenly do not want to take a chance on something someone else has worn, no matter how unlikely the odds are of the virus living through a dry clean cycle.
Meanwhile, much existing inventory has suddenly become praiseworthy, highly-coveted and deemed nearly divine. That sought-after inventory is not “must-have” tops and bottoms but rather medical Personal Protective Equipment (PPE) — face masks, ventilators, protective and surgical gowns and hoods, headscarves and even bandanas.
Retailers and brands have come to understand that shelter in place orders will likely last for substantially longer than the initial 15-day expectation. As such, they are pivoting to virtual reality (VR) companies, which are providing the new turbo-virtual ecosystems crucial for shopping for needed items during this time.
Here are several areas where VR is currently used and will help brands and retailers alike stay afloat while the consumer acclimates to the new normal and cautiously begins spending money again.
Fashion Sampling
Using 3D sampling technology, designers are implementing this software to develop virtual samples. While eliminating the need for transport time to and from an office, these designs are coming to life on the screen. The creation of this platform enables the design team to work from any location to complete the entire collection, interfacing with teammates throughout the process using software such as Zoom and Microsoft Teams to create a collection every bit as fantastic as those of yesterday’s living samples. Manufacturers can get involved in the process, too. Given the considerable expense of much of this technology, brands are actively sourcing factories that have already made this investment. Once the samples are virtually created, new technology again kicks in, enabling the fitting process to occur virtually.
Virtual Runways & Markets
Given that social distancing has brought live market viewing to a screeching halt, how will brands launch their latest collections and bring those to the trade? That answer, of course, is virtually. There are fantastic companies hard at work, producing incredibly lifelike showroom and even runway experiences, where it takes nose-on-screen inspection to figure out whether it is a live show or 3D drawing.
Financially, the potential payoff from these technologies promises to be dramatic. Billions of dollars in savings are expected, for example, simply from the elimination of leases for vast tracts of unused space rentals, as well as the corresponding production costs now virtually available and the sample making costs. The economic benefits of these savings are especially important today; they represent much-needed breathing room to the cash-ailing industry.
Despite the multitude of services provided, participants increasingly find that the costs for many such technologies are quite fair, yielding ongoing efficiencies and economies of scale that handily offset the higher-than-normal initial costs, with a promise of continued cost savings going forward even as the high implementation costs amortize down over time. That creates an opportunity for increasingly fatter profit margins over time. For example, running a typical virtual showroom — from set up to completion cost — can average $12,000 plus a $2,500 per month maintenance fee. Compare that to the cost of running just one fashion show — traditionally, a $200,000 expense (or higher). This is the kind of bargain that might make a sample sale customer salivate.
There are additional benefits as well. Consumer-facing software able to interact with customers in real time can provide immediate feedback before the manufacture produces a single item, resulting in less wasted inventory and much more targeted production in line with the consumers’ actual needs and desires.
VR Dressing Rooms
We had predicted VR dressing rooms might replace in-store try-ons before COVID-19 as a means to give the digital customer information before purchasing. This would help solve the puzzle of what we do with all the returns. But in the world of COVID-19, it’s just much more sanitary. Each time someone touches or wears live items in a store environment, the chances of germs on the items increases. However, in the virtual world, items can be produced in a sterilized factory, shipped through certified sterilized warehouses and be delivered to a customer with minimal unregulated touchpoints.
The current software systems allow consumers to download their own images and measurements, making it a true reflection of how they would look wearing an item, and the technology is constantly improving.
Brands and retailers can benefit from this technology as well. Normally, a fashion show is a fast-paced environment with models of one size each wearing one item. With this technology, brands can display their items on 3D models of many different shapes, sizes, ages and so on, giving merchants the capability to view each item on their target consumer group before making a committed purchase.
Our advice to all brands and retailers today is to educate and acclimate. To see all the incredible opportunities staring our industry in the face, we must educate ourselves on the technology that already exists and band together to use it. This will force a shift in the industry that will eliminate the need for selling disruptions during uncertain times. There will be hundreds of thousands of new jobs created within this growing field as the demand grows, and it will help alleviate some of the jobs inevitably be lost as brick-and-mortar shops evolve.
We are optimistic about the future, a new and different future, when we hope our industry will seamlessly integrate with fashion.
Steven Powell and Zahra Bahari Powell
The Powell Companies Real
thepowellcompaniesreal.com
