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The Fashion Industry: Post-COVID-19 Opportunities

The world is experiencing a catastrophic event, with economic repercussions not unlike the Great Depression — though we still have no idea how devastating. Everything has slowed down. Businesses and factories have closed — some temporarily, some permanently. Everyone’s wondering when will this end. How will the fashion industry survive amid all of this disruption?

In the December 2019 Fashion Tech issue, I wrote about artificial intelligence (AI) and its impact on our industry. This month’s article takes it another look at how AI, augmented reality (AR), machine learning (ML) and virtual reality (VR) are introducing innovation to how we work. Just as I stated in that article, the future of the apparel industry is digital.

As unwelcome as the events of COVID-19 have been, they have forced a digital transformation. One advantage is that the apparel industry is famous for the flexibility to perform in its highly changeable market. The resiliency of the fashion industry continues to amaze.

Apparel Production

Changes in workforce skills and organizational operation have moved much slower than advances in technology. In the past, computer-aided design and manufacturing (CAD and CAM, respectively) have brought us many solutions to apparel production automation. The industry has embraced the experimental nature of these innovations.

Automation and robotics are key to the continued development of a more flexible apparel production operation. Technologies like these will lead to the end goal of an “augmented workforce integrated with robotic and cognitive automation and digital organization,” according to Deloitte. It is evident that much more is possible.

Wholesale

With the closing of retail stores, the consumer is looking for a distraction. They’re suffering from COVID-19 fatigue. They’re looking to what they know how to do: shop online. According to Jordan Knapp of Shopifyplus, the barriers for a company to go digital have been removed; it’s a level playing field. When a brand goes direct to the consumer, specific health issues are avoided. Brands are doing more with social media to foster community. They are supporting the brand’s message with videos and, in turn, expanding on customer lifetime value. “Customer loyalty is everything now,” Knapp said. Social media matters more now than conversion rate.

Alternatives to physical showrooms are online marketplaces like JOOR, NuOrder and BrandBoom. These virtual showrooms act as online independent sales representatives. They can upload a digital catalog, create a Zoom or video link and schedule virtual market appointments. According to Loree Lash-Valencia from JOOR, they can do everything online. Trade shows are critical, but when that’s not possible, the online marketplace offers a complement to the buying process.

Retail Security

Data security is a priority No. 1 for retailers. Not only does hacking compromise proprietary information for the store and the consumer, but the backlash is the potential for consumers to boycott shopping at that retailer either temporarily (33%) or permanently (19%) (according to Honaman, 2020). As technology use continues to spur retail business growth, cybersecurity has become an increased threat.

While most retail fashion businesses have remained closed during the shutdown, they have not been idle. Many are set to reopen as of June 1 with streamlined operations for customers who are hesitant to flock to malls and shop physically. For example, David’s Bridal plans to operate with online style assistance. The company will launch a staff of over 300 virtual stylists and virtual appointments to offer the bride-to-be on-demand advice on how to measure and select undergarments for the gown guided by an online style quiz.

Gaming

The most innovative approach yet is immersion. “Immersion into virtual reality is a perception of being physically present in a non-physical world,” according to Wikipedia.

Based on the world of gaming, a few tech companies have created virtual environments much like video games. Starting by building a 3D production scenario, a brand can offer apparel not yet produced using ML where a software system can match a photograph or line drawing to a 3D sample. The 3D samples can be presented to a retail buyer in a virtual showroom with suggested assortments for the buyer’s approval.

All of this can be achieved utilizing gaming technology. Getting in the game, so to speak, already has some apparel companies and famous designers creating and selling skins (the outfit a gamer’s character wears during the game).

In conclusion, we may see more merger and acquisition activity as the financially weaker companies succumb to a cash flow crunch and are acquired by financially healthier companies. This may mean big business thrives while mom-and-pops perish. It remains to be seen how the U.S. government will respond.

Will things ever be the same? In a word, no. Although eager to get back to pre-COVID-19 activity, shoppers may be reluctant to jump back into the business-as-usual mentality, choosing to increase activity gradually instead. If nothing else, COVID-19 has taught us how resilient the fashion business is and how innovative workers can be. Reopening with modified operations, and perhaps some new approaches, remains the wisest approach.

Linda Tucker, EdD

Apparel Merchandising and Management

California State Polytechnic University, Pomona

lindabtucker.edd@gmail.com

213-324-5914