The Future of Personalization in the Fashion Industry
For many years, the fashion industry helps shape many countries’ economies across the globe with the technological evolution. From the start, the fashion sector has always been an early adapter of e-commerce. Over the years, the industry has grown into the biggest B2C e-commerce market segment, and its size has reached around $667 billion.
As environmental awareness is increasing, contamination and waste are no longer compatible with new standards of the production industry. Now it is high time for the sector to take a big step toward an efficient and sustainable way of manufacturing.
Evolution of Personalization
Earlier, mass production used to be one of the successful strategies in the fashion sector. After some time, a transformation happened from ‘made-to-measure’ to ‘ready-to-wear.’ The reason for this change is that buyers accepted standardized products and welcomed price reductions.
Personalization in this sector may include a lot of revenues. This means there is a chance that there might be an increase of around 112% in further purchases.
What Personalization Technology Is
In business, personalization refers to the process of creating individualized interactions and shopping experiences. These may range from tailored product recommendations and unique promotional offers to dynamic website content.
As such, personalization technology involves different types of software tools, which manage, collect, and stock customer information so as to orchestrate personalized experiences. Based on the size of ecommerce and your place on the maturity curve, this technology stack may also comprise a set of tools.
New technologies like PIM (Product Information Management) tools can display important production recommendations and create personalized bundles to ensure individual customers provide contextualized shopping experiences with products matching their tastes.
The reality of the Fashion Industry after Covid-19
The impacts of Covid-19 are changing people’s reality. From the eventual paradigm shift in how people live to a palpable social, economic, and humanitarian crisis, the ‘not normal’ has compelled people to rethink their priorities and how they use non-essential and essential goods.
The latter include accessories, footwear, and custom apparel solutions by Cobrapparel. According to a recent survey, the gains for the global sector, particularly the footwear and apparel industry, may contract to 31% this year.
For personal luxury items like fine jewelry, high-end beauty products, and luxury accessories, experts estimate a revenue contraction of 38% in 2021 YOY. If these stores get closed again for two months, the survey indicates that 81% of fashion companies in North America and Europe might be in big financial distress.
Trends in the Fashion Industry
Despite a big shift in global trade, customer behavior, and normal day-to-day lives for millions of people globally, there is a chance that there will be a wealth of opportunities for apparel and fashion retailers. By tracking customers’ behaviors, fashion sellers may establish Netflix-like personalization in the onsite experience either through account or session.
While this might begin product recommendations, a true personalization extends to the visuals used to present products. Usually, Netflix personalizes programs’ images depending on the past viewing behaviors of users. This is a feature, which nets approximately $1.1 billion every year.
Back to the ecommerce future, shoppers may start expecting a similar type of personalization in the fashion sector. You can take this personalization a step further by tweaking some recommendations for consumers who have either bought or browsed women’s designs.
In a Nutshell!
The way people buy has changed completely since last year. While most new buying trends result from the global pandemic and brands trying to adapt to life in social-distancing restrictions, many changes in the fashion sector are already underway.
Today, more than 27% of the global population buys products online. So it seems like the fashion industry is heading in the right direction.