The Fashion Industry Is Due For a Makeover

The fashion industry will see huge innovation in 2021 as new technology, changing customer trends, last-mile solutions, and demand for urban fulfillment will transform the industry.

Consumers have reconsidered their fashion choices and the trends continue to evolve. Selections are now based on the quality, practicality, and comfort of an article of clothing. It used to be that consumers wore whatever designers created. Those days are over, and fashion brands now use data to understand customer preferences, monitor their shopping behavior, and create products that meet their needs. The future of fashion is data-driven: by leveraging data on consumer trends, brands can create pieces consumers are most likely to purchase.

As the fashion industry innovates, experts predict disruptions to continue throughout 2021, with global recovery not being a possibility until late into 2022 - or potentially even 2023 if there is a delay in the vaccine rollout process. Others predict 20% to 30% of fashion brands across the world will file for bankruptcy or become acquired by larger, stronger companies before total recovery is possible.

During these unprecedented times, it’s more important now than ever to have a robust omnichannel and the last-mile strategy. Here are 5 ways the fashion industry can evolve into the new normal:

E-commerce Economics

If you’re not selling online, you’re not selling. Brands that have embraced e-commerce have already seen the benefits, significantly outperforming those who were slow to adopt online platforms in 2020. All signs point to this trend continuing its upward trajectory: McKinsey’s latest study found that 22% of surveyed executives reported it to be the key momentum driver in 2021. With more shoppers taking advantage of online shopping, fashion retailers have to follow suit. Aside from changing Covid-19 restrictions, consumers increasingly prefer the convenience and speed of online shopping, even if it means not being able to try an item on in person. The most successful fashion brands of the future won’t just make their clothing available online—they will also create an immersive digital shopping experience with things like virtual fit or sizing tools, virtual showrooms, and virtual stylists. Fashion brands will also leverage technology like AR and VR to allow consumers to “try on” items digitally from the comfort of their own homes. Major retailers like Nike, Adidas, Macy’s, and Modcloth are adopting virtual dressing rooms and bringing the technology mainstream. Using AR to virtually try on items helps consumers stay more confident in their purchases and reduces return rates by 36%.

Rethinking Returns

With the increase of online sales comes an increase in returns. NRF estimates $70.5 billion of 2020 holiday sales to be returned early this year. Many retailers are not prepared for the on slot of returns and the increase of Buy Online Return In Store (BORIS). Retailers need to rethink their returns process by investing in better inventory management solutions to ensure returns are refunded and restocked locally, verse sending returns back to a DC or processing center. By doing so, it reduces freight costs and minimizes markdowns. Investing in kiosks and lockers are another way retailers can offer a convenient returns solution and ease the environmental and monetary costs of reverse logistics. Partnering with GEODIS City Delivery ensures a more streamlined and cost-effective returns process.

Malls of the Future

While in-person shopping has declined, malls are not dead. The fashion industry has a great opportunity to offer speedy deliveries to the consumer while decreasing their last-mile costs. Retail mall locations are the perfect solution for brands to explore micro-fulfillment strategies as a way to diversify their networks. GEODIS City Delivery provides mall-based solutions like DC to Store, Ship from Store, Same Day Delivery, returns management, and other fulfillment services at Class A malls, geographically close to consumer. As more mall-based retailers utilize their stores for fulfillment, partnering GEODIS’ mall-based solutions makes good business sense.

Supply Chain Investments Grow

2020 brought extreme disruptions to the fashion industry and many brands were forced to reassess their supply chain. The growing pressure to implement omnichannel solutions and re-evaluating the last mile enabled retailers to pivot by optimizing their network. McKinsey’s global leader of Apparel, Fashion, and Luxury Group, Dr. Achim Berg, was quoted as saying, “Now is the time for executives to make bold decisions to get through these stormy seas, whether they are about channel strategy, geographic focus, assortment planning or securing supply chains.”

Experiential Last Mile, Leaves Lasting Memories

Have you seen that parody video circulating around the internet, jokingly comparing how USPS, FedEx, and Amazon Prime deliver to your doorstep? Funny enough, it’s hinting at a larger issue: last-mile delivery is a vital part of the overall branded experience. If your customer had an easy time purchasing online but was disappointed in the visibility and delivery options of the entire experience, they may not spend their dollars with you next time. Working with a reputable logistics partner like GEODIS City Delivery ensures an outstanding last-mile delivery experience. We take great pride in our training program that prepares our drivers to be prompt and courteous.

It’s time for a fashion industry makeover. Not only so fashion brands survive but so they thrive. And while the state of the fashion industry is far from fully recovered, brands need partners like GEODIS City Delivery to navigate 2021 and beyond. See how a total solutions provider like GEODIS City Delivery can help you overcome your logistical constraints and become your growth partner.