A digital disruption

Fashion has benefited from digital innovations. Digital interventions are a part of the business cycle in today’s society. The entire business cycle is now digitally intelligent, from AI-based fashion, trend, and product forecasting to robotic manufacturing, merchandise planning, and predictive sales to customer targeting.

The digital world is now part of our everyday lives! How?

Digital technology is a major influence in our daily lives. From Alexa and Siri to music apps that tell us what to listen to, when, and where to Google Maps showing us the fastest and shortest route, digital technology has taken over and controls every aspect of our lives. Our socializing is also virtual.

Artificial intelligence (AI), it seems, is giving our brains a much-deserved rest. Or perhaps even enslaving us. It’s a lazy one! No business or person is immune to digital disruption. The pandemic of last year has only accelerated this process. Will human touch become the new luxury when robots replace human staff, intelligent software replaces merchandising, and drones deliver our merchandise?

Digital interventions are a part of the business cycle in today’s society. The entire business cycle is now digitally intelligent, from AI-based fashion, trend, and product forecasting to robotic manufacturing, merchandise planning, and predictive sales to customer targeting.

What was the beginning? Luxury brands have made a huge leap from being hesitant to embrace digital technology to now leading the way in digital innovation. With evolution came innovative solutions: AI, Internet of Things, virtual reality, augmented reality, blockchain, mobile commerce, and 3D printing. These terms are now a part of the luxury and fashion industry, which is currently undergoing significant changes.

In terms of fashion, the first technologies began to emerge in the 19th Century. By 1889, the first mechanical sewing machines that were used in clothing factories had made their way into households. Electrically powered sewing machines were widely used by 1905. The first computer-controlled machine to sew was introduced in 1978. In 1960, 3D CAD was available to the entire world. Designers began using 3D printing for shows only in 2010. In 2010, Iris van Herpen’s collection of 3D-printed dresses at the Amsterdam Fashion Week created a wow effect.

If AI, 3D, and VR/AR words were rare in the past, now almost every designer wants to include a piece of them in their collection. Brand managers compete to use advanced technologies.

In the 1970s, online platforms weren’t available. After a successful Donna Karan fashion show in 1997, a few journalists asked the designer if the photos could be uploaded to the Internet. The designer refused. In 2000, the launch of Net-aporter, the first luxury retail ecommerce fashion store, began to change the face of luxury retail.

Alexander McQueen was the first to use robotics for fashion in 1999. Two robots spraypainted a McQueen dress on a model wearing it.

Burberry’s digital revolution changed the face of the industry, making the brand the leader in digital communication and the market leader. In 2006, Burberry’s CEO Angela Ahrendts was faced with the challenge of a fading brand identity. This iconic brand was once known for its fancy coats. Ahrendts appointed Christopher Bailey as a brand czar to regain control over designs. Bailey was a technophile who hired designers and people from gaming companies. To communicate with these twenty-somethings, they had to speak their language, which was digital. Burberry was to be dubbed ‘the world’s first digital luxury company.’ The brand began the transformation by aiming to create an online experience that was identical to the offline channel. The brand was the first to offer online videos and live streaming, as well as the first one to create the ‘Burberry retail theatre,’ which allowed customers to purchase goods straight from the catwalk.

Burberry has maintained its leadership in digital luxury. The first luxury retailer to open a social commerce store was Burberry in Shenzhen. In September 2020, the new 5,800-square-foot store will allow customers to share content and personalized experiences and access online.

Tommy Hilfiger became the first company to offer virtual reality (VR) to customers in 2014. This was done by using the GearVR headset from Samsung. It gave its customers the chance to be immersed in exclusive fashion moments 360 degrees.

In 2017, Coach introduced VR to its US stores, allowing full access to the shows with stereophonic sound.

Fashion has also been using AR. This increased sales and enhanced the experience offered to consumers. Sephora, a luxury brand owned by LVMH, was the first to allow buyers to test products using a front-facing video camera and select the correct color and shade. The innovative solution not only allowed for the trial of different make-ups by introducing virtual artists, but it also increased revenues.

Blockchain technologies are a result of the rapid growth of the fashion industry and the luxury goods sector. They offer transparency and traceability to companies and their customers. Blockchain protects intellectual property rights within the ecommerce industry. LVMH (2017) and Swiss luxury watchmaker Vacheron Constantin (2009) were the first luxury brands to adopt this technology. Dolce & Gabbana’s Fall 2018 handbags were carried by drones instead of the usual millennial models. While these technologies are now a crucial part of the business cycle for any luxury brand, they were not able to progress beyond their basic conceptual framework just seven years ago. Hermes announced recently that their online boutique on 24 rue du Faubourg Saint-Honore in Paris brings them 80 percent more profit. In a 2019 report, Marco Bizarri, CEO of Gucci, highlighted that 40 percent of Gucci products could be automated. It could also lead to a decrease in high-skilled workers and costs, which can be a problem for the brand.

Imagine that AI could analyze data for tomorrow based on yesterday’s data. Analyzing fashion trends, in general, is not easy. AI data cannot be blindly trusted to predict trends. Predictive analytics helps consumers choose the best combination of colors, styles, and designs that suit their personality. AI-based start-ups, like Dress-fit, allow designers to create and sell 3D clothing. Customers can now create their 3D avatars and then dress them in clothes they like. The 3D avatars are able to be used in games started by luxury brands such as Ralph Lauren and Gucci. Virtual trial rooms can help you find the right fit for your 3D avatar.

Luxury brands adopted digital technologies at a faster pace in the past year. Fashion and luxury industries have survived lockdowns with innovative solutions and technologies. Virtual store tours using Zoom or video-based technology, distance selling, on-demand live streaming, and virtual assistants ensure that brands are able to serve their clientele in multiple ways. In order to achieve more sustainable growth, the industry has reoriented its business models towards online sales. They have also accelerated the digitalization process. In 2020, everything changed. Due to pandemic-induced lockdowns, VR shows are now a reality for luxury brands like Prada Tissot and Hugo Boss.

Virtual fashion weeks can’t replace offline. They could be used as a tool for communication and to promote the digital age. We are in the midst of a digital revolution or disruption. It is difficult to imagine VR replacing a glass of champagne; the smell, the feel, the touch, and the experience of sitting on a velvet sofa in a shop while selecting a scarf.

The luxury industry has spent decades creating a unique customer experience, an attitude, and a deep understanding of its customers. These new tools are trying to make the impossible understandable, acceptable, and unbelievable. The future of luxury is inextricably linked to technological innovation. This relationship has enormous potential.