Chapter 1

The state of fashion eCommerce and retailing

There is a paradigm shift happening in the fashion industry; McKinsey calls it the ‘year of the awakening.’ Merchants, regardless of size need to be agile, have a digital-first mindset and achieve faster speed to market. Small brands are able to develop a global presence quickly and on the cheap. At the same time, there is pressure from consumers for brands to be ethical, socially conscious and transparent of their product supply chain.

Declining brand loyalty

With lower digital barriers to enter the online fashion market, consumers are overwhelmed with choices.

In a fragmented market, this has led to brands competing for market share by investing in better omni-channel distribution and in-store experiences that put their customers at the heart of everything they do.

Cost of combating high online return rates

Statista estimates returns in the U.S alone will cost $550 billion by 2020. From an operational point of view, return rates can aggressively impact your businesses’ profitability.

Unfortunately, it’s a catch-22 because return policies can directly impact consumer purchase and return behaviours; 62% say they ‘would buy again’ from a brand offering free returns or exchanges and 96% would shop with a retailer again based on an “easy” or “very easy” return experience.

Keeping up with fast-fashion’s on-demand styles

The next generation of successful fashion brands will develop a model which helps them anticipate what the consumer wants — even before the consumer knows they want it — using predictive analytics and artificial intelligence (AI). 

This sophisticated model will help the process from design to delivery achieve close to real-time results. Some brands, like Stitch Fix, are already doing this.

Stitch Fix’s interactive Algorithms Tour is a monument to how data science is woven into everything that Stitch Fix does.

Consumer pressure to be sustainable and ethical

Another opportunity to dominate the fashion industry is getting sustainability right with the rise of the conscious consumer right at the forefront.

Lifestyle brand Miann and Co only uses natural fibres in their products, even organic cotton. They also work with organizations like a women’s co-op in China to manufacture their products.

We feel guilt attached to the choices we make. We ask ourselves how will it impact the welfare of animals, the environment and the people involved in the production process? 

Beyond your emotional, humorous, or inspiring brand story, conscious consumers are looking for information about your sustainable approach to the supply chain and how your brand existence is benefiting the environment. 

In the next chapter, we explore how these challenges take shape in the global marketplace and what you should start thinking about considering your own brand’s cross-border expansion. 

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Chapter 2: Global impact and predictions for the future of fashion