Sourcing Journal has published its exclusive second annual industry report in collaboration with global consultancy AlixPartners.
Dubbed “Fashion in Focus 2022: New Norms and Paradigm Shifts,” the report’s findings identify industry challenges and offer tools to prepare for the inevitable continued disruption.
Divided into four categories (Mostly Digital, Focused Product Assortment, Productivity & Sustainability Mindset, and Social Stewardship), the latest round of proprietary data was collected through a survey administered to more than 400 top fashion industry executives together with in-depth interviews and input from the experts at Sourcing Journal and AlixPartners.
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Among the findings, the team found that only 50% of brands and retailers are investing in digital tools to strengthen their business against disruption.
Despite all the tech tools at their disposal, 60% of fashion companies still use historical data and Excel spreadsheets to plan assortments, the report noted, and 41% of companies still don’t prioritize digital tools. to connect with consumers.
Additionally, 80% of companies surveyed have sustainability goals, but fewer than two in 10 (19%) are actually tracking and using carbon footprint data.
“The findings of this report point to an industry that is slow to change, and while often with the best of intentions, a disconnect remains between goals and tangible progress,” Edward Hertzman, CEO and founder of Sourcing Journal, said in a statement. release. “Our research illuminates the crossroads we find ourselves at today. Even with the tools at our fingertips to drive efficiency and accountability, the numbers suggest we have a long way to go.”
Murali Gokki, managing director in AlixPartners’ retail practice, added that retail and brand executives are beginning to recognize that regardless of where the business transaction occurs, consumers have fully embraced a digital lifestyle.
“In this new paradigm, consumers hold all the cards in terms of what, where and how they shop,” Gokki said. “Brand loyalty and shopping habits are changing rapidly, increasing the need for greater consumer engagement in all digital interactions.”
Gokki added that, at the same time, “retailers feel a downturn in the economy is likely in the next six months, and less than half feel they are equipped to handle that downturn.”
The report’s findings were unveiled in person during a presentation by AlixPartners at the Sourcing Journal Fall Summit at Cipriani 42nd St. in New York in October. During the summit, leading industry experts shared their views on all facets of the business, from logistics mix strategies, start-up challenges, and consumer insights.
TO DOWNLOAD THE FULL REPORT CLICK HERE.
Source: news.google.com