Altitude Sports has recently hired Joe Asma to take over the role of COO. He is preparing to address many of the new challenges that fashion companies face in 2019.
Other fashion companies need to follow his lead. Here is an overview of some of the challenges on their horizon.
Shutterstock Licensed Photo – By Nopparat Khokthong
Logistical Challenges Facing the Fashion Industry
The apparel industry is undergoing a number of challenges. This means that it needs to develop new logistical practices to stay ahead of the competition. New technology and strategies have made it much easier for shrewd companies to retain a competitive edge.
Companies that want to thrive in the fashion industry must conduct SWOT analyses and customize their strategies accordingly. As Asma and his colleagues at Altitude Sports show, there are some things that they need to keep in mind, especially as they try to retain their share of the running shoes market.
Factors that drive the need for new fashion strategies in 2019
There are a number of different factors that are influencing the future of the fashion industry. Here are some of the biggest concerns and opportunities on the horizon.
Globalization places greater pressure on fashion companies to curtail price increases
There are a number of factors that fashion companies need to take into account when setting prices. One of the biggest factors that cannot be overlooked is the growing competition from suppliers in Asia.
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Fashion companies need to recognize that globalization is leading to lower prices. This leaves them with only three options:
- Embrace globalization and start outsourcing manufacturing to cut costs.
- Find a way to justify higher prices. The best way to do this is by emphasizing the fact that your fashion company creates local jobs. You can also emphasize the fact that your company is more environmentally friendly, because you don’t have to transport your inventory across the world and follow better environmental regulations.
- Do nothing and go out of business.
You obviously don’t want to go with the third option. However, I felt the need to emphasize it to help you understand the dangers of complacency.
New advances in data technology
Data technology is playing an increasingly important role in the fashion industry. Here are some ways that savvy fashion companies need to embrace it:
- Predictive analytics is helping fashion companies understand upcoming trends. They capture existing data and use it to see what types of clothing lines will be more popular in the future.
- Artificial intelligence is simplifying the design process for fashion companies. Many new design tools use AI to create designs much more quickly.
- Big data is especially important for identifying the most profitable demographics in your customer base.
Apparel companies that are not leveraging big data are doing themselves a disservice. They should evaluate the benefits of using big data and incorporate it into their strategy.
Dealing with a growing base of environmentally conscious consumers
Consumers around the world are expressing greater support for environmentally friendly fashion companies. Their focus on sustainability extends to clothing preferences.
This is especially true for millennials. Some consumers might still be willing to purchase clothes with toxins or was produced in a way that harms the environment. However, the space of customers is rapidly shrinking.
As consumers become more environmentally focused, clothing companies are going to need to demonstrate their own commitment to sustainability. Of course, being eco-friendly is not enough by itself. Clothing companies are also going to Need to emphasize their commitment to sustainability in their branding literature.