In an environment of digitalisation and irruption of technologies, data analysis will be a lifesaver for fashion companies according to the report Geek meets chic: four actions to jump-start advanced analytics in apparel, by Mckinsey.
The current fashion scene is changing by leaps and bounds due to the irruption of technology in all stages of the value chain. Consumers are more demanding and they have got used to immediacy and personalised offers. Even competitivity has increased. In that context, big data has become an essential tool to compete but, how should fashion companies use it?
The companies leading the change are the digital native ones, Amazon leading the ranking, which are already implanting new data analysis strategies. However, more traditional fashion companies are left behind in the implantation of the use of data analysis to improve their strategy and performance, according to the article Geek meets chic: Four actions to jump-start advanced analytics in apparel, by Mckinsey.
As stated in the report, the analysis of data in fashion companies have been carried out in different areas such as finance or marketing, but they have not been integrated in all divisions nor have worked all together. In order to improve the company’s efficiency, retailers must prioritise the areas that have a greater impact on consumers at the time of implanting data analysis so as to have more opportunities, but afterwards, they should also implant it in all other departments.
To survive the digital era, companies must integrate data analysis in all areas of business
On the other hand, instead of seeing such amount of data as a limitation, players should build a wide structure that allows them to analyse information of all areas, from the needs of customers, to the trends of the market, the most demanded sizes or the most wanted products. In that way, companies could offer a more complete and personalised offer to each consumer.
Furthermore, making use of external data could provide companies with an integral vision of the whole of the customers’ demands, knowing when, how and where they are going to purchase, and thus, being ready for it.
Fashion groups should say their farewells to traditional calendars in order to release a faster and nimbler model
In parallel, the document explains that fashion groups should get rid of the seasonal calendars that dominated the timings of business until now. With the change of model, companies could come ahead of time to the demands of its clients due to previously analysing their data. All in all, the report states that the implantation of a nimble operative that speeds up the timings in which the sector works is one of the most difficult challenges that fashion companies will have to face.
Lastly, even though fashion companies have always had an essential role in the creative and artistic areas, with time they will have to invest more and more in technical and analytical tools, as well as in talent from other areas such as computers and scientists. The goal is to integrate in the most appropriate way the digitalisation process that has reached the fashion industry.