Fashion is a dynamic business. Most clothing brands produce at least two to four collections a year, and while they sell the current season’s collections, they plan the next ones at least a year in advance, identifying market trends and materials.
The selling period is about three months, and unsold stocks represent financial losses. Fast fashion companies introduce new products even more frequently, thus operating within design, production, and marketing timelines that are significantly reduced.
Taken together, they open the door to the use of technology, from blockchainto tracking fashion companies’ supply chains to the use of artificial intelligence (“AI”) to help create collections and market accordingly.
Technology and fashion
The fashion industry is well-versed in experimenting with new technological frontiers. Some of the most important technological breakthroughs are laser cutting, computer-aided design, and more recently the use of 3D printing in the early 2010s.
In addition, the fashion industry has experimented with web3, basic artificial intelligence (“AI”), and other cutting-edge technologies, an example being the Gucci Garden, the collaboration betweenGucciand the virtual worlds platformRobloxin May 2021 to celebrate the centenary of the Italian brand fashion.
Non-fungible tokens (“NFT”) are another area of innovation, as happened with theDolce & Gabbana Genesicollection in collaboration withUNXD, a luxury digital marketplace. This collection generated$6 millionin revenue (and at least one lawsuit), setting a record for NFT sales.
Fashion companies and luxury brands are exploring blockchain technology for product authentication, supply chain tracking, and community engagement through digital IDs. At the same time, augmented reality (AR) is becoming an essential tool in marketing strategies, offering immersive and interactive experiences for customers, such as virtual product testing. This integration of advanced technologies is transforming the way brands interact with consumers and protect their authenticity.
Game-changing technology
No small feat, fashion companies have invested between1.6 and 1.8 percent of their revenue in technology in 2021 alone. And that figure is expected to rise to between3 and 3.5% by 2030.
Generative AI, in particular, could be a game-changer for the fashion industry, adding$150 billion to $250 billionto operating profits within three to five years.
Although the fashion sector has only just begun to integrate AI into its operations, the opportunities and challenges it presents are evident in all business processes. For example, generative AI could help fashion companies improve their processes, bring their products to market faster, sell more efficiently, and improve the customer experience.
This technology could also support product development by analyzing large datasets of social media and catwalks to identify emerging trends in fashion.
The Estée Lauder CompaniesandMicrosoft, for example, have partnered to open an internal artificial intelligence innovation lab to identify and respond to trends, inform product development, and improve the customer experience.
The Tommy Hilfigerbrand is collaborating withIBMandthe Fashion Institute of Technologyin New York on the Reimagine Retail project, which uses artificial intelligence to analyze consumer data and design new fashion collections. Designers can also convert sketches and mood boards to 3D models and 3D print them to speed up prototyping.
Iris van Herpen, a Dutch fashion designer, used artificial intelligence to imagine and execute the visuals of her Fall/Winter 2023 collection.
Fashion, artificial intelligence, and sustainability
Artificial intelligence (AI) is playing an increasingly important role in promoting sustainability in the fashion industry. Giants like H&M and Zara are using AI to optimize supply chains, manage inventory, and reduce waste. H&M, for example, is using “responsible artificial intelligence” to improve recycling processes and support the circular economy after being criticized for destroying 60 tonnes of unsold clothes. In addition, AI-based virtual fitting solutions adopted by companies such as L’Oréal improve the online shopping experience and reduce returns, contributing to more sustainable fashion.
Effective campaigns and AI pitfalls
Artificial intelligence is becoming essential in the fashion industry, providing personalized experiences and optimizing marketing strategies. Brands like Reebok and Versace allow customers to use AI to create unique products that reflect the brand’s style. However, integrating AI comes with risks, such as intellectual property infringement and potential issues of bias in the generated content. Also, the ambiguity surrounding creative rights in the age of AI can affect the authenticity and reputation of brands, jeopardizing the public’s perception of their innovation and originality.
