Sourcing Journal has published its second annual exclusive 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 ongoing disruption.
Divided into four categories (primarily digital, focused product assortment, productivity and sustainability mindset, and social stewardship), the latest round of proprietary data was collected through a survey administered to more than 400 senior fashion industry executives alongside with in-depth interviews and insights from the experts at Sourcing Journal and AlixPartners.
Among the findings, the team discovered that only 50% of brands and retailers are investing in digital tools to fortify their business against disruption.
Despite all the technology 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 do not prioritize digital tools to connect with consumers.
Additionally, 80% of companies surveyed have sustainability goals, but less than two in 10 (19%) are actually tracking and using carbon footprint data.
“This report’s findings point to an industry that is changing slowly, and while it often has the best of intentions, there remains a disconnect between goals and tangible progress,” said Edward Hertzman, CEO and founder of Sourcing Journal, in a statement. release. “Our research illuminates the crossroads we find ourselves at today. Even with the tools at our disposal 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 brand and retail 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 buy,” said Gokki. “Brand loyalty and buying 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 fewer than half feel they are equipped to handle that downturn.”
The report’s findings were unveiled in person during an AlixPartners presentation at the Sourcing Journal Fall Summit at Cipriani 42nd St. in New York in October. During the summit, leading industry experts shared their insights on all facets of the business, from mix-and-match logistics strategies, start-up challenges and consumer insights.
TO DOWNLOAD THE FULL REPORT CLICK HERE.