3 Trends Fashion Retailers Can Address Using Technology

At this year’s Melbourne Fashion Week Australia’s leading fashion and apparel retailers will gather to discuss the future of the industry.

Fashion and apparel has not been immune to the regional and global changes we’ve seen in retail. While there have been challenges, there is also ample opportunity for ambitious retailers.

2023 is a big year for fashion and apparel. Data from Statista reveals that:

• Revenue in the Fashion market is projected to reach AU$12.21bn in 2023.
• Revenue in the Apparel market amounts to AU$29bn in 2023, with the market expected to grow annually by 2.87%

As part of the 2023 Melbourne Fashion Week, Lightspeed will be hosting an exclusive evening to discuss the future of fashion and apparel in the region, and how retailers can innovate to meet the opportunities in the market.

There’s a lot of opportunity on the horizon, but how can retailers take advantage of the shifting tide?

Shifting economic climates and social changes have reshaped consumer behaviour. In order to meet the changing demands of customers in 2024 and beyond, retailers need to answer these three questions:

1. How are you addressing consumer demands for sustainability?
2. Are you personalising the shopping experience?
3. How are you optimising the omni-channel experience?

How are you addressing consumer demands for sustainability?

Sustainability is becoming a deal breaker for many consumers, especially for younger generations who now have more buying power. However there is more to sustainability than simply planting a tree for every garment sold.

Sustainability is a complex beast that affects more than you may think. In order to satisfy the demands of being a more sustainable retailer, you need to address several factors.

• Slow fashion: The appetite for sustainability and slow-fashion is continuing to grow quickly. One survey by First Insight indicates that two-thirds of global consumers are willing to pay more for sustainable products.
• Upcycling and reducing textile waste: Consumers are more informed and more adept at gathering information. Textile waste is growing to be a major concern for consumers, and they will be researching which retailers are addressing this issue.
• Fair trade manufacturing and supply chain: Fair trade has also grown from being an exception to the rule. Consumers want more transparency on not only who made the garments, but also the conditions in which they were made and the materials they used.
• Sustainable materials that are innovative: Sustainability shouldn’t exclusively look like hemp. As consumers prioritise sustainable materials, they want to see how innovative materials can be used to be both functional and still slay.

Need some sustainable inspiration? Australian womenswear label búl was quick off the mark when it came to slow fashion. Their dedication to quality craftsmanship through sustainable fashion is one the many pillars of their success. Check out búl’s story.

Are you keeping an eye on stock and product performance?

If you already offer sustainable products, ask yourself how that product is performing. Inventory reporting will be your best friend here.

Gain greater control and visibility of your stock with real-time reporting to see sell-through rates and weeks cover, identify products that aren’t performing, isolate gross profit and margin opportunity. If you can see that sustainable products are moving more than others, it’s a clear indication that your customers are prioritising sustainability.

If you’re operating multiple stores and eCommerce, you’ll need an accurate record of stock, and report on inventory performance.

Furthermore, when it comes to product supply you need to make sure you’re sourcing products that meet sustainability standards.

Are you personalising the shopping experience?

The market is inundated with a swathe of competitors as more sophisticated digital marketing and promotion strategies aggressively competing for customer’s attention. That’s why personalisation plays a huge role in attracting customers and maintaining their loyalty. In fact, personalisation has become so commonplace that many customers expect it.

Personalisation is not only key to attracting new customers, but also to retaining the loyalty of existing customers. If you want to generate more revenue for your business, it is far easier with existing customers who already have a relationship with you.

Personalisation takes many shapes and forms:

• Rewards and gifts: Who doesn’t love getting a reward? Whether it be a discount, additional gift item or early access to a new product, gifts go a long way to fostering loyalty.
• Automated product suggestions: Pairing items in a customer’s cart with accessories is a proactive way of aligning with a customer’s purchase decision.
• Customised subscriptions: A popular tactic for DTC (direct-to-consumer) brands, giving customers the ability to choose what products or information they want to hear about reduces the chance of subscription burnout. Instead, customers only hear from you about the products they’re most interested in.
• Virtual fittings: If your store isn’t accessible for some customers, or they’re hesitant to shop online without knowing how a product will fit, customers may be discouraged from buying from you. Virtual fittings removes this barrier, giving customers more confidence to make that purchase.

Are your marketing and loyalty capabilities up to scratch?

You may not have the tools to offer an immersive virtual fitting experience, but there are several tools in your commerce platform that you should leverage.

Do you have a comprehensive record of your customer’s purchase history? Keeping a clear record of your customer’s purchases can provide you with a wealth of information to personalise their future experience. When you know that a customer makes repeat purchases of a certain item, you can pair it with complimentary items in the form of gifts or suggested purchases.

Similarly, a top notch loyalty program should effortlessly foster loyalty and funnel new customers into your store. Reduce the amount of manual promotion you have to do by leveraging automated communications and collecting customer feedback to refine their experience.

How are you optimising the omni-channel experience?

Omni-channel goes beyond eCommerce. Yes, more shoppers are flooding to online shopping but you must account for the user experience both before and after purchasing.

From product research and comparison, to looking for better deals, to long-term product satisfaction, there’s a lot of touch-points for prospective and existing customers to learn about your product as they make their decision.

• Social proof and engagement: The rule of “If it didn’t happen on social media, it didn’t happen” is particularly true when it comes to fashion retail. Not only do customers use social media to research available products, but they’ll be looking into reviews to weigh up the product and service quality.
• Delivery and returns matter: According to data from Australia Post, free delivery will be an important factor for 69% of surveyed shoppers.’
• Convenient and secure checkout: Nothing will instil fear into a customer faster than a sketchy checkout experience. Whether it be a slow experience in store or an untrustworthy checkout page online. Take steps to ensure checkout is fast, smooth and secure.

Are you taking advantage of your full eCommerce capabilities?

Omni-channel is all about consistency. Customers need to have a consistent and compelling experience with your brand across physical and online channels.

Inventory accuracy

First of all, make sure you’re on top of your inventory. Ensure your stock count accurately reflects what your website says is available. Furthermore, make sure that if you’re operating multiple locations, or if your stock is housed in another location, that your commerce platform can reflect this and allow you to easily manage your stock to fulfil online orders.

Reducing manual tasks

Secondly, be sure to use your platform to reduce manual tasks. Automate your marketing through your commerce platform so promotions are constantly funnelling in customers, rather than manually managing promotions in short bursts.

Delivery & returns

And finally, be mindful of customer’s attitudes to product deliveries. Schedule and manage deliveries and return in one system so nothing slips through the cracks. Customers have run the gauntlet and have made their purchase, so it’s important that you don’t drop the ball. Delivery and returns is a crucial part of omni-channel experience, so be sure to remove any barriers or manual errors to provide a delightful shopping experience.

Embrace technology to drive your growth

There is a lot to discuss and consider as we approach Melbourne Fashion Week. With change comes opportunity, and savvy retailers will be proactively looking for ways to give themselves an advantage.

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