Technology From the Ground Up

The past few years have been a heady time for rapid technological advancements. The already-growing trend towards digital transformation was pushed into high gear by the global pandemic, as the whole world suddenly needed to buy, sell and interact online. Now our lives are full of technological tools that allow us to connect around the globe.

Not About the Buzz

Other splashy technology trends arrived with buzz but have left much less of a mark behind. NFTs have experienced a significant drop in value.  Cryptocurrencies continue to rollercoaster through meltdowns and rallies. Even the Metaverse ran aground. Many exciting tech tools were fun to play with at first, but their lack of wider applications made them niche interests at best. Particularly when it came to retail.

Currently retail is facing an uphill climb. High inflation is a double blow—production costs are rising at exactly the moment consumers’ disposable budgets are shrinking. 

Customer acquisition is also harder and more expensive than before. The expansion of digital connectivity means customers, also pressed on all sides by inflation, can easily switch their loyalty based on price alone.

To drive loyalty, brands have to offer more than good prices, they must offer good value. In this uncertain economy, it might be tempting to try a flashy technological solution. But Kristin Savilia, CEO of JOOR, knows investing in other, less sexy technologies will help brands build the strong foundation that will see them through. She recommends these three key action items for the fraught months ahead.

Increase Forecast Accuracy

With continually rising prices and a global supply chain still in disarray, brands must balance a very fine line. No business can afford to sit on piles of excess inventory. But given consumers’ ability to switch loyalty at a moment’s notice, they cannot afford to be out of stock for long either. The fashion market is so heavily saturated that customers no longer need to wait. If an item is out of stock, they rapidly move on to their next choice.

Brands must have the ability to accurately forecast, so they can occupy the sweet space between too much inventory and not enough. 

“Brands must make sure their solution provides an end-to-end view of their inventory,” Savilia says, explaining it will help them address the shrinkage of sales windows caused by supply chain issues. “They should also make sure any platform they adopt is flexible and agnostic in its approach.” 

A technology tool that works easily with a brand’s existing data will make the entire process smoother and more efficient. 

Improve Data Management

Savilia also urges brands to evolve out of outdated data management techniques. “Data management in the retail industry hasn’t made much progress in 30 years,” she says. “Many brands’ data isn’t collected and housed digitally in one place,” which means those brands are missing critical insights. When data lives across multiple systems, it’s all too easy to overlook important signs and changing trends. 

Instead, Savilia recommends brands choose a platform that gives them access to collected data as early as possible during the buying process. When a brand adds a style or updates a price, retailers see the changes in real time. Order placement becomes more efficient order for both parties, so they can get back to the work of creating, producing and selling fashion.

Attract a More Targeted Customer

The pandemic was a wake-up call for the wholesale fashion industry, long dependent on in-person visits. Digital showrooms, virtual showrooms, and appointments became a necessity almost overnight. Today brands and retailers recognize that digital selling not only facilitates existing relationships but also creates new ones. 

A polished, public-facing profile is a must, of course, for brands to ensure their potential partners have a clear understanding of their product and vision. But Savilia thinks brands should go farther. “To maximize exposure, brands should leverage opportunities to publish public linesheets.” 

Increasing their reach and visibility in this manner gives fashion brands access to previously unconnected retailers, expanding opportunities for both. And that’s not all. 

“Brands should incorporate dynamic visuals, like video, zoom-in features, and 360° views into their content strategies,” an approach Savilia says will reduce the need for physical samples and speed up the buying process. “In 2023, I believe this level of visibility and collaboration is a must-have, not a bonus.”

Shore Up the Foundations

“In 2022, many brands were fixated on the latest, shiniest technology trends to attract new customers and increase sales,” Savilia says. The economic uncertainty of 2023 requires more fundamental thinking. Rather than focusing on the flash, she recommends they invest in technology tools and solutions that will truly drive growth.

Going forward, Savilia wants fashion brands to invest instead in technology that shores up the foundations of their business. Although they might seem less glamorous, technology tools and platforms that help brands improve their forecasting, provide data-driven business insights, and increase their visibility and efficiency will be essential to their success.

If you’re ready to transform your business, book a demo today.