I recently attended REMODE in Los Angeles, the premier event for disruptive and sustainable fashion, and heard countless conversations between senior retail leaders about embracing innovative, sustainable ideas and solutions in retail including AI, production and materials, ethical fashion, and financing. Whether it was Allbirds, Kate Spade, Eileen Fisher, The RealReal, or Shopbop, it was clear that retailers are adapting and creating brands under the sustainability umbrella - likely powered by expectations for environmental consciousness within the Millennial generation.
It’s clear that for any brand or retailer to remain relevant, sustainability needs to become a core component of its strategy. With a definition that can truly capture everything from materials, to manufacturing, to shipping and beyond, how a brand defines its sustainable message can vary vastly across the wide industry spectrum. But one element provided a common denominator across many facets of sustainability: technology is truly the driver in how brands are making sustainability happen.
In many ways, sustainability can be easier said than done.
On opening day, Everlane founder Michael Preysman spoke of the brand’s journey to sustainability and the role of retail companies in connecting with consumers on sustainability. “Pricing was easy to unpack and tell the story to the consumer about how much their T-shirt costs. When we started looking at which factories to work with, it got more complicated…it became about environmental transparency...The thing to remember is we don’t own the supply chain, but our goal is to push them forward to find the right combination of price, design and ethics. We’re auditing ourselves, then educating the consumer on things they didn’t know existed,” said Preysman.
Here are a few key themes that surfaced throughout the conference on how retailers and brands are leveraging technology to keep pace with consumer demand for sustainability.
1) Tech is helping change product development
Fashion brands and retailers are now using sophisticated tools to predict which styles will resonate with which consumers and at what price points. At the event, panelists discussed AI-based technologies that are generating value for fashion brands by helping them better understand their customers, enhance the impact of promotional activity and optimize their product offering as well as the marketing spend. One workshop showcased how technology can help brands get more insights from their data in order to make better decisions. Customers must be at the center of decisions, so retailers understand which products to introduce, how much to buy, how to set prices, and how to target products to the right customers. Through high-speed digital testing combined with AI and machine learning, retailers can increase product success rates and gross profit gains.
2) Tech is shortening lead times
New technologies are transforming the way garments are designed and manufactured. At REMODE, leading design technology CLO discussed how robotics and 3D modelling such as a smart mannequin that changes size within minutes allow designers to personalize unique models on-demand. Also, a true-to-life 3D garment simulation technology reduces the need to create multiple prototypes, thus shortening lead times. On-demand manufacturing was also a key theme, as it enables brands to quickly respond to changing consumer trends without being burdened with overstock, thus reducing waste. However, the presentations noted that scaling on-demand production still remains challenging. As fast fashion drives expectations for consumers, retailers and brands must continue to embrace these kinds of emerging technologies to deliver what consumers want. The closer to real-time, the better.
3) Tech is enabling retailers and brands to listen to customers more than ever
As brands increasingly focus on storytelling to connect with consumers, understanding what they expect is paramount. During the conference, panels discussed how creating engaging customer experiences both in-store and online requires immersive, personalized, and useful experiences -- integrated seamlessly across channels. It’s critical that retail companies monitor and analyze customer behavior continuously in order to ensure they are meeting the evolving sustainability needs and expectations of consumers. AI and Voice of the Customer data are able to tap into consumer sentiment, enabling retail companies to tell a story that connects with consumers in the right way. Deep understanding can require a mix of technology tools, including trend and social data along with consumer-driven predictive analytics. This will lead to enhanced revenue, margins, and speed-to-market. Technologies are also helping retailers ensure they have the right inventory levels in each location to maximize margins and avoid markdowns and liquidations.
4) Data is king
Both brands and retailers realize that capturing and utilizing data accurately and effectively is crucial to growth. One panel discussed how wholesale has been rife with data inaccuracies, delays, and lack of transparency. It’s critical that brands and retailers exchange product data more efficiently to make smarter production and purchase decisions. Collecting actionable data starts with understanding the consumer and listening to their voice. The conference also offered new possibilities for fashion through the integration of systems-based design strategies connected with social engagement. Whether it is a newly-emerging brand or heritage brand, actionable data that enables a brand or retailer to understand how to connect with loyal and newer consumers is critical. Aday cofounder and co-CEO Nina Faulhaber said the firm uses data from a database of about 6,000 people to find holes in customers’ wardrobes and then introduces new products accordingly.
Sustainability is a win-win. Beyond the business of fashion, creating more sustainable practices will lead to a cleaner world. But the quest for sustainability creates other positive ripple effects. As companies look to technology to facilitate new, more sustainable business processes, being aligned with consumers needs to be core to the decision-making process. Retailers that invest in technologies that give them greater transparency into consumers will have a greater chance of ensuring their investments pay off in the long run through more efficient, scalable models that give consumers what they want, at the price they expect.
