The fashion industry wants to double investment in technology by 2030

As part of the joint study “The State of Fashion: Technology”, the market research company The Business of Fashion (BOF) and McKinsey predict that investments in technological developments by the fashion industry will double by 2030. Specifically, the volume of invested sales should increase from the current 1.6 to 1.8 percent to 3.0 to 3.5 percent. According to the forecast, the focus of investments should be mainly on the optimization of processes within the company.

Investments are constantly increasing

According to the study, a comparison from 2019 to 2021 already shows an increase in investments for technological developments of 66 percent. In these years, investments related to electronic commerce were particularly important. About 55 percent of the total volume is said to be attributable to the expansion of online shopping offerings.

Of course, this is also due to the growing demand associated with corona for this. But modern payment technologies, supply chain and process optimization, as well as NFT and VR topics already play an important role for many companies.

The focus is on business processes

However, instead of primarily promoting technologies that benefit the consumer, such as virtual size tips, most companies are increasingly focusing on streamlining their processes. In concrete terms, five main areas will play a role in the future.

This is how companies that succeed in promoting their brand successfully metaverse to integrate, we can expect sales growth of up to five percent. In view of the tightening of data protection regulations, they must continue Big Data and AI play a major role in personalizing the shopping experience.

In addition, technological developments can help move brick-and-mortar retail right Comprehensive offer to extend A use of it within the value chain can optimize company-wide processes. Finally, the use of Blockchain help track supply chains against their sustainability goals.

The backbone of the fashion industry

Above all, the shift in focus should increase benefits for the general public and ultimately help companies operate more sustainably. “Most of the investment in fashion technology over the past decade has gone into customer-focused innovation. Over the next decade, we expect to see this complemented by innovations that are transforming the operational backbone of fashion companies,” commented Anita Balchandani, Senior Partner and Head of EMEA, Apparel, Fashion and Luxury at McKinsey.

However, it is not only the big brands and luxury manufacturers who notice the added value of such investments. Technological developments are playing an increasingly important role in the field of fast fashion.

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