Summary

• Contrary to popular belief, investing in a sustainable future can bring great value and profitability to a business.
• Textile innovation is a major use case for technology, including more efficient fiber-to-fiber recycling methods and bioengineered fabrics.
• Digital garments can reduce carbon footprints and water consumption through satisfying the consumers’ craving for newness. 3D design capabilities are also cutting down sampling waste.
• Artificial intelligence can aid demand forecasting and help retain margins.
• EDITED helps retailers offer the right product, at the right price, at the right time, which drives sell outs and reduces leftover stock levels.

Introduction

Sustainability is climbing to the top of every retailer’s agenda, thanks to mounting consumer pressure and a growing climate emergency. Despite this, sustainable progress is moving more slowly than necessary, especially in the current economic climate, with many businesses resistant to investing in a problem that doesn’t offer a clear or immediate ROI. However, Gartner highlights great value in sustainability strategies, including enterprise growth and protection from disruption. The company has also reported that 83% of business leaders saw their sustainable initiatives create both short and long-term value. In particular, technological investments prove mutually beneficial for both business and planet, with Forrester drawing attention to the $17.5bn worth of venture capital funding for green tech. Hence, its time to capitalize on this digital age to boost supply chain efficiency.

Textile Innovation

Technology is invaluable when it comes to closing the loop and aiding circularity – particularly when in terms of  fiber-to-fiber recycling methods. It’s estimated that just 1% of recycled clothing gets turned back into new garments, as a result of blended textile compositions and sorting difficulties, but a host of innovators are working to change that. Once these technologies can be scaled and commercialized, McKinsey estimates that 70% of textile waste could be recycled, leading this industry to possess a €1.5bn to €2.2bn profit pool by 2030. 

Textile innovation is also growing at an unprecedented rate, including a slewof bioengineered fabrics that carry a lower environmental impact. From lab-grown leather to algae-based fibers, these manmade materials can be vegan, biodegradable and reduce dependence on chemicals, water and land. The manufacturing process also produces less waste than conventional textiles and a lower carbon footprint, with some biofabrications even absorbing carbon.

The Metaverse

NFTs and digital wearables have become a hot topic in recent years, with the second annual Metaverse Fashion Week having taken place in March 2023, featuring virtual designs from the likes of Tommy Hilfiger and Dolce & Gabbana. DressX, a leader in the digital fashion space, reported that a digital-only garment emits 97% less carbon dioxide than a physical garment and saves 3,300 liters of water per item. Thus, a shift to metaverse fashion can help feed the consumer’s need for newness, while combating overproduction/overconsumption in the physical world. 
Digital garments and 3D designs are also being used to reduce sampling waste and logistics-based emissions, with multiple samples often sent overseas from supplier to buyer in the creation of just one style, simply to be sent to landfill. Hugo Boss has been exploring 3D capabilities since 2013, presenting collections via avatars to global wholesale partners in digital showrooms. The brand also points out greater speed, flexibility, reactivity and cost efficiency as additional benefits, with the full process, from sketch to sales, taking six-eight weeks, compared to the traditional six month process.

Demand Forecasting

Artificial intelligence is also being used to aid demand forecasting and retain margins, allowing retailers to produce more accurate quantities and avoid overstock. The Business of Fashion reported that Gucci’s investment in this technology has allowed the brand to better allocate stock to its stores and global distribution centres, increasing the accuracy of inventory predictions by more than 20%, in comparison to previous methods.

Right Product, Right Place, Right Time – The EDITED Solution

Gartner predicted that technologies that let companies better tailor their product assortments would be a priority in 2023, with retailers aiming to hold 30% less inventory by the end of 2024. This is where EDITED comes in. The most basic solution to reducing fashion waste is taking a more customer-centric approach to assortment planning, using this understanding of the consumer to build more curated product offerings. EDITED’s suite of Market Intelligence tools helps retailers to mitigate risk, filling ranges with bestsellers to drive sell-through in every category, by highlighting gaps and opportunities in their competitor’s, and in their own, assortments. Pricing intelligence tools can also boost sales through competitor benchmarking on a global scale, while Enterprise Intelligence leverages internal business data to identify products for increased exposure, stock replenishment, or price adjustment. Pairing these insights with EDITED’s constant stream of data-backed retail reports will ensure brand’s have the right product, at the right price, at the right time – ultimately reducing leftover stock and creating products that consumers will love for longer.

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