Each and every fashion brand indifferent of the size are operating in the digital realm. With the emergence of digital technology, it can be said that it has established itself both as a blessing as well as a curse. But the feeling is absolutely dependent on the parameters as to you whether you yourself a digital company or you are inspiring to be one. From the perspective of the customer digital technology is indeed a blessing as the products and services are available in a hassle-free manner with an extremely good shopping experience. But the other side of the coin says that the software and platforms are actually decomposing many of the company’s structures as well as causing loss to their assets- something which has been created with a lot of time.
The digital Advisors and the board members relate to the fact that almost all the industries are witnessing the same problem and that technology startups are having higher evaluation than the industry incumbents. Now let us dive deep into why this kind of problems are arising and the main causes behind the same.
First of all Legacy business is very hard to grow because DD to manufacture their own products so that it can be sold, unlike the technology-based startups which are doing networking business and becoming a middleman between the consumers and the sellers.
Secondly, in the case of the new business models, the practice of rent is done so that we can stay connected to the consumer with the help of the substitution relationship. This makes sure that the customer relationship can be intelligent in and also more data can be obtained in the process.
The third thing is that the digital marketplace helps consumers to become smarter with the help of machine learning procedure. Each and every action that happens in the digital world gets tracked so that the customer needs can be understood in a better manner.
It is a sure shot thing that investor valuations are actually degrading even though most of the leaders will deny the same. In the case of the venture capitalists, it has been seen that they are investing billions of dollars on start-ups continuously which is actually contributing to the destruction of numerous brands and their assets. The fact is true for all the bigshot companies like Airbnb, Uber, Etsy and a lot more – and all the industrial economies are being eaten up by the AI and software. If you look at the market value, you will be able to witness the reality to a great extent. For example, the investors actually give more emphasis on the sellers and the digital platforms have been powered mostly by the investors. It has been seen that most of the digital platforms have been able to get great importance and attraction from the customers and it is because of the same technology that they have been able to attract suppliers as well. Right now every fashion brand has to work on the basis of three Horizons as been mentioned below.
Selling the existing physical goods and services and marketing them
The first thing that you have to do is to try an innovation in the existing products and refreshing the branch so that it can be valid and acceptable to the current market. You will have to to put confidence in your years of experience and it read design all the products and services so that the future of the company is protected and it is inclusive of The E-Commerce style.
Creating a subscription model
You will have to find different ways to improve the business in the faster method and also indulge in cost-cutting. The fashion industry needs to understand the Desire and need of the customers and improvise so that they can complete at a breakneck speed and go beyond the simple transaction methods. You can use the subscription system so that taking out data of the customers can be easy.
Creating a partnership with digital platforms
When you are building a partnership with the digital platforms then you are actually centralising your goods and services so that it can be brought forward to the masses. It gives you a better chance of lead generation and profit percentage so that you can get everything that you need including leadership, investors, technology, and skills. Now not only can you manufacture your own products but you will also be able to resale The Other goods and services with the help of networking system.
Each and every company has to operate in the three Horizons and even though it might be a hassle some at the beginning get the struggle has to go on if the brand and legacy needs to be established. Even though the goods and services, as well as the Horizons, are there it is the mindset that is lacking which is why the erosion is happening fast. You have to update in all the three Horizons so that you will be able to access the customers, as well as the requirements, are they have. This will help in giving you the privilege so that you can excel in the fashion industry, as well as the requirements, by holding hands with technology.