Is China’s Mysterious $15 Billion Fast Fashion Retailer Shein Ready For Stores

Over 30? Then you had better read on. Shein may not be a household name like e-commerce giants, Alibaba BABA -0.4%, Taobao, or JD.com, but as China’s newest retail Decacorn, its mystery-shrouded low profile is matched only by a single-minded ambition to become a global fast-fashion retailer.

Founded in 2008, Nanjing-based Shein is aimed squarely at Gen Z, luring young shoppers via Instagram and TikTok influencers and a barrage of discount codes for low-cost styles – with a dress costing just half that of a Zara equivalent, according to Societe Generale – uploading new products online in their hundreds every week.

Yet beyond its teen audience, ultra-publicity shy Shein remains largely unknown. But that anonymity could all be about to change after the Pearl River-based company became a surprise potential bidder for ailing U.K. fashion group Arcadia. While it failed in that attempt, the message is clear: Shein is ready to take on Main Street.

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The story really starts at the beginning of 2012, when notoriously hard-working founder and CEO Chris Xu (sometimes known as Yangtian Xu) – an American-born graduate of Washington University – gave up his wedding dress business to acquire the domain Sheinside.com. Initially selling women’s clothing, in 2015 he renamed the company Shein, focused on overseas markets, and began snapping up fashion rivals.

The U.S is now Shein’s largest market, while it also ships to 220 countries, with websites for Europe, the Middle East, Australia, and the U.S. Rapid growth has been propelled by a series of funding rounds, most recently completion of Series E financing in 2020, which gave Shein an eye-watering valuation exceeding $15 billion. Revenues are not disclosed but are locally estimated in excess of $10 billion annually and have continued to soar throughout the pandemic, while it currently counts a number of Asian and international VCs and private equity houses among its backers. MORE FOR YOUFashion’s Nightmare Before Christmas As Debenhams Joins U.K. CarnageAs GameStop Army Goes Global, U.K. Retail And Malls Among Most ShortedDr Martens Puts Best Boot Forward With Year’s First Big IPO

Shein: Fast Fashion, Made Ultra Fast

Remember that age/awareness divide? Well, in the week starting September 27, Shein was apparently the most downloaded shopping app globally on iPhone, according to analytics platform App Annie. It ranked in the top 10 in the U.S., Brazil, Australia, the U.K., and Saudi Arabia.

To service the U.S. market, products are sent from Shein’s warehouse in Foshan, Guangdong province, to a warehouse near Los Angeles, Ca., and fulfillment can take over ten days, glacial by Amazon Prime’s AMZN +0.5% next-day delivery standards. But its affordability has ensured a loyal customer base, lured by an ever-changing roster of women’s clothing and accessories added at an average of 2,000 SKUs every day.

Shein is obsessed with identifying hot searches and trends in different countries to predict the colors, fabrics, and styles that will be popular, with an even faster cycle than Zara owner Inditex. It then promotes heavily with Instagram- and Weibo-friendly imagery, for accessible and attainable fashions across all its social platforms.

However, Shein’s ascent has not been without its problems. In July it was roundly condemned for having a swastika pendant available (an error for which it profusely apologized), while paid-for posts from celebrities and fashion influencers have elevated the brand’s image as well as slowly rebutting its low–cost, low–quality rap. The label even managed to sequester stars like Katy Perry, Lil Nas X, and Rita Ora for its May 2020 #SHEINTogether global streaming event.

The Emergence Of A Global Fashion Player

All this remember for a company that didn’t even have its own supply chain before 2014, preferring to buy directly from Guangzhou’s Shisanhang Garment Wholesale Market. However, faced with soaring demand, Xu created an in-house design team and within two years had assembled an 800-strong army dedicated to designs and prototyping for ultra-fast production. It also garnered a reputation for timely payment, something of a rarity in China, and as a result when Shein moved its supply chain operations center from Guangzhou to Panyu in 2015, almost all of the factories it worked with relocated.

In the same year, Shein entered the Middle East and sales soared, with revenues in 2016 rising to $617 million and exceeding $1.5 billion the year after.

Shein and the hundreds of factories that work with the company have coalesced in a production cluster bearing close similarities to A Coruña in north-east Spain, where Inditex’s headquarters are surrounded by its upstream and downstream suppliers. It has four R&D facilities in Nanjing, Shenzhen, Guangzhou, and Hangzhou, plus six logistics centers in Foshan, Nansha, Belgium, India, and on the East and West Coasts of the U.S. It also has seven customer service centers, based out of Los Angeles, Liege, Manila, Yiwu, and Nanjing, and employs more than 10,000 people.

Future plans are thought to include the development of new businesses in mobile payments, supply chain finance, advertising, and, of course, opening brick-and-mortar stores. Whatever happens, it’s likely to do it ultra-fast.

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Mark Faithfull

Mark Faithfull

I am a global retail and real estate expert who looks behind the headlines to figure out what makes consumers tick. I work as editor-in-chief for MAPIC and editor for World Retail Congress, two of the biggest annual international retail business events.  I also organise, speak at, and chair conferences all over the world, with a focus on how people are changing and what that means for the retail, food & beverage, and leisure industries. And it’s complicated! Forget the tired mantra that online killed the store and remember instead that retail has always been dog-eat-dog: star names rise and fall fast, and only retailers that embrace the madness will survive. Don’t think it’s not important, your pension funds own those malls!

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Randomfacts by Shikhaa

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Chris Xu is the Founder & CEO of SheIn and has an approval rating of 62 from Owler members. They have over 200 employees. Shipping takes 2-3 weeks. Please refer to customer feedback before taking the item. Sizes may also vary from each clothing item. Track Info: Title: Ukulele Artist: Bensound Genre: Pop Mood: Happy Download: http://goo.gl/qNeHBq​ Ukulele by BENSOUND http://www.bensound.com/royalty-free-​… Creative Commons — Attribution 3.0 Unported— CC BY 3.0 http://creativecommons.org/licenses/b​… Music promoted by Audio Library https://youtu.be/G7HoUVcL5-U​ ––– • Contact the artist: bensoundmusic@gmail.com http://www.bensound.com/https://twitter.com/Bensound

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7 Costly Mistakes That Can Be Avoided By Brand Research

Branding strategies can make or break an organization. There’s a lot that goes into developing a successful brand, and the best companies around the world put substantial time and effort into brand development and image. Creating a successful brand requires time and research commitment and is an ongoing strategy that can yield amazing results.

However, small businesses at the start of their inception can potentially create crucial branding mistakes during their initial stages of development that costs them a lot of customers, money, and time. Even major brands make big branding mistakes, like Nintendo’s Virtual Boy and Amazon’s Fire Phone.

Brand research services for positioning strategies, brand mapping, and perceptual mapping can help you, whether you’re a small business or a long-time market player, to avoid pitfalls and the costly mistakes of failed brand positioning.

Common Branding Mistakes by New Businesses and Entrepreneurs

Do you remember Nintendo’s Virtual Boy in 1995? You might not because it’s one of Nintendo’s biggest failures in the history of the company. It didn’t offer what it promised, a true VR experience, resulting in incredibly low sales and quick removal from the market. What about Amazon’s Fire Phone in 2014? It only lasted one year because of its limited availability and features that didn’t resonate with audiences. Even major companies like Nintendo and Amazon have to be careful about product or service branding that can tarnish their reputation and result in massive profit loss.

Even small branding mistakes can cost a company. Not only will your efforts and time spent towards planning to be lost, but you will have cost your business a lot of money and even potentially tarnish your reputation permanently, which can be completely devastating for the longevity of a brand.

Below are seven mistakes that you can avoid when it comes to brand positioning so that you learn more about them and avoid them altogether:

  1. Lack of Competitor Research
    You have to learn about your competitors if you want to be successful. How do they position their brand? What types of products and services do they offer? How are they perceived in their respective industry? How are they succeeding? Do you have a potential opportunity in the market where they do not? You don’t want to identically replicate your competitor’s strategies. But you do have to learn everything there is to know about the successes and failures of your competitors so that you know how to uniquely position yourself in the market.
  2. Brand Messaging Doesn’t Suit Target Audience If you can’t develop a brand message that fits with your target audience, nobody is going to buy from you. You have to learn everything about your target audience like demographics, what they like to buy, where they shop, what times of the day or times of the year do they make purchases related to your offerings, what colors motivate and drive them to make purchases, what parts of the world are they located, how does culture affect purchasing, and many more.
  3. Failed Market Study
    Effective market research needs to be obtained about how people are reacting to your brand, products, or services. Survey analysis can be obtained to further your market research and understanding, or a complex study of social media research and analysis can help you to understand how people review or perceive you in the market. If you don’t analyze feedback from your customer base, you will be making a costly mistake in your brand research initiatives.
  4. Association or Dissociation with Events and Motives Just because you want to create a product or service or build your brand around a particular design or niche space in the market, doesn’t mean it will be successful. You can’t just build and sell tablets just because iPad’s are popular, create a bottled water company because you feel people will always need to drink water, or design makeup and cosmetics because there is a popular trend in that space this year. You have to delve deeply into your brand research strategy to truly understand the reasoning behind purchasing decisions and product and service popularity.
  5. Inconsistent Corporate Identity Everything about your brand identity has to make sense, from the colors that you choose to represent your company, to the logo and fonts that you use throughout your campaigns, to the style of writing, tone and messaging that you implement to speak to and reach audiences. Everything has to remain consistent so that people understand your brand values and what you are offering them. If you fail, you could spend a lot of time rebranding and causing confusion to your audience and miss a lot of opportunities.
  6. Poor Product Packaging

    Product packaging is the first thing people see when looking at your brand, whether they are online or physically in store locations. Everything from materials, graphics, size, shape, and color all are important elements of packaging designs. You could spend a lot of money rebranding your packaging if your product performs poorly. On the other hand, you might spend money rebranding your packaging when it isn’t even necessary and have to revert back to the way it was. Effective brand research is going to help you understand the best elements and packaging designs that will help your company thrive.
  7. Making the Wrong Impression If you are selling premium services, you don’t want to use commodity branding. You will deter audiences from your brand. There is a reason why so many fast food restaurant chains use the colors red and yellow, like Burger King, MacDonald’s, Wendy’s, and Carl’s Jr., and software companies use blue and black like Intel, IBM, Apple, or Google. People associate certain attributes to particular products and designs. People won’t understand what you are offering them if you make the wrong impression. Pay particular attention to detail and use the right research and analysis to make a lasting impression that makes sense with audiences.

How Brand Research Can Help

Brand marketing research is integral to the success of organizations in the modern world. In fact, no business out there that is successful in today’s market leaves home without brand research.

Brand research improves your competitiveness, visibility, and messaging and can help your business take a strategic position in the market using proven data from effective research and analysis services. Here are some of the major benefits of effective brand research:

  • Integrated Metrics: You can see the impacts of your project decisions and forecasts with measurable and tangible results.
  • Allocate Market Spend: Understand how to make investments that will lead to successful outcomes.
  • Identify Competition: You can not only find out who your competition is, but you can find out how and why they are successful in the market, or even discover how to position your brand in areas where your competition is lacking.
  • Develop Accurate Strategies: Create informed decisions built on a foundation of research and analytics with a better understanding of market developments, pricing, and positioning.
  • Capture Target Audience: Better understand consumer behavior and create effective marketing and advertising strategies.
  • Brand Perception: Truly understand how audiences feel and react to your brand, products and services.

Effective Brand Research for Organizations Across Industries

Research Optimus (ROP) has top research and analyst specialists who are tenured in market research, business research, customer analysis, and brand research services that provide the required insights to take the appropriate steps towards building effective and long lasting business brand awareness, brand marketing, and positioning strategies. Apart from services like market research, product research, and risk analysis, contact our team today to jump start or further advance your journey into brand research and obtain the targeted insights you need to avoid branding mistakes.

By: https://www.researchoptimus.com/

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Decision Analyst

An introduction to brand strategy, and the tangible and intangible elements that make up a brand. And a brief discussion of the questions of to ask in order to focus and improve your brand strategy. Learn More: https://www.decisionanalyst.com/servi…

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How Global Brands Can Build a Successful Local Brand Experience

One of the most noteworthy consumer trends to come out of Covid has been the shift in focus to community-based shopping. Of course, e-commerce has experienced a major surge, but many consumers are now searching online for shops and services in the local area to find what they need, especially as daily commutes are no longer the norm and people are avoiding unnecessary travel.

In addition to convenience, consumers want to support local businesses, as well as the communities in which they live. Shopping local isn’t just about frequenting small businesses, though. Big brands such as Marks & Spencer, Halfords, and Currys PC World are also thriving at the local level because they have a neighbourhood presence and are well-known, trusted brands that have, at least historically, conducted business predominantly offline.

But in the race to win the attention, and business, of these bricks-and-mortar shoppers, businesses must ensure their ‘Near Me’ Brand Experience (NMBX) – consisting of all the touchpoints along the customer journey from online ‘Near Me’ search to offline purchase – is meaningful and positive across multiple channels. Not only that, for global brands and multi-location businesses, this also means engaging with consumers at all levels, whether country, regional, or local.

While many companies manage these communications well at the global level, they often fall down when it comes to building positive relationships with customers at the local level.

Current research shows that around half of Google searches have a local intent, with consumers searching for products and services ‘Near Me’.  But consumers aren’t just searching for local store options. They are turning online to plan their journeys, evaluate local store reviews, and engage with brands directly through social media.

It appears that global brands have started to become aware of the ‘Near Me’ Brand Experience (NMBX) and its importance in their brand strategies, with Gartner’s recent 2020 Spend Survey of CMOs revealing that the most important brand metric for 2020 is brand health – namely, what consumers know and think about a brand.

The challenge for brands has always been that the bigger the brand – and the more locations there are to manage – the more difficult it is to maintain the quality and consistency of the customer experience. To create a memorable NMBX, brands must implement the right multilateral communications strategy that ensures the online to offline customer experience is uniform at the global, regional and local levels.

Create an outstanding NMBX

Global brands tend to have their business information and reputation management under control at the global, and sometimes even at the regional level, but this is often not the case at the local level.

This can be the result of organisational silos, where different levels of the organisation don’t share plans, goals, and processes with each other, or due to a simple lack of strategy and resources applied to actively manage the brand experience from top to tail.

The first step for brands to create a successful NMBX is to identify key stakeholders at the global and regional levels to lead the initiative. This project can then be owned at the global level by a single senior marketing lead – CMO or Head of Digital. Limiting key participants tends to generate better outcomes and more efficient project implementation, while still allowing for cross-departmental cooperation.

Develop brand trust through data accuracy

One of the most overlooked, yet vital, aspects of brand trust comes from consistent data quality. Especially now, consumers are searching online for the most accurate and up-to-date information on location, opening hours, and more.However, as local information is constantly changing depending on an outlet’s location, brands need to be able to manage all changes promptly and centrally. This means updating local level data directly via a master data system, or single source of truth, so it can be kept up-to-date across a brand’s entire directory ecosystem. If done right, this will increase visibility in search engines, increase trust and positively impact customer reviews.

When it comes to data accuracy, brands are facing a particularly difficult challenge, as operating restrictions during Covid vary not only country to country, but between regions and even neighbouring cities. Just like the UK, changing government guidelines meant McDonald’s Germany needed to update their opening hours on an almost daily basis. Because local store managers are always the first to know when key business information changes, they empowered them to log in to their in-house master data management system, powered by Uberall, and update the information quickly. This meant that McDonald’s could quickly and efficiently manage data for their almost 1,500 locations in Germany. As everybody was working from a centralized data management system, they were able to stay agile and consistently provide online store information that customers could trust.

For global organizations, ensuring data accuracy across each and every location is no easy feat. But doing so is essential to build and maintain global brand trust amongst local consumers and drive foot traffic.

Strengthen brand health through reputation management and social media

Another key aspect of brand experience is consumer engagement via online reviews and social media. Managing local reviews and engaging on social media effectively can pose unique challenges, as it can be difficult to know who should be engaging with local customers and how to do so at scale, whilst still maintaining brand ethos and identity.

However, online reviews and social media are golden opportunities for brands to interact with consumers the most directly, and, if well-executed, are a crucial way to turn those interested consumers into customers and advocates.

Depending on their aims and goals, brands can manage brand reputation and social media entirely at the global level, or choose to empower local owners/operators with more independent control. Regardless of the strategy, given the breadth and sheer volume of online reviews and social media interactions, a manual approach simply isn’t feasible.

Instead, brands can use digital solutions to manage and shape their online reputation and customer engagement, allowing corporate control but providing local teams with access to online interactions as needed. By utilising a platform that makes it easy and simple to respond, backed by clear guidance and communication about core messaging, brands can make certain that their brand experience is consistent and compelling from global to local.

Conclusion

Today’s commercial landscape calls for a modernised approach to brand experience. Brands that are able to utilise the right technology tools, processes and feedback loops will be able to achieve an outstanding NMBX for consumers at hundreds, and even thousands, of locations.

While global brand reputation will always be important, when it comes to fostering growth, brands must also focus on improving the brand experience at the individual store level. After all, no matter how good a brand is at creating an image of quality, consistency, and trust, if a customer’s experience doesn’t match that promise, they won’t be a customer for long.

By Paul O’Donoghue

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Brand Master Academy

Learn what brand experience is to design a journey that leads to the successful outcome your brand offers. —————-FREE BRAND STRATEGY RESOURCES——————– // PRO BRAND STRATEGY BLUEPRINT Download your FREE Pro Brand Strategy Blueprint here: https://brandmasteracademy.com/brand-… Step-by-step brand strategy development process // BECOME A BRAND STRATEGIST Take a FREE look inside our flagship training Brand Master Secrets – All you need to level up to brand strategy and become a brand strategist. https://brandmasteracademy.com/brand-… Our flagship training “Brand Master Secrets” has everything you need to become an in-demand brand strategist, raise your expert profile, and grow your branding revenue and business. // BRAND MASTER ACADEMY Brand Master Academy is where brand builders go-to for actionable tips and techniques to, Learn Brand Strategy, Help Their Clients On A Higher Level, Raise Their Expert Profile & Branding Revenue. —————- LEARN BRAND STRATEGY IN THE COMMUNITIES ——————– // BRAND MASTER ACADEMY ON SOCIAL Instagram – https://www.instagram.com/brandmaster… Facebook – https://www.facebook.com/pg/brandmast… Linkedin – https://www.linkedin.com/in/stephen-h… Youtube – https://www.youtube.com/channel/UCBFW… Twitter – https://twitter.com/BrandMasterAcad // JOIN THE FACEBOOK COMMUNITY https://www.facebook.com/groups/brand… Join in the conversation with other experienced and budding brand strategists to enhance your brand building systems. // EXCLUSIVE TIPS & TECHNIQUES https://brandmasteracademy.com/subscr… Get on the list for exclusive brand strategy tips and techniques —————- LISTEN TO THE BRAND MASTER PODCAST ——————– The Brand Master Podcast is a show specialized in helping professional brand builders and entrepreneurs to build brands using strategy, psychology, and creative thinking. [Two Shows Per Week] https://brandmasteracademy.com/brand-… About This Video: By the end of this video, you’ll understand what brand experience is, the role it plays in raising brand awareness, and converting prospects into clients. First, we’ll look at some of the terms that are often confused with brand experience and how they differ including experiential branding and brand activation. Next, you’ll discover what brand experience is and the ecosystem of touchpoints that contribute to it. Then we’ll uncover the misconceptions of what brand experience is not and understand why brand experience is so important in building modern brands. Finally, we’ll dive into what brand experience design is and take a look at a brand experience example in the form of Nespresso. 0:00 What Is Brand Experience? 1:21 What Is Brand Experience 2:24 What Is Brand Experience Is Not? 2:53 Why Is Brand Experience So Important? 4:30 WHat Is Brand Experience Design? 5:42 Example Of Brand Experience – Nespresso

How Exactly Does Content Marketing Help in Building Brand Awareness

Brand awareness is more than people simply recognizing your business name or your logo.True brand awareness entails your audience getting to know the personality behind your brand and what makes you different from your competitors.

It’s vital to build brand awareness because consumers are much more likely to buy from a brand they know and trust than one that’s new to them.A research study found that over 80% of people searching for a product on Google chose to click on websites they were already familiar with, regardless of their position in the results.

Content marketing can be a highly effective way to build brand awareness. With every piece of branded content an individual sees, they become more familiar with your brand. But while exposure is important, it’s not the only factor at play. Content can help to build your brand in several different ways.

Quick Takeaways

  • Content marketing is an excellent way to demonstrate knowledge and expertise and build trust with your audience.
  • The more content you publish, the more exposure you give your brand. Every piece of content has the potential to widen your audience.
  • Your content is an important part of your overall brand and can be used to amplify your brand voice and reinforce your commitment to your brand values.

1. Demonstrating Authority and Expertise

By regularly publishing informative and educational content that helps to solve your audience’s problems, you demonstrate the fact that you know what you’re talking about as an expert in your industry.

For example, take a look at the blog published by marketing and CRM software company, HubSpot. HubSpot publishes a lot of detailed and useful articles on subjects such as content marketing, web design, email marketing, SEO, and customer experience.

Most of these articles are not written with the aim of selling more software licenses. Nor, indeed do they even mention the products and services that the company sells.

This informational content is not published with the aim of making more sales, but rather to share knowledge and cement HubSpot’s position as an authority in the area of digital marketing.

The audience reading HubSpot’s blog may not immediately be looking for a marketing software solution. However, with each piece of content they read, they’ll build a stronger association between the HubSpot brand and marketing knowledge.

If at some point in the future they are in the market for a CRM or marketing automation software, they’ll already have HubSpot in mind and be confident in the brand’s experience and knowledge.

2. Building Trust

Consistently publishing helpful information for your audience not only helps to demonstrate your expertise and authority but is also vital for gaining the trust of your target audience.

People don’t like to feel like they’re being sold to or that brands only have an interest in gaining their business.

Content marketing means publishing content that’s not sales focused and demonstrates you care about your audience and their problems, rather than just making the sale.

The more content your audience reads and the better they get to know your brand, the more likely they will be to trust you. The more they trust you, the more likely they are to spend money with you in the future.

Source: Marketing Charts

3. Fleshing Out Your Brand Personality

Many brands offer very similar products and services, often at similar prices. Your brand personality is what distinguishes you from your competitors and builds relationships and loyalty with your customers.

Your content should reflect your brand values and mission. It should demonstrate what you offer beyond the products and services you sell.

Every piece of content you publish should also reflect your brand tone and voice. Whether this is fun and friendly, creative and quirky, or confident and informative depends on your audience, the industry you’re in, and how you want to position your brand.

Source: EndeavorCreative

To get this all right, it’s important to have a clear and defined brand, mission, value, voice, and content strategy that pulls it all together. Skipping over any of these steps will result in content that doesn’t have a clear voice or personality, and your brand will be weakened as a result.

4. Increasing Brand Exposure and Mentions

Every piece of content you publish gives you a new opportunity to expand your audience and reach more eyes.

Publishing content around the topics that your audience and customers are interested in is a highly effective way to boost your SEO. This means your site is more likely to come up in searches for keywords related to your business. The more content you publish, the more chances you have of showing up in search results.

Source: Oracle Modern Marketing Blog

Good content can help you to attract traffic from many other sources apart from search engines.

People share high-quality content on social media. Social media mentions are doubly effective because they not only help you to reach a wider audience, but a social share acts as a vote of confidence and demonstrates that others trust in your brand too.

This is increasingly important these days where 83% of consumers say they are more likely to buy a product or service if it is recommended by a friend or family member.

5. Building Customer Loyalty

Content marketing is not only important for attracting new customers but also to keep the customers you already have.

Strengthening relationships with your customers is also important for building your brand. When customers are loyal to your brand, they are more likely to recommend it to others.

Consistently publishing new content is a great way to stay in touch with your existing customers, keep your brand on their mind, and give them more opportunities to share your content and products with others.

6. Engaging Your Audience with Brand Storytelling

Everyone loves a good story. So it’s no surprise that much of the most successful content on the web involves some element of storytelling.

Likewise, some of the world’s most successful brands have a great story behind them. Just look at Apple (founded by college dropouts out of a garage) or Toms shoes (inspired by the travels of the founder and the barefoot children he met along the way).

If you can use content to tell the story of your brand in an engaging way, you’ll build an emotional connection with your audience that will make them want to read more, interact more, and buy more from your brand.

If you are ready to get more traffic to your site with quality content published consistently, check out our Content Builder Service.

Set up a quick consultation, and I’ll send you a free PDF version of my books. Get started today–and generate more traffic and leads for your business.

By Michael Brenner

.

Marketing Insider Group

The Marketing Insider Group provides content marketing workshops and content development services. Scale your content and start showing Content Marketing ROI today. Free Consultation

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Hinge

The number one criteria prospective clients use when they’re selecting a firm is expertise. In this video, Liz Harr shares the top 3 ways to demonstrate your expertise for greater visibility and marketplace reputation. For more content just like this, connect with Liz & Hinge: LinkedIn: https://www.linkedin.com/in/eharr/ Twitter: https://twitter.com/ElizHarr LinkedIn: https://www.linkedin.com/company/153024/ Twitter: https://twitter.com/HingeMarketing Facebook: https://www.facebook.com/HingeMarketing Professional Services Executive Forum: https://www.linkedin.com/groups/3828540

Is Digitization The Savior Of The Fashion Industry?

Digital Fashion

Digital transformation of fashion design and manufacturing is viewed as both an opportunity and a threat, depending on who you ask. The perceived threats include job security, creativity, and loss of the “human touch” in fashion design and garment-making. The opportunities span time and cost savings, vast and swift sustainability gains (including removing textile waste and reducing the need for dyeing, water use and the carbon emissions generated by physical sampling) and the ability to manufacture small quantities of products profitably.

Other creative industries, such as gaming and film, have adopted digital tools and subsequently platforms that link design, the beating heart of all the products created for human consumption, with every other person and process necessary to bring that design to life (whether that be on a screen or in physical form). It follows that these industries have therefore provided a blueprint for the digitization of fashion—or have they?

To put this debate into the current context, the sustainability pressures facing the fashion industry point to digital transformation being necessary, rather than optional. The rising cost of raw materials as the planet’s resources dwindle, the carbon and financial costs of manual garment sampling and shipping back and forth from manufacturers in Asia to Europe and the U.S., and the switch from two seasons per year to monthly (or weekly) product launches to keep up with social media trends, mean that the only way to meet global consumer demand is to digitize and streamline manual processes. Indeed, the question seems to be how can the industry progress in a manner that is sustainable, ethical and profitable without digitalization?

To draw parallels and find out what fashion can learn from the gaming and film industries, I spoke to Remo Gettini, a serial innovator who is ex-Dreamworks, and DWA NOVA, and now the CTO of the human-centric app-based community of 16 million buyers and sellers of fashion, Depop. What is holding fashion back? Why has digital transformation been so slow? What steps should the industry take to transform expensive, slow, manual, unethical, unfair and unsustainable practices into processes fit for today’s consumers, who want a paradox of constant newness (often personalized) within the planetary bounds?

As CTO at DWA NOVA, Gettini worked with brands ranging from Tommy Hilfiger to Nike and Burberry to navigate the digital landscape and define and implement digital solutions for product design, development and merchandising. “The fashion industry has the opportunity to increase its creativity way beyond what it can currently imagine,” says Gettini. What it lacks is access to human-centric technologies fit for the creative nuances and ephemerality of fashion design. “How do you express the value of a Burberry scarf in a 3D render?” asked Gettini. This is a tough question and one that is being asked by fashion brands, too.

Why has 3D digital design fallen so far short for fashion, I asked? The answer, according to Gettini, having spent decades orchestrating digital transformation as a solutions architect, technical director, and CTO, is that digital design has been borne out of engineering and is based on CAD/CAM solutions, which are “not creative or intuitive in a way that empowers designers.” His view is that the solutions on the market right now, CLO3D (one of the newest CAD solutions for fashion) included, are driven by technical specifications that still do not bridge the gap between creative design and product creation.

The width of this gap is astonishing if you think about the current turnover of styles and speed of fashion, paired with dwindling order volumes as e-commerce has ushered in a shorter shelf-life for styles that are driven by fleeting Instagram trends. This is a phenomenon Depop knows only too well as they provide a seamless platform that integrates social-media trends, e-commerce, and online communities.

The second barrier, he believes, is that solutions providers approach fashion like it was any other industry. They present the same tools to fashion as they do to automotive, aerospace and architecture. “This just won’t work with fashion,” he says. “Fashion needs a platform that plugs creative design into the supply chain painlessly and without designers having to change the way they work. This is fundamental. Designers should not be asked to drop their manual design and illustration techniques in favor of a mouse and keyboard.” To Gettini’s mind, this is where digital transformation “falls at the first hurdle.” So what is the solution?

Reflecting on the strategy of digital transformation at Dreamworks, he explained that they gave designers a tablet and pen so that whatever they drew was digitized—the action was the same, but the options for color, texture, and effects were greater. They expanded the designers’ toolkit, rather than changing it. This unleashed their creativity and the rest of the digital solutions were built around translating these digital sketches into products that could be manufactured via CAD/CAM solutions, seamlessly.

He stressed throughout our conversation that the technology “needs to disappear” and leave only the impression that the work is easier, better and more creative. “Human-centricity is the key to digital success.” In fact, at Depop, the users never talk about the app. They talk about “the experience, the friends they make, the communities they join, the clothes they buy—never the technology,” says Gettini.

What else would Gettini do to fast-track digital transformation in fashion? From a C-level perspective, he would hire new talent graduating from fashion colleges with 3D design skills and an appetite for creative digital design in place of traditional methods of fashion design. He would place these new recruits with the current crop of designers and task them with developing the next collections collaboratively, to leverage both approaches. Fundamental here is the integration of digital design in the actual design and development of products, rather than as an isolated “project.” “

There is no point running a separate pilot to dip your toe in—digital-native designers need to be introduced into the process as part of the business, not as an experiment,” he says. This triggers memories of views shared with me by digital designers working in siloed departments at global brands, who express frustration that digital solutions are adopted within their departments, but do not influence or integrate with other departments, or the supply chain. The very “project” approach that Gettini warns against is a common approach, it seems.

So what does the digitization of fashion design mean for the future of Depop? Depop currently has 16 million buyers and sellers of fashion on its app (the tip of the iceberg, according to Gettini), and in all likelihood, they have the next generation of fashion designers on their platform, too. What would happen if the Depop community could create and share digital fashion designs for crowd-vetting, that are connected to digital manufacturing facilities allowing production on demand, to the quantity determined by the seller (and demanded by the Depop community)—a kind of “Unity for fashion,” as Gettini calls it? This is something that Depop is currently looking into as a possible evolution of their fashion platform. This example further illustrates how 3D digital design has the power to provide fashion-on-demand in a more sustainable manner than the current model of overproduction and inevitable deadstock creation.

During a recent conversation with Kees Jacobs, head of insights and data, global sector consumer products and retail at consultancy firm Capgemini, he explained that in the past decade, digital fashion solutions have been prioritized in consumer-facing domains (website, mobile, in-store experiences) where tech solutions can increase customer engagement and facilitate customer services. On the subject of 3D digital design adoption, his experience has demonstrated that “the urgency to do this is less. The top line (for digital solutions) is retail.”

He went on to state that “we see a big shift happening with digital twins of consumer and products and where the two meet.” Regarding the top two investments fashion retailers should make that promise good ROI, the first was data analytics solutions, and the second area was “consumer engagement and the digital avatar (to allow) the use of CGI to be able to have digital experiences around the products.” Who should retailers look to for these solutions, I asked? Capgemini is working with large players (including Microsoft) and a number of smaller, highly specialized startups to deliver on digital avatars, products, and experiences.

It seems that a potential future direction for the fashion industry is implementing digitized fashion illustration at the first stage of design to connect to 3D CAD/CAM software and equipment for on-demand manufacturing, then eventually the digital product presentation tools at the consumer end. Of course, this is dependent on 3D design tools being adopted by designers and brands, which still proves to be a challenge, based on the views of Gettini and a number of designers I have spoken to at global brands. The challenge is largely due to the technical nature of the interfaces currently on offer to fashion designers via 3D design software.

In addition, the preference for hand-drawing and painstaking manual design techniques still dominates amongst senior designers and creative directors (for whom the design and development processes are often structured to accommodate). Indeed, 3D digital design is still notably absent from the curriculums of top fashion colleges, with many 3D digital designers being self-taught (or from a gaming or film background). The fashion design students I have spoken to who are exploring 3D digital design are learning from online tutorials and forums in place of being taught formally at university. If a “Unity for fashion” does emerge, a new generation of fashion designers who buck the tradition of a fashion college education may yet define, and design, the fashion of our future.

Follow me on Twitter or LinkedIn. Check out my website.

I am a sustainability and fashion tech journalist, innovator and public speaker with several years of experience working across this growing sector. I am also Director of the innovation agency BRIA, where we create materials-tech collaborations and sustainability innovations with brands from both the fashion and technology sectors, directly combining my knowledge of the latest developments in fashion tech with my cross-discipline approach to developing new materials. As one of few specialists with career experience of working in the fields of both science and design, as well as previously running a fashion brand, I use my expertise to write about the new emerging sector of fashion tech, along with the advances which will drive sustainability in the fashion industry. I have written for a number of publications, including HuffPost and my own platform, Techstyler, and have been invited to speak about fashion tech at numerous conferences and events, including delivering a TED talk.

Source: Is Digitization The Savior Of The Fashion Industry?

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