The growth of any sector has a lot to do with innovation. It’s about finding new ways The COVID – 19 epidemic has hastened the digitalization of the fashion sector, especially luxury companies. They have traditionally been hesitant to adopt electronic and digital commerce in the past. Hence, e-commerce in the United States has had a ten-year growth spurt in just 3 months in 2020.
While luxury companies’ brick-and-mortar stores still hold a large market share, the coming future of conversation media usage unquestionably involves a strong digital component. To that aim, luxury brands should evaluate a variety of digital developments in 2021, as well as the significant legal problems that they present (and beyond).
NON FUNGIBLE TOKENS
Non-fungible tokens, or NFTs, are unique digital assets that can represent items, such as pieces of art, movies, and even digital (or real) clothing. They have been around since 2014, but 2021 will be their mainstream moment.
Multi-million dollar auctions organized by artists by luxury brands like Gucci, Burberry, Louis Vuitton for their NFTs to increase their reach to their digitally connected consumers.
With the rise of secondhand fashion and the growing market for counterfeits, the sale of fake or counterfeit luxury products has gradually increased. This is not as simple as it sounds but NFTs can be used to track the origin of physical items and then utilized to help in authentication attempts.
This might help in restoring the customers in an industry plagued by counterfeiting scandals.
Virtual try-on allows customers via webcam or devices equipped with camera smartphone 6 17 2 sample products. This enables customers to try anything from jewelry, cosmetics, to even perfect-fitting sneakers. Virtual try-on has become noteworthy more because of the covid-19 pandemic which has accelerated the adoption of E-Commerce channels to a large scale.
According to a recent study by Snapchat and Foresight factory, 35% of US customers would prefer going to a store if they had interactive virtual services there they could try clothes using a smart mirror and can even try makeup using it plus according to a study 62% of consuming consumer’s claim that IR has encouraged them to make a purchase.
Virtual try-on surely works towards the benefit of the brands but they are also prone to a range of risks, the most important one of which is compliance with biometric laws and regulations.
These laws regulate features like facial recognition, templates, and other biometrics. A lot of brands have been called out and for legal action because of these laws. Cosmetic powerhouse brand Mary Kay and Ulta were faced with legal action for violating these laws.
They failed to get consent before collecting scanned videos and pictures of the consumer’s face and had to pay $1000 for negligent violation and $5000 for “willful or reckless violation,” or actual damage. Therefore, such laws are important because they keep a check on the working of these brands and make sure that the consumer is not harmed in any way by it.
E-COMMERCE: EMERGING CHANNELS AND CHALLENGES
The point and make has surely changed the way from how consumers used to purchase before namely by supercharging in The E-Commerce sector. According to some stats, the e-commerce sector grew from 16% to 19% of global retail sales.
Some stats also stated that people who previously were uncomfortable using e-commerce were now more drawn towards digital consumption and we’re planning to continue it.
Plant methods led to an increase in demand for convenient streamlined E-Commerce experience and immediate. To meet such demands for the consumers, brands have adopted E-Commerce strategies like omnichannel which helps them to sell across digital channels.
This important tool in brands in particular helps with streamlining purchases by selling products directly on different social media platforms. Hence it has become an important sales channel during the pandemic, especially among Gen Z and Millenials.
With all these advantages social commerce is also prone to certain challenges. For example, and won’t be able to make a direct relationship with the consumers. There will also be important legal considerations regarding who is responsible for making required consumer disclosures, maintaining data security, and processing returns.
Brands also have to go through different terms, restrictions, and other requirements related to social commerce on different social media platforms. Online marketplaces are also home to a certain degree of anonymity and counterfeiters.
This allows them to sell knockoffs for luxury goods by social media influencers. For example, if you, search for #NikeAirForce the feed will reveal a large number of counterfeit designer shoes. These are widely available all over the internet also. One can combat this online piracy by adopting multi-pronged protection monitoring and enforcement strategy.
OPTIMIZING RETAIL WITH BIG DATA
Brands and retailers have finally started increasing the use of Artificial Intelligence and machine learning to evaluate the cost of data points and to optimize every aspect of supply chains. Brands can analyze demographics, shopping patterns, past purchase behavior to actually understand what the customer wants and needs.
In particular, it helps a brand to effectively market a product to them and this can be done through cloud computing. With the proper use of such big data’s brands can have several benefits.
Understanding consumer behavior can help a brand by having lean and sustainable inventory management. If a brand produces fewer products and produces products according to the needs of the consumers this will help them by not having unnecessary waste and they can market it more effectively.
This also promotes the demand for environmentally friendly products, especially among the younger generations.
Brands can also now leverage data tools to analyze internet searches, E-Commerce sales, consumer feedback, and post to project their suitable fashion trends. This will help the brand to understand the needs of the consumer. For example, this will help the brands to understand which products to launch or retire or which product to produce and where to open new stores or inventories.
It also helps with recommending suitable products to the consumers by analyzing their browsing and purchase histories. This will help brands to give the consumers a tailor recommendation which will promote higher sales conversions.
In this way, the online fashion industry has been flourishing in these coming times, and with the right steps taken this can be a boon to the e-commerce industry. Hope this helps. Happy reading!