How digital transformation leverages sustainability in the fashion industry
Digital transformation has given incredible power to customers and fashion retailers to make a positive movement for sustainability. The connected world of social networks has affected customer perceptions of fashion and also customer behavior by raising awareness. New emerging digital technologies are transforming the fashion industry in a more responsible way and making it focus more on how it creates value for its customers and the planet. Without doubt, Covid-19 is one of the key accelerators of concerns about sustainability in this fast-moving sector. Today, the fashion market depends on digitalization and customer demand more than ever.
In 2019, the UK House of Commons Environmental Audit Committee released a detailed report on the social cost of our clothes. It is no longer a secret that fast fashion remains one of the main reasons for global pollution. Regarding the report, here are some key facts on the fashion industry:
Blockchain for Transparency
Blockchain technology plays a crucial role in traceability and transparency in the fashion industry. We are all familiar with the word ‘Blockchain’ thanks to cryptocurrencies, such as Bitcoin. As we know, the technology relies on recording various transactions digitally. These transactions create a chain by being linked together. For more technical details, here is the complete guide of the Blockchain.
Digital transformation allows its adoption and quick implementation by different sectors. Currently, Blockchain technology represents one of the core priorities for fashion brands to enhance their accountability and even tackle climate change. The supply chain is one of the most fundamental issues to be addressed for a sustainable fashion approach. Each step and component of the supply chain — including raw materials, manufacturing, transportation, and working conditions — should be tracked to create a sustainable, accountable, and transparent system for everyone. Blockchain has come to the rescue: The most common adoption of the technology is for the traceability of the supply chain within mobile applications, QR codes, and cloud-based solutions. And as blockchains can be public or private, if public blockchains are used, anyone can follow the transactions. Therefore, the technology has become a popular way to increase transparency for fast-fashion brands.
In 2017, London-based fashion designer Martine Jarlgaard created ‘smart labels’ in collaboration with Provenance — a platform and consultancy for transparency. All the information and data concerning the materials used, locations, workers, and manufacturing was recorded on a blockchain. Thus, customers can visualize the whole journey of each design by scanning the QR codes on the labels within an app.
“Blockchain-powered transparency in supply chains empowers the involved partners by giving them a voice as well as holding everyone accountable.”
Recently, the British luxury fashion house Burberry presented a new digital prototype called ‘Voyage’ in a partnership with IBM. The tool is designed to show a product journey across the supply chain through a cloud system. Each product ID pairs with accurate data at various points along the supply chain. By scanning a QR code, customers can see the story, origin, and suppliers on an interactive digital map. Users can also add additional information about the product lifecycle after the purchase -such as recycling, repair, and upcycling.
This new feature reminds people of their responsibility as consumers for over-consumption and textile waste. It is considered a successful initiative for the sustainability agenda of Burberry through the combination of cloud and blockchain technologies. Their commitment to sustainability remains ambitious: The British fashion giant is aiming to have sustainable production of all leather and cotton while improving the conditions on the supply chain. As a result, the digital transformation is aiming to become a game-changer for the luxury fashion market.
Google itself is directly involved in cloud-based fashion sustainability solutions. In 2019, Google entered into a partnership based on its cloud infrastructure with British designer Stella McCartney. The pilot project aimed to reveal the impact of various raw materials on global pollution through data collection across the supply chain. All kinds of information concerning the materials used for the production are registered on the Google Cloud. And lately, Google announced a new partnership with WWF Sweden to create an open-source data platform that provides valuable information to fashion brands about their sourcing decisions. The platform that combines advancing data collection with cloud technology helps retailers to make their production decisions responsibly.
“Partnering with WWF brings together Google Cloud’s technical capacity, including big-data analysis and machine learning, and WWF’s deep knowledge of assessing raw materials. Together, we can make supply chain data visible and accessible to decision-makers, and drive more responsible and sustainable decisions.”
AI for On-demand Model
The fashion industry ranks as the world’s top three polluter due to overproduction, increasing return rates, and dead stock. ShareCloth, a computer software company based in the United States, uses artificial intelligence and machine learning to deal with all these concerns.
Their digital ecosystem consists of four steps & four digitalized solutions:
- Design
- Sourcing
- Fitting
- Sales & Delivery
First, the cloud-based design service based on 3D sampling enables retailers to create digital clothing samples. The virtual sample leads to change in manufacturing: More automated process. ShareCloth calls it ‘robotic apparel production’. The system analyzes the information about sewing and cutting of each product.
Second, the platform empowers on-demand modelling: The production phase is started only after the payment. So, sourcing is also based on an automated process. The system can associate retailers with local partners for manufacturing.
Third, customers can find the exact fit through customized features and virtual fittings. The company developed new software called BodyPass to decrease return rates because of the wrong size. The BodyPass allows customers to have digital bodies with measurements and assist them like a store consultant. The app uses 3D sample technology and machine learning to improve its size suggestions depending on products and customer preferences. To figure out how it works, check the video. The last point, retailers can track the sales and shipping process while measuring customer satisfaction.
ShareCloth’s automated process empowers conscious production, consumption, and eventually sustainable fashion in several ways: No more overproduction, less dead stock, and lower return rates!
There are so many reasons to adopt digitalized solutions for the sustainability goals of fast fashion. Traceability of the supply chain, on-demand production, digital mapping of the whole process from design to delivery, and accurate data collection for sourcing decisions will help move brands towards being more responsible and conscious in the future.
Increasing transparency has a crucial impact on the implementation of sustainable business models and customer behavior in the fashion industry. Ultimately, digital transformation is a valuable and positive development for retailers, customers, suppliers, and workers.
About this article
This article has been written by a student on the Grenoble Ecole de Management’s Advanced Masters in Digital Strategy Management. As part of a content creation assignment, students are given the task of writing articles based on their digital interests and disseminate the articles online. Articles are marked but we make minimal changes to the content. Thanks for reading! James Barisic, Programme Director, MS DSM.
