1、Technology Trends That Will Shape the Global Fashion Industry in 2023 Copyright|CONTENT0305071013151618IntroductionTime For Shake UpPhase 1 Design Phase 2 ManufacturingPhase 3 Inventory&DistributionPart 4 Marketing&Retail Future of ClothingSummary Generative AI becomes co-designer3D prototyping for

2、quicker samplingFit-Tech for better sizing solutionsNew-age smart fabrics Digital factories get smarter Sourcing marketplaces Using blockchain to improve traceabilityOn-demand 3D printed productsAdvancements in soft robotics Real-time factory management with ERP NFTs to combat counterfeit issues Mov

3、e towards D2C model Advancements in warehouse automation AR/VR for virtual shopping Live video commerce AI-based digital stylists Rental/Resale/Repair models gain groundWearables Digital-only fashion Circular fashion Copyright|03INTRODUCTIONThe fashion industry is one of the most exciting and dynami

4、c industries in the world.It has grown exponentially in recent years,but its not without its challenges.In this white paper,well explore how technology is shaping the future of fashion,what the biggest threats and opportunities are for players in the industry,and what you can do today to prepare you

5、rself for success tomorrow.We will cover various aspects such as how e-commerce is changing traditional retail models;how consumers are becoming more selective about what they buy and where they buy it from;and how new innovations such as blockchain are forwarding the future of modern supply chains

6、across industries.Well also discuss some of the most exciting trends that are shaping the future of fashion at largefrom 3D printing and custom manufacturing to augmented reality technologies like blockchain-based smart contracts or clothing that can track your heart rate and more.A look at the curr

7、ent state of the global fashion industry and all its key playersDespite new waves of COVID-19 and subsequent lockdowns that resulted in other restrictions on global markets,global sales of apparel and footwear grew by 12%y-o-y in constant terms in 2021,with an estimated$2.5 trillion in sales expecte

8、d by 2026.This growth comes as no 1surprise when you consider how much we spend on clothingeven when compared to other categories like cars or electronics!The average American spends over$1,800 on clothes each year 2.While that number may seem high,it doesnt even scratch the surface of the global fa

9、shion industrywhich has an estimated value of somewhere between$1.5 to 1.7 trillion.One of 3the largest sources of global revenue,the fashion industrys value is larger than the economies of all but a handful of countries.It is also one of the most labor-intensive industries,with an estimated Size of

10、 global apparelindustry by 2026People employed bythe fashion industryLVMHs marketvalue in 2022$2.5Trillion60Million$367BillionNikes market valuein 2021$84Billion Copyright|0460 million people employed in clothing and footwear manufacturing alone.4The industry is also home to some of the world bigges

11、t and most popular brands.For instance,Nike valued at$84 billion had the biggest brand value of any apparel brand in 2021.On the luxury end,Louis Vuitton-parent LVMH had a market capitalization of 367 billion dollars in 2022.5However,the fashion industry is also one the largest contributors of pollu

12、tion and waste.The production of fashion goods accounts for about 10%of the worlds greenhouse gas emissions.The apparel industry 6uses more than 93 billion cubic meters of water per year,which is four percent of all freshwater extraction globally.The fashion industry has 7been facing criticism for i

13、ts environmental impact in recent years.There are many reasons for this,including the growing demand for fast fashion,which creates a need for greater production capacity and speed at every step of the supply chain.Consumers are now more aware than ever of how their choices impact the environment an

14、d human rights.The negative impacts of fast fashion are well documented and the industry has been criticized for its failure to respond to this criticism with any meaningful action,apart from producing more sustainable marketing campaigns.As a result of this pressure,the industry has been forced to

15、change.Companies like Patagonia,Stella McCartney and more have led by example by creating products that are sustainable from beginning to end,including materials sourcing and supply chain transparency.Copyright|05TIME FOR A SHAKE UP The global fashion industry is experiencing a time of great change.

16、While the sector has historically been slow to adopt new technologies,recent technological developments have caused the industry to shift its thinking.With fashion being a part of every aspect of our lives,modern technologies will inevitably shape the way we think about,create,and consume fashion.In

17、 fact,technology is already changing how the fashion industry operates.It is presenting new opportunities for brands and retailers to offer consumers a more personalized experience.But those are not all our worries,there are also some fantastic opportunities for companies who can find ways to levera

18、ge modern technologies and make the most of new innovations.This whitepaper will help you understand how innovation will change this industry in the near future,what challenges are being overcome,and where your business can take advantage of these changes in 2023.Fashion is one of the most resource-

19、intensive industries on earth,with significant impacts on the environment through resource extraction,production and transportation.The industry is also highly fragmented and complex,with an estimated 200,000 brands operating in more than 100 countries selling thousands of different types of product

20、s.These factors have led many experts to predict that technology will play an increasingly important role in shaping the future of fashion.The fashion industry is a large and complex system.It is important to understand its structure and how the various parts interact with each other.This white pape

21、r is structured to follow the four key phases of a products lifecycle and will give you an idea of how technology is disrupting each stage of the fashion production cycle.Well take a look at how consumers will interact with retailers,how brands will communicate with consumers,and even how they will

22、source their products.The fashion sectors growth rate is impressive,but there are still several glaring challenges in this industry:Rising costs associated with production Lack of transparency between brands and customers Increasing competition from new entrants into the market Rising expectations a

23、round the quality and price of products Blurring lines between online and offline experiences Consumer expectations for customized and personalized experiences and more!Copyright|06THE FUTURE OF FASHIONThe future of the fashion industry will be a combination of technology,data and design.The industr

24、y is moving towards more personalized experiences for both the consumer and brand.Brands will continue to rely on technology to help them create better products faster,while consumers will use their devices to shop in new ways!Copyright|07TREND#1 Generative AI becomes your co-designer AI-generated d

25、esigns will be a hot topic for 2023.The technology is still in its early stages,but its already being used by some brands to create new products.AI is used to generate ideas based on existing trends and consumer preferences,then designers tweak those suggestions before putting them into production.T

26、his is a big shift from how brands create products today.In the past,designers would come up with ideas and then present them to consumers for feedback.With generative AI,that process has been flipped on its head,the technology generates ideas first,then humans can work on perfecting them.PHASE 1-DE

27、SIGNAI-generated design will become an important tool in the fashion designers arsenal.Designers will use AI to generate ideas based on existing/upcoming trends and consumer preferences and then tweak them in their own style before production.Copyright|08Some examples of generative AI include Amazon

28、 Lab 126s GAN tool,which uses machine learning to create fashion designs based on customer data and trends.CALA,that reimagines DALL-E as a clothing designer,allows designers to sketch,prototype,and produce new products.Most recently,Antwerp-based fashion designer Flora Miranda used AI,data and gene

29、rative design to turn peoples Facebook history into personalized garments.TREND#2 3D Prototyping to speed up samplingThe use of 3D design and printing technology has exploded in recent years,and many companies are now using it as a prototyping tool.Its much faster than traditional methods like hand

30、sketching and stitching muslin pieces which can take weeks to produce just one sample.In the past,fashion brands had to wait for samples from manufacturers or factories before production could begin.But with 3D printing,designers can create prototypes in hoursand sometimes even minuteswhich means th

31、ey can iterate more quickly and efficiently.The benefit of this technology is that designers can create a unique,custom fit for their customers.This can be especially useful for brands who want to offer plus-size clothing or those working with extremely specific body types.3D prototyping is already

32、being used by most big fashion businesses and the technology is only going to become better and more widely used in the coming years.TREND#3 Using Fit-Tech solutions for smarter sizingFitting technology is another emerging field that promises to help brands offer more custom-fitted clothing.When cou

33、pled with 3D printing,Fit-Tech allows designers to create garments that are more comfortable and flattering for their customers.Fit-Tech encompasses a range of different technologies,including artificial intelligence(AI),machine learning(ML)and computer vision algorithms.These tools allow brands to

34、measure the body dimensions of their customers and use this information to produce better fitting clothes.Some important startups in this space include True Fit(an AI-based fitting solutions provider for fashion retailers),3DLOOK(an AI and cloud-based 3D body scanning app for fashion),Obsess(AR/VR-b

35、ased fashion shopping solutions provider),and (SaaS-based AI-enabled Bold Metricsvirtual trial fitting solution)among many,many others.Copyright|09TREND#4 New generation of smart and sustainable fabricsWe are entering an age of smarter and more sustainable fabrics,with innovations that improve perfo

36、rmance while reducing resource use.Advanced technologies such as nanotechnology and AI are being used to create fabrics that are both environmentally friendly and highly functional.The future of fashion is here!For example,Sensoria is a wearable technology company that uses sensors to track body mov

37、ements and provide real-time feedback.The company has developed athletic apparel that tracks heart rate,breathing patterns,muscles tension and movement during exercise.It also offers a line of smart socks that measure gait analysis to help people improve their running form.There are many other playe

38、rs in the textile innovation space.is a Nanotexcompany that uses nanotechnology to create fabrics that are stain resistant,self-cleaning and antibacterial.The companys products have been featured in the London Fashion Week and it has received funding from big names like Richard Branson.Another compa

39、ny that made waves in the luxury fashion world with its Hermes collaboration is MycoWorks who specializes in making leather from mushrooms.Copyright|10Solutions such as WFX Smart Factory allow companies to monitor their operations in real-time through visual dashboards that can viewed on TV screens,

40、laptops,tablets and smartphones.WFX Smart Factory automates the collection,processing,and analysis of data through RFID tags and sensors for the entire supply chain.Phase 2-MANUFACTURING TREND#5 The digital factory is becoming smarter than ever The concept of the smart factory has been around for ye

41、ars,but its implementation is only just now starting to become reality.The idea of a smart factory is to automate as much of the manufacturing process as possible,while also using information technology to improve visibility and make all aspects of production more efficient.This will allow manufactu

42、rers to produce high-quality goods faster and cheaper than ever before.With the rise of nearshoring,manufacturers are beginning to realize that they need to take advantage of new technologies to manage their decentralized operations more effectively.This is especially true for those who have moved o

43、r expanded their manufacturing facilities outside their home countries and need to react quickly to changes in demand.WFX Smart Factory can help not only with meeting customer demand,but also with reducing waste and increasing efficiency throughout the supply chain.This means that businesses can pow

44、er up their production floor and produce more high-quality products.They can reduce errors and shorten their time-to-market.Copyright|11In addition,smart factories allow companies to improve the working conditions for their employees.For instance,they can use data to understand where bottlenecks are

45、 occurring in production and then redesign those processes so that they run more smoothly.This will reduce errors which can lead to better quality products being produced by the factories.TREND#6 Sourcing marketplaces for suppliers and factoriesOne of the biggest challenges for companies that want t

46、o work with factories is finding suppliers and manufacturers that can meet their needs.While many companies have international suppliers or partner,they may not be able to produce products quickly enough or make changes on demand.Nearshoring is big trend for 2023 which means we will need advanced so

47、urcing marketplaces to minimize this problem by allowing businesses to find the right supplier for the job in real-time.These marketplaces will help companies reduce risk in their sourcing operations by opening up newer geographies and opportunities.They will also make collaboration easier for compa

48、nies who want to work with factories in other countries,since they can communicate with their suppliers via the platform.This will help companies find suppliers that can meet their needs and allow them to easily scale production whenever they want.The advanced sourcing marketplaces of the future wil

49、l also help companies implement and support better sustainability practices in their supply chains.By using AI and machine learning,these platforms will be able to monitor the efficiency and effectiveness of each suppliers operations as well as identify any problems.TREND#7 Improving supply chain vi

50、sibility with blockchain A blockchain is a technology that records data in a way that makes it exceedingly difficult to tamper with.By recording all information about the entire supply chain on a blockchain,businesses can ensure that they know where their products are being made and by whom.This inc

51、ludes information about where materials are sourced from and shipped to,as well as which parties are involved in each step of the process.This can help businesses ensure that their suppliers are meeting quality standards throughout the production process and provide customers with more information a

52、bout what goes into their products.This can also help them avoid buying counterfeit goods or supporting unethical labor practices,something that many brands have struggled with in recent years.Copyright|12In addition,blockchain technology can help businesses track the movement of their products thro

53、ughout the supply chain.This can be helpful in cases where there are issues with quality control or when a product has been recalled.It also makes it easier for companies to monitor how their suppliers are handling products after they have been shipped out.TREND#8 On-demand 3D printed productsOne of

54、 the most exciting trends in 3D printing is the ability to produce customized products on demand.This has been made possible by 3D scanning and printing,which allows companies to collect data about yourbody or an object and then use that information to create a product just for you.This can be usefu

55、l for everything from clothing retailers that want to offer their customers a custom fit,to medical providers who need equipment made specific for their patients.Companies like Nike and Adidas are already using 3D printing to make shoes for their customers,while companies like Carbon&Stratasys have

56、developed machines that can print an entire shoe in a single run.This trend is also being used for the creation of unique jewelry,art pieces and even furniture.The ability to create customized products on demand will continue to grow in the coming years as 3D printing technology becomes more accessi

57、ble and affordable for both businesses and consumers.TREND#9 Advancements in soft robotics The use of soft robotics is becoming more popular among manufacturers and researchers as they look for ways to improve the design and functionality of their products.Soft robotics will help manufacturers and w

58、arehousing companies overcome some of the limitations that traditional robots have,when it comes to performing tasks like grasping,sensing and mobility in environments that are too dangerous or delicate for humans.Soft robotics are also a way to address the shortage of skilled labor in the garment m

59、anufacturing industry.Soft robots are seen to automate tasks that were previously done by hand,such as sewing and stitching garments together.They can be used for tasks like cutting fabric or packing boxes with garments without damaging them or needing any human intervention.Copyright|13TREND#10 Rea

60、l-time factory management with centralized ERPMany companies are still using on-premise legacy systems to manage their factories.These systems are often disconnected from each other and dont have the ability to communicate in real-time.They also require manual data entry,instead of connecting direct

61、ly with IoT devices on the factory floor and often lead to more errors and redundancy.The next big shift in garment manufacturing is real-time production management and data-driven decision making.Every successful company will invest in a centralized cloud-based ERP system such as WFX Apparel ERP th

62、at can connect machines,robots and people in real time to track production status,quality control,inventory management and more.This will enable companies to act on data as its generated through smart visual dashboards,instead of having to wait for reports at the end of the week.Real-time management

63、 is becoming more important because manufacturers are faced with mounting pressure from customers and shareholders to improve efficiency.Theres also an increasing demand for transparency in the supply chain.Customers want to know where their products come from,how theyre made and what impact that ha

64、s on the environment.Whats more,many manufacturers either have opened or are opening factories outside of their origin countries to support the demand for nearshoring.This makes the job of a central cloud ERP all the more important.Having a real-time system that connects all different aspects of the

65、 business will help manufacturers meet the rising demands for transparency and traceability.The use of a cloud-based ERP solution allows companies to easily integrate data from multiple applications into one place,making it easier for employees at all levels in the organization to have access to rea

66、l-time information about their work as well as sharing data with other departments.Phase 3-Inventory&Distribution Copyright|14TREND#11 Non-fungible tokens to help combat counterfeit issuesThe use of non-fungible tokens in the apparel industry is becoming increasingly popular,as they can help to comb

67、at the growing problem of counterfeit goods.This technology provides a way for brands and manufacturers to ensure that their products are authentic by using a blockchain or other distributed ledger system.Non-fungible tokens can be used on their own or in conjunction with other technologies such as

68、RFID tracking tags and QR codes that provide added security features on top of traditional barcodes.The apparel industry is no stranger to counterfeiting,which can cause problems for both consumers&brands.The use of non-fungible tokens(NFTs)can help brands prevent counterfeit goods from entering the

69、ir supply chains by creating a unique digital fingerprint that identifies each product.NFTs are also useful in providing consumers with additional information about a product before they purchase it or return an item that doesnt meet their needs.TREND#12 Brands moving towards a Direct-to-Consumer mo

70、delWith consumers becoming more comfortable with shopping online&the rise of social media influencing their purchasing decisions,brands are shifting to a Direct-to-Consumer(DTC)model.This allows them to have more control over their inventory,pricing&customer service while also increasing brand recog

71、nition.Brands can offer personalized experiences in which they collect data on customers preferences and provide relevant offers based on that information.They can also use this information to create targeted ads and even products for specific audiences.This model helps brands keep up with the deman

72、ds of customers,who are using social media to voice their opinions and share their experiences.The DTC model also allows brands to be more transparent about their products&services,which can help them build trust in a competitive marketplace.TREND#13 The next league of automated warehousesAutomated

73、warehouses are an emerging trend in the logistics space.These facilities use robots and other technology to automate much of the process of moving goods from point A to point B,thereby reducing labor costs and enabling companies to offer same-day or next-day delivery.Automated warehouses are more co

74、st-efficient than their human counterparts and can process more orders at once.They use sensors and computer vision software to track inventory and order products from suppliers automatically.Automated warehouses are already being used by several companies,including Amazon&Walmart.They are especiall

75、y useful for retailers that need to process massive amounts of orders in a short period of time,for example,during the holiday shopping season.Copyright|15Phase 4 Marketing&Retail TREND#14 Using AR/VR for virtual shoppingVirtual reality(VR)and augmented reality(AR)have been used primarily in gaming

76、and entertainment,but now they are also starting to be used by fashion brands and retailers.VR allows users to experience a 360-degree view of products,while AR overlays digital images on top of the real world.Retailers can use this technology to allow customers to try on clothing or view furniture

77、in their homes before they buy it.Theyre also starting to integrate AR/VR into their stores and websites through mobile apps that let customers see what specific items look like on them before purchase.These technologies will allow retailers to create more immersive shopping experiences that keep cu

78、stomers coming back for more.AR/VR is also being used to help retailers with their marketing efforts.An example of this could be a brand using these technologies to create more engaging ads that let customers interact with the brand in new ways.This could be through AR ad integrations for a movie co

79、ming out this summer where people are allowed to try on costumes from the film.Copyright|While these technologies are still being worked upon and developed further,we are going to see many implementations in real world scenarios in 2023.For example,B2B digital showroom solutions such as WFX Virtual

80、Showroom turned out to be a big boon for manufacturers,brands and buyers for conducting virtual showroom appointments during the pandemic.WFX Virtual Showroom allows companies to create an easy to use,customizable and scalable digital showroom.It can be used as a standalone solution or integrated wi

81、th existing systems like PLM or ERP.With the increasing adoption of smart devices and mobile apps,we are going to see more use cases for augmented reality and virtual reality.These technologies have already started making their way into businesses in many different ways such as showing 360-degree vi

82、ews of products on ecommerce websites or providing customers with walkthroughs of new homes they are looking to buy off the plans.16TREND#18 WearablesThe future of fashion is wearable technology,and this will change our relationship with clothing forever.The rise of wearable tech in recent years has

83、 been driven by the popularity of fitness trackers,but in 2023 we will see more user-friendly smart garments enter the market as brands like Apple and Google continue to innovate.The first generation of wearable technology was focused on fitness,but we can expect to see the focus shift towards featu

84、res such as connectivity and personalization.This will allow brands to create garments that are more than just clothes;theyll become extensions of our personalities and lifestyles.Its not just clothes that are becoming smarter;we can expect to see a rise in the number of brands offering connected ac

85、cessories such as shoes and bags.Consumers will have the ability to track their fitness data,order products on the go and share their travel experiences with friends via social media.As wearables continue to evolve,so too will our relationship with themin fact,we will even come to regard them as ess

86、ential parts of our lives!The future of wearable fashion is bright,but there are also plenty of challenges that we will need to address in 2023.The rise of wearable technology will also raise concerns over privacy and security as brands begin to incorporate biometrics into their products.If a brand

87、can collect data on how and where you wear their clothing,they can use this information to target consumers with personalized marketing messages,which some consumers may find invasive.In addition,this technology will also be a boon for criminals who are looking to steal their identity or personal da

88、ta.We could see an increase in cybercrime as wearable devices become more popularand companies will need to take steps to protect their customers from these threats.TREND#19 Digital-only fashionAs more brands begin to produce clothing that can be worn in both the real and virtual worlds,it will beco

89、me increasingly difficult to distinguish the two.This trend will encourage designers to create garments that are specifically designed with digital functionality in mindclothes that can be worn anywhere!While this is certainly exciting,it also raises questions around how brands will go about designi

90、ng these products.Will they collaborate with existing virtual fashion brands or create their own?If so,how will this affect the way we shop online?THE FUTURE OF CLOTHING Copyright|17Were sure to see more designers jumping on the bandwagon and it wont be long before we see a new wave of fashion brand

91、s focusing specifically on digital wearables.We can only imagine what that will look like,but one thing is certain:It will require a different approach from traditional fashion brands.While we wait to see how the fashion industry will adapt,there are a few things we can learn from brands that have a

92、lready launched virtual wearables.First,theyve shown that its possible to create an entirely new type of product categoryone that doesnt exist in the physical world.Second,theyve demonstrated how important it is to create a brand experience around this new type of product and how essential it is to

93、iterate quickly on design and functionality.Finally,theyve shown that creating a virtual wearable is more than just launching an app or website.Its about creating a new type of brand experience that goes beyond traditional fashion retail and pushes the boundaries of what it means to be human in the

94、digital age.TREND#20 Circular FashionThe fashion industry is one of the most wasteful industries in the world.Its estimated that a staggering 70%of clothing ends up in landfills after its first use,which is an incredible waste considering how many people around the globe are without basic necessitie

95、s like clean water,food and shelter.This is why circular fashion has emerged as a new trend 8across all categoriesone thats focused on designing clothes with recycling/reusability/disposal in mind.To achieve circularity,fashion brands will need better systems to keep track of the entire lifecycle of

96、 their products from inception to disposal.This is where the role of robust,end-to-end integrated,modern,cloud-based Product Lifecycle Management solutions such as will become WFX Fashion PLMincreasingly important.Copyright|18Circular fashion isnt just about recycling and reusing materials,its also

97、about designing products in a way that minimizes waste and maximizes durability.As a result,the fashion industry is finally starting to take responsibility for its impact on the environment.Designers are now making it easier for consumers to donate their old products or donate them directly to those

98、 who need them most(think TOMS Shoes).In addition to recycling programs,many brands have implemented zero-waste initiatives as well.These companies are committed to using only renewable energy,water and materials in their manufacturing processeswhich means theyre not just reducing their carbon footp

99、rint but also ensuring that resources are used responsibly.The circular economy is a growing movement thats having a major impact on the fashion industry.Companies like Patagonia,Eileen Fisher and H&M have all adopted circular business models that encourage sustainability and recycling and are seein

100、g some impressive results as a result.Copyright|18SUMMARYThe global fashion industry is experiencing rapid change,and technology will be driving this change further in 2023.It is and will continue to revolutionize every function of the industry,from design and supply chain management to e-commerce a

101、nd customer service.This rapid change has led to increased adoption of new production practices,faster innovation cycles,and more efficient operations.The past decade has seen an explosion of innovative tech products that have created entirely new markets or disrupted traditional business models.The

102、 rise of augmented reality(AR)and virtual reality(VR),for example,has changed how consumers shop for clothing and footwear.Virtual fitting rooms are enabling shoppers to try on clothes before buying them,leading to more sales for e-commerce retailers like Amazon Fashion.And AR technology is helping

103、brands communicate with consumers more effectively through virtual dressing room mirrors that let customers view themselves wearing the newest styles from their favorite designers before committing to purchase anything at all.As we move into 2023,digitalization no longer remains an option,but a nece

104、ssity.Fashion is a constantly evolving industry and one that will continue to be affected by technology.Todays consumers are digital natives who want to shop for clothing in the same way that they enjoy music and video and that means an end to the traditional approach to shopping.Innovators are usin

105、g technology to create experiences that help customers make better informed decisions.Any company that wants to compete in todays market must understand what these changes mean for them and how they can best respond.The fashion industry has been one of the slowest to adopt technology,but that trend

106、seems to be changing.The technology-driven changes in the fashion industry are helping companies to become more efficient and profitable.This white paper is designed to give you an overview of how technology has changed the fashion industry and where it is headed in 2023.If you have any questions after reading this,feel free to reach out!Copyright|+91 98997 61926+91 124 491 World Fashion ExchangeWorld leader indigitally transformingthe Fashion Industry