How Data Analytics is Changing the Fashion Industry?

The fashion industry is booming. Things here change very fast. A type of pant that was trendy in one season may not be so in the next season. It is always important to keep track of the trend and customers’ demand when designing clothes. With data analytics, it’s possible to get enough information to make a sound decision about various aspects of the business. We need to know how data analytics is changing the fashion industry. That way, we will be able to include data analytics as part of our business strategy.

The fashion industry is booming. Things here change very fast. A type of pant that was trendy in one season may not be so in the next season. It is always important to keep track of the trend and customers’ demand when designing clothes. With data analytics, it’s possible to get enough information to make a sound decision about various aspects of the business. We need to know how data analytics is changing the fashion industry. That way, we will be able to include data analytics as part of our business strategy.

How data analytics is changing the fashion industry?

Nowadays, data is not collected conventionally. People now share their preferences online in various social media platforms. They need to do market research to find out about the competitors. This big data is so huge that a lot of computing power is necessary to process the data. Different technologies are used to collect, store and analyze the data. Here are some ways data analytics transforming the fashion industry.

Predicting trends

Data is collected from different sources to predict the fashion trend. Different technologies are used to sort and analyze these data to learn about the upcoming fashion trend. It is necessary to track products from various brands and look at their sales report to find out the demand of the customers. Report generated from these data is useful in creating product assortment in retail. If such a report can be updated in real time, then it will be possible to have a clear strategy for stocking up the retail shelves.

Data from other sources

Data should be collected from various sources. Analyzing these data will help to manage the inventory. It is now possible to record and store data of online sales. Using technologies like Beacon, it is also possible to record data of what the customers are purchasing in brick and mortar soft. Knowing the actual buying behavior can help retailers make important decisions regarding their inventory.

Cognitive computing

Cognitive computing is used to simulate the thought process of a human. This way it is possible to know what the customers want. Fashion companies can collect data from various sources using data analytics to analyze the customers’ behavior. Using the data, the retailers will know which item will be in demand and sell well.

Algorithm

Algorithms are designed to offer people with options that match their preferences. This way there will be fewer returns. Using the algorithm, customers will be offered products of the right color, size, etc. The point of sale technologies is very advanced now. Retailers can know from the data available in point of sale system about which product is returned frequently. This information is vital for both the purchase manager and the manufacturer.

Personalization

By collecting customer data, it is possible to customize different customer offers. Today’s customers prefer personalization. So, when they notice that you have studied their buying patterns, they get impressed and purchase more products from you.

IoT devices

Many fitness companies are installing IoT devices in their clothing, trackers and even shoes. Data obtained this way will be very valuable for the retailers. These devices are also helpful for the customers. They will know how many steps they are taking every day; they will be able to monitor their blood glucose levels, etc.

Pricing products

After the fashion show, outfits must be priced before sending them to the retail shops. Data analytics will help the designers price the product the right way. The fashion designers know that affluent customers will only buy garments that are very expensive. So, they should price the garments according to their target market.

Bringing the runway fashion to the retail shelves

The customers do not often see the clothes that are worn in the runway in the retail shelves. Using data analytics, the fashion designers will be able to predict which outfits will successful if sent to retail stores.

Analyzing customer feedback

Using data analytics, it is now possible to analyze the feedback left by the customers. It is possible to include customer feedback in various decision makings.

Identifying new fashion designers

Usually, retailers prefer to buy products from designers that have a proven track record of having more sales. By analyzing fashion reviews it is possible to identify designers who have not yet signed for any big brand, but the consumers like their designs. Buying products from such new designers will be cost effective for the retailers.

 Store arrangement

Customers show certain behavior while shopping. They look more at a particular shelf or prefer buying from a particular aisle. By knowing this information, the retailers can arrange their stores. They can place items in a particular way so that more customers purchase them. Wifi data can be used for tracking how the customer moves around the store.

Decisions made by the help of data analytics will be more informed and better for the fashion industry. Using data analytics, the fashion designers and retailers will understand what the customers want, and they can design or purchase products for their shop accordingly.