Management consulting firm McKinsey & Company earlier this month released its state of fashion technology report. Fashion’s been heeding the call of technology for years—and the industry’s future is looking even more digital, with fashion companies expecting to double tech investments by 2030 to stay competitive.
In 2021, fashion companies invested between 1.6 and 1.8 percent of their revenues in technology. By 2030, that figure is expected to rise to between 3.0 and 3.5 percent. Behind the predicted increase is a conviction among many that technology could create a competitive edge—in customer-facing activities, where companies have mostly focused to date, and, more increasingly, in operations. Technologies such as robotics, advanced analytics, and in-store applications may help streamline processes and support sustainability, as well as create an exceptional customer experience.
And as technological innovation accelerates, fashion companies have an opportunity to serve customers better while also creating a more efficient, responsive, and responsible business.
