What's Killing Clothing Brands?

The Great Divide: Physical vs. Digital

The world has never been more divided.

No, I’m not referring to the increasing political and socioeconomic divisions plaguing our society, although that may unfortunately be true as well. I’m referring to something equally life-altering. The divide between our physical and digital selves.

There exists two camps.

One yearns for the good ol’ days when conversations took place face to face, and deals were completed with a hearty handshake. The other, possessing instant access to the furthest reaches of the universe through a small rectangular-shaped, battery-powered device in their pocket.

Clothing brands are also split into 2 camps. One spends billions of dollars on TV commercials, print ads, and sprucing up their flagship stores to make them as attractive as possible. The other, embraces social media platforms, influencer marketing and eCommerce.

Who do you think will be on top in the next 5-10 years?

A Shift in Power

Paraphrased and adapted for our discussion, there’s an ancient talmudic phrase, “Who is wise? The one who understands market trends.” Put simply, the tides have changed, and the once tranquil, predictable waters, have now become rapids. Brands that once sailed ocean liners with pride and confidence, are shutting their doors at an alarming rate, and the once young and inexperienced sailor, has become the captain of a luxurious, maneuverable speed boat.

What happened?

It’s all in the numbers.

In just another 3 years, 38% of clothing purchases are expected to be made online. I mean, the explosion of Amazon is proof. The market prefers ease of purchase over almost anything, aside from maybe price, and when you consider 52% of shoppers browse online first, the most logical next step is to secure the order right from the website.

But that’s not all, in the next 10 years, even brick-and-mortar stores won’t be the same. Take a look at what Zara’s doing. Earlier this year, they opened up their first digital concept store paving the way for the future in-store experience. They created a dedicated online area for purchase and collection, and allowed online orders to be picked up that same day if the order was placed before 2p, and next day for orders placed after 2p. Ultimately, there won’t be any inventory in-stores, just digital displays and same-day deliveries.

The Big ‘F-Up!’

So what’s the one thing that ‘F’s’ everything up?

You guessed it. ‘FIT’.

40% of online purchases are returned, and according to a recent survey, 74% of returns are due to poor fit. In a survey conducted by Fashiondex, the drastic increase in returns isn’t purely based off the market shift towards eCommerce. It turns out, brands just aren’t providing the type of quality assurance that they did 20 years ago. In 1999, the average brand would perform 4.75 fit samples per item, resulting in 33% of returns due to poor fit. Today, only 1.98 fit samples per item.

What happened?

Brands like Zara and H&M, with their lighting fast go-to-market strategies, have put major pressure on classic brands to catch up, and they’re cutting all the wrong corners. Considering 80% of companies still design and create samples by hand, no wonder Zara’s is blowing them out of the water with their smooth and automated workflow.

So if the world’s going (almost) completely digital, how can dinosaurs prevent themselves from becoming extinct?

They need to innovate and integrate new, advanced technologies, like...yesterday! Several companies are addressing the ‘fit’ issue in various ways, mine included. Others are addressing design and supply chain issues. My suggestion is to do a bunch of research into the space and get in touch with these companies as soon as possible.

Change is inevitable. We can be inspired by the past, but must adapt to the present to survive. Change doesn’t happen overnight, but it eventually will, and if you’re not ready for it, by the time it hits you, it could be too late. You still have time, make the most of it.