TRADE IN CHANGE
The Times They Are A-Changin' - the fashion industry will face challenges that have probably never been faced before in this concentrated form. Several factors have a significant impact on the fashion business: digitalisation, which will not only change internal company processes, but also and above all - drastically - consumer behaviour, the merging of all sales channels as a result of modern omnichannel strategies, verticalisation, which describes the process of consolidating upstream and downstream production and trade stages in the company, and global supply chain management, which is already a reality today.
A lot will happen! Much is still in flux and not finally decided. However, one thing is clear: in the future, the end consumer will be the focus of action. They decide on the what, when and where, not only when buying, but also when returning goods.
Without a professional software solution that also meets future requirements, no company in the fashion industry can survive today. Which brings us to our solution: Our ERP System IX FUSION.
CHALLENGES THAT MOVE THE FASHION INDUSTRY:
Not too long ago, it was unthinkable to shop from a sofa with a notebook or tablet, surf through virtual shops on a smartphone and have your clothes delivered to your home at the click of a mouse. Online shopping, a child of digitalization, is rapidly gaining in importance. Now the market share in the B2C sector is a good ten percent, it is predicted to double in the next three years. Best prospects for all companies that sell fashion online. The downside: what has already been spent on the Internet is missing in the tills of those retailers who still have real retail spaces.
This trend can certainly not be stopped, consumers today are more demanding than ever and want to shop comfortably at the same time. Comparing prices on the Internet and obtaining information before making any purchases is the order of the day. Usually customers inform themselves online and then buy in the shop - or vice versa. One thing is certain in any case: online and stationary retail will (have to) continue to grow together - only those who master both will survive..
Today we are in a multi-option society. Digitalisation and the networking of different communication channels have enormously increased the options for end consumers. It is no longer a question of either-or, but of as well as. The consumer is changeable and always has a Plan B in mind. They decide where to buy what and at what time. Today he is service-oriented, tomorrow he has to be convinced by performance, but he is price sensitive - he is everything, always and everywhere.
Omnichannel is one of the answers to the unpredictable consumer. It means merging all distribution channels. Stationary spaces, e-shops, mail order companies, TV - the customer is addressed on a broad front. Sales-supporting channels such as social media, web chats, etc. also play a role in the Omni-Channel. The modern consumer wants to be in constant contact with his brands via several channels at the same time.
The big challenge for companies - in addition to communication - with Omnichannel is to distribute the goods optimally among the sales channels. Trousers X must be in store/warehouse Z on day Y. In addition, online shops must be connected to the stationary areas; what has been purchased on the Internet must be able to be returned in the store - these are services that bind the customer to the company and that he expects in the future.
Manufacturers become retailers and retailers become manufacturers - this is a simplified way of summarising the trend towards verticalisation. A company not only produces the goods, it also takes over all stages of distribution and sells the articles itself to the end consumer. Wholesale and retail become one or none.
When properly networked, verticals have many advantages. You can control procurement, production, logistics and sales in one system. Verticalization allows manufacturers to present their brands and products themselves. And last but not least, the margins from several production and sales stages remain in one pocket.
Supply Chain Management
The global supply chain has long been a reality in the fashion industry. The international division of labour offers opportunities but also a whole range of risks that have to be overcome. The demands on logistics are immense and require smooth planning and communication. Every link in the entire chain must be networked as if everything were taking place under one roof.