How Big Data plays a major role in Fashion Industry ?

 

What Impact Does Big Data Have on the Fashion Industry?

 

What exactly is big data?

Big data refers to massively complex structured and unstructured data sets that are rapidly generated and transmitted from a wide range of sources.

These characteristics comprise the three Vs of big data:

v Volume: Volume refers to the enormous amounts of data that can be stored.

v Velocity: The lightning-fast rate at which data streams must be processed and analyzed.

v Variety: Variety refers to the various sources and forms of data that are collected, such as numbers, text, video, images, audio, and text.

Data is constantly generated these days whenever we open an app, search Google, or simply travel from one place to place with our mobile devices. What was the end result? Massive amounts of valuable data that businesses and organizations must manage, store, visualize and analyze.

Traditional data tools are not built to handle this level of complexity and volume, which has resulted in a plethora of specialist big data software and architecture solutions built to handle the load.

How Big Data is beneficial for Fashion Industry?

 

Big data is a hot topic in the business world and for good reason. The advancement of the digital era has enabled organizations of all sizes to gather large amounts of important data. Big data provides businesses with the chance to save money, track operations, develop new products, and much more.

Naturally, businesses all around the world are capitalizing on this trend, including the fashion sector. Apparel designers, producers, and retailers are adopting big data in novel ways.

Previously, the fashion industry depended on intuition and gut feeling when deciding on a creative approach for a given season. However, with fashion accounting for 2% of global GDP and 211 million online buyers in Ireland alone, fashion marketing, and the fashion business are becoming better at capitalizing on big data prospects.

Management is frequently perplexed about which method to employ when it comes to data processing. Only 22% of RFA companies have used Business Intelligence (BI) tools, which is lower than in other industries. According to WhichERP.com, fashion firms who use BI have 54 percent greater operating margins on average. However, in order to obtain any ROI, this system requires continual effort to maintain, categorize, and evaluate the data accessible.

 

Opportunities for aspiring designers:

Merchandise bearing the name of prominent fashion designers brings in a lot of money for big-box stores. However, the disadvantage of these designs is that their costs are expensive enough to burn a hole in your pocket, which will not delight buyers of mid-size stores. Using big data analytics, merchants can examine fresh talent's designs and estimate their market effect. This would make it easier for medium-sized shops to make purchase judgments regarding newcomers in the business, which would boost new designers' sales and enhance sales in mid-size stores.

 

How Big Data will aid in the improvement of conversion rates in the fashion sector?

Fashion retailers frequently struggle with increasing conversion rates. New collections are frequently plagued by the problem of being unable to convert high-ticket consumers. What is the answer to this? Markdown optimization might be the answer you are looking for. This methodology examines consumer behavior and recommends pricing that stimulates demand and assures supply clearing while increasing total earnings. This method may be quite beneficial in increasing the efficacy of clearance sales at the conclusion of each season.

 

Using Big Data to Build Big Brands:

Major businesses are quickly jumping on the fashion industry's big data bandwagon. Amazon is one of the frontrunners, having undertaken an attempt earlier this year to establish how people actually measure up. This huge collection of body kinds is essentially a pool of big data that Amazon collects in order to obtain a better understanding of how bodies develop over time. What this data has the potential to accomplish for internet merchants is unparalleled, especially given that they handle more than 40% of product returns when purchased garments do not fit. For consumers, having that much-desired ‘perfect fit' before purchasing a garment online will lead to more delighted customers.

Big businesses like Zara and Ralph Lauren is racing ahead, aided by big data. Much of Zara's success can be attributed to the company's continual usage of big data, accumulating and analyzing consumer selections and preferences in order to strategically construct their brand based on what people truly desire, or rather, purchase the most. While traditional sales reports were previously the norm in every retail organization, big data now serves as the enterprise's backbone for Zara and other prominent companies. Market experts examine Zara's in-store data from almost 100 global countries to identify exactly what their customers want. The data is analyzed and sent to Zara's in-house designers, who create items "for the people, for the people," to adopt a famous expression.

 

Keywords:

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Tags:

#bigdata #fashion #bigdatatypes #bigdatainfashion #fashionindustry #dataanalytics

Conclusion:

Analyzing what the next fashion breakthrough will be is exactly what you need to make it big in the fashion industry. It is critical for fashion designers to create distinct items in order to remain relevant in the face of increased competition. Traditional monitoring procedures, however, make it difficult to assess patterns. Retailers can leverage live insights to generate the most inventive fashion trends by merging big data with AI and ML. Big data will also assist you in analyzing client behavior in order to recommend a product pricing that will spark demand while securing an increase in overall earnings.

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                                                                                                  Author: Chirag Chugh

                                                                                                  Date: 01-06-2021

 

 References:

 

Silva, E.S., Hassani, H. and Madsen, D.Ø. (2020), "Big Data in fashion: transforming the retail sector", Journal of Business Strategy, Vol. 41 No. 4, pp. 21-27. https://doi.org/10.1108/JBS-04-2019-0062

Quantzig. (2018). Big Data Analytics in the Fashion Industry, Use Cases and Advantages. [online] Available at: https://www.quantzig.com/blog/big-data-fashion-industry [Accessed 30 May 2021].

 

CGS. (2018). How Big Data is Impacting the Fashion Industry. [online] Available at: https://www.cgsinc.com/blog/how-big-data-impacting-fashion-industry.

 

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‌ in (2019). Big Data – A Game Changer in the Fashion Industry. [online] Manipal ProLearn. Available at: https://www.manipalprolearn.com/blog/big-data-%E2%80%93-game-changer-fashion-industry.

 

SAS (2016). What is Big Data and why it matters? [online] Sas.com. Available at: https://www.sas.com/en_gb/insights/big-data/what-is-big-data.html.

 

Andrej Kovacevic (2018). Here’s How Big Data Is Changing The Fashion Industry. [online] SmartData Collective. Available at: https://www.smartdatacollective.com/how-big-data-changing-fashion-industry/.

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