As buyers are moving back to their regular lives of working from the office sending their children to schools, it is obvious that they are looking for solutions and services from fashion brands that offer them unique products while also ensuring that they are safe while shopping. The online marketplace provides convenience and safety to buyers, which probably is the reason why the popularity of eCommerce is rising exponentially. What if this comforting service is coupled with customization solutions which also increases their customer experience. The product configurator software is one such customization tool that will ensure your customers' smooth journey once installed on your fashion brand's website. It empowers them to customize their clothes, shoes, footwear, backpacks, purses, jewelry, hats, and many other products. It also aids them to preview the designed product in 3d before heading for the final payment.
As more people have resumed their routine and pre-corona life, the fashion industry witnessed a rise in the overall consumer price index. The apparel sector's increased up to 4.9 per cent from June 2020 to June 2021. Children's clothing prices increased even higher, 5.5 per cent for the boys' section and 5.6 per cent for the girls' section. The men's clothing prices have only 1.5 per cent compared to women's 5.3 per cent while the demands in both segments have been largely about pants, dresses, outwear. Something seems fishy in the market here; consequently, many experts have dived a little deeper into understanding why the cost for dressing adequately and fashionably has increased. The rising prices in the fashion sector indicate that people crave more unique products, and they are tired of wearing the same athleisure clothes for the past two years. This indicates that they are more willing to try out clothes that best suits their personality and go well with the situation. However, there are other factors fueling the high price in the fashion industry. Let us have a look at them.
Despite the fashion industry moving and embracing digital technology, it continues to face problems related to the supply chain. These issues hampered the business even during the holiday season last year when most of the fashion products were out of stock for various reasons. Many experts, such as Steve Lamar, president and CEO of the American and Footwear Association, point out that the industry faces a double whammy in the current shipping crisis on top management due to oppressive tariffs on apparel and footwear. The Association has been calling out on the US government to remove tariffs and offer more oversight to the maritime industry to reduce the shipping crisis, which is the backbone of the supply chain.
Besides higher shipping costs, retailers' supply chains have been stressed almost to the breaking point. BDO's retail and consumer products national practice leader, Natalie Kotlyar, note the fashion industry has struggled with supply chain issues for quite a while. The supply chain issue isn't a short-term problem, and therefore, fashion retailers will need a reliable and resilient supply chain to ensure they get the right product in the right places to meet demands. The 3D product configurator is a customization solution that is backed by ERP software to help fashion and accessories brands propel in the market. Its comprehensive strategies allow brands and retailers to streamline their various processes, such as designing, manufacturing, marketing, as well as allowing customers to customize the fashion products or accessories.
For a long time, customers have been wearing or accessorizing the products available to them; however, as the fashion market has reopened, they are ready to wait longer for products they actually need or wish to purchase. They no longer want to waste their time purchasing products they think are a waste of time. Therefore, fashion retailers have to end with the short end of the stick as buyers won't pay up to purchase a second-best substitute. Additionaly, they are willing to spend extravagantly on the products they like. This is also one of the other reasons behind the rising prices, as the supply chain won't be available to meet the demands, and there will be fewer markdowns.
Fashion retailers also have to factor in their price increases on consumers already facing escalating costs across the board. In the past year, the CPI for all items tracked by the Bureau of Labor Statistics is up 5.4 per cent. Consequently, many leading fashion brands, such as Ralph Lauren Michael Kos, have adjusted well with the rising prices as the pandemic ends. Offering discounts and personalization are a few methods that will start with a lower price-point in which consumers and brands will benefit alike. Secondary fashion retailers selling gently-used goods also benefit, particularly from luxury-leaning consumers who can't absorb the pinch.
Closing Comments-
In a nutshell, it is imperative for fashion brands to realize that having high demands and a low supply chain may help in increasing prices, but these factors also increase margins which could be a dicey situation for fashion brands. Given the cost of products, the fashion sector may witness increased trade and other costs which can't be undone overnight. The best way to grapple with these challenges is to offer driving seats to customers, which will help fashion companies and their customers alike. The product configurator software by iDesigniBuy helps garment and accessories brands and retailers to let their customers decide the apparel they want to wear and how they want to accessorize it. The tool empowers brands to charge more from buyers because they are emotionally invested in designing their style and feel more welcomed when collaborating with designers. Also, the customization software streamlines the entire supply chain so that fashion houses can focus on other essential aspects of the business.
Vivek Ghai has over 18 years of experience in the software services industry. He is the founder of a software company specializing in web and mobile application development. He has hands-on experience in operations, digital and ecommerce, digital marketing and business development in the technology industry. He advises start-ups and also is a technical co-founder for a few of them.