The fashion industry is facing hard times; once known for its creativity and success, it’s now struggling. Big fashion companies are laying off employees almost every day, and many great and qualified people are desperately struggling to find work. While there are many optimistic posts and comments out there, it’s clear that something isn’t working.
The world around us is changing very fast, and new technologies, ideas, and ways of doing things are constantly being developed. But the fashion industry hasn’t kept up.
For years, we’ve been using the same, outdated business models from the 20th century and have failed to fully embrace the suite of technologies we’ve had available to us.
What Problems Are We Facing?
Many, but here are some of the main issues today:
(1) The E-Commerce Model is Failing
Single-brand e-commerce stores are struggling as customers increasingly prioritize speed and convenience, preferring platforms that offer everything in one place. Many stores fall short due to cumbersome registration processes, the need to manually input credit card details, limited support for payment services like PayPal or Satispay, poorly optimized search engines, and a lack of product variety. These shortcomings drive customers away, highlighting the need for a more seamless and user-friendly shopping experience.
(2) Physical Stores Need a New Approach
Brick-and-mortar stores are under pressure as online shopping continues to rise, drawing customers away. Many physical stores have struggled to evolve, offering a shopping experience that no longer aligns with the expectations of today’s consumers. A fresh, innovative approach is urgently needed to stay relevant.
(3) Influencer Marketing Has Lost its Impact
In the 2010s, influencer marketing thrived, delivering exceptional results. Today, however, audiences have grown more skeptical, easily identifying promotions driven by financial incentives rather than authentic endorsements. Consumers now value genuine connections over paid advertisements. Instead of large-scale influencers, it’s the smaller, niche creators with dedicated followings and a true passion for the products they promote who are shaping the Creator Economy and driving meaningful engagement.
What Can We Do To Tackle These Head-on?
To fix these problems, more than small adjustments will be needed. We will need to rethink how the entire fashion industry works.
(1) Use Technology Together with Craftmanship
Technology shouldn’t replace craftsmanship; it should complement and enhance it. Tools like 3D design and AI empower designers to explore and test ideas faster and more cost-effectively, reducing waste and streamlining production. In today’s landscape, methodologies like Lean Startup are essential – designing behind closed doors on whiteboards, disconnected from customer feedback, is a surefire way to create collections that fail to resonate.
(2) Provide an Experience Together With the Product
Today’s customers seek more than just products – they crave memorable experiences. Physical stores can transform into spaces where people genuinely enjoy spending time, offering interactive displays, personalized services, and events that foster a sense of community. By making shopping engaging and enjoyable, stores can draw more customers while seamlessly connecting the in-store experience with digital, extending the journey far beyond the physical space.
(3) Embrace Circular, Ethical, and Sustainable Business Models
People are increasingly prioritizing environmental and social responsibility, seeking to support ethical and sustainable companies. For the fashion industry, this means adopting eco-friendly materials, ensuring fair labor practices, and creating durable products. These actions not only benefit the planet but also foster customer trust. Embracing digital tools in product development reduces waste, while scalable on-demand manufacturing eliminates overproduction. True sustainability lies in these practices – claiming to be sustainable while generating massive waste undermines credibility and alienates conscious consumers.
(4) Leverage Social Media for Sales
Fashion brands should aim to become influencers in their own right. Simply advertising on social media won’t build authentic connections with customers, and partnering with influencers who lack genuine brand loyalty is often ineffective. Instead, brands should co-create collections with niche influencers, giving them meaningful reasons to promote the products. Focus on storytelling through your social media, showcasing the people behind the brand and encouraging them to share their stories on their profiles. The Creator Economy is here to stay – people buy from people and want relatable, authentic stories that resonate with their own lives.
So What’s Next?
We have the tools and technology to drive meaningful change, but collaboration is essential. Designers, manufacturers, retailers, and customers must come together, share ideas, and work collectively to develop better solutions.
Openness to innovation is key—not every idea will succeed, but each one offers valuable lessons. By testing and refining our concepts, we can discover the most effective ways to move forward.
Imagine a fashion industry that is sustainable, ethical, and innovative, where technology enhances tradition, and shopping becomes a fun and engaging experience. In this future, fashion companies will prioritize their impact on the environment and society, earning customers’ trust through shared values. Technology will empower greater creativity, not limit it.
So, what’s your vision for the future of fashion? Remember, there are no good or bad ideas – only those waiting to be validated.
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