{"id":8093,"date":"2018-03-13T00:18:15","date_gmt":"2018-03-12T18:18:15","guid":{"rendered":"https:\/\/bbf.digital\/new\/?p=8093"},"modified":"2021-02-08T16:19:28","modified_gmt":"2021-02-08T10:19:28","slug":"experts-discuss-digitization-apparel-industry","status":"publish","type":"post","link":"https:\/\/bbf.digital\/new\/experts-discuss-digitization-apparel-industry","title":{"rendered":"EXPERTS DISCUSS ON DIGITIZATION OF THE APPAREL INDUSTRY"},"content":{"rendered":"

By Shadab Mahbub<\/span><\/p>\n

The RMG industry in Bangladesh is celebrated as the leading (and dominating) source of export earnings for Bangladesh. Our position in the global market as the second largest manufacturer of garments in the world is an accolade that we wear proudly, and the industry has been of immense support to the economic development of the country.<\/span><\/p>\n

However, in the competitive era of globalization, the question is whether or not we can sustain this position and adapt to the changing trends. To address this concern, ThreadSol hosted the second edition of Apparel Tech Up for the Chittagong Apparel Industry in partnership with WebAble Digital<\/a>, Ether Technology<\/a> & The Center for Digital Transformation<\/a> on 4th March 2018 at Radisson Blu \u2013 Bay View, Chittagong. The event was aimed to discuss different technology interventions for the Chittagong RMG Industry with the primary focus being the re-branding of Bangladesh RMG Industry and digitization for Bangladesh RMG Industry to meet the global sourcing requirements.<\/span><\/p>\n

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About Fast Fashion<\/span><\/h2>\n

Fast fashion is a practice within the fashion industry, which is used to identify trends in fashion. The concept is to try out some collection of clothing which is produced at a limited amount and at an affordable price. Later the collections with the best response are reproduced and restocked in the stores. This practice is used in large retailers such as H&M, Zara, Peacocks, Primark, Xcel Brands, Topshop, etc.<\/span><\/p>\n

The concept of Fast Fashion follows 3 simple steps Trend Injection, Read & React and In-Season Chase.<\/span><\/p>\n

Trend injection<\/strong> is a reactive approach to competition’s product range in a season.<\/span><\/p>\n

Read & React<\/strong>: Small SKUs to do dipstick test for market response<\/span><\/p>\n

In-Season Change<\/strong>: Revise manufacturing POs to focus on Fast Selling SKUs<\/span><\/p>\n

Brands in this modern day market stay on the lookout for, super vendors who have smaller lead times, shorter order runs, more styles and produce high fashion, than the traditional vendors who produce basic fashion, have longer lead times, have larger order runs and lesser number of styles.<\/span><\/p>\n

Brands want to shift completely to a faster model to assist the practice of Fast Fashion. In order to keep competing in this highly competitive sector and hold their position, the manufacturers in Bangladesh needs to start embracing digital transformation and transform themselves into Super vendors.<\/span><\/p>\n

In order to achieve this, vendors need to:<\/span><\/p>\n

1. Reduce Lead Times:<\/strong> Vendors need to plan quick. An average order planning time with manual systems is 35-40 mins. Average order planning time with an automated system takes up to 7 mins giving vendors an 80% time reduction in order planning. With this improvement, if a factory produces 10 styles\/day the lead time will be reduced by 5 hours in a day, 125 hours in a month and over 1500 hours in a year. With the amount of saved time, more styles of clothing can be planned in a year with existing manpower. With order quantity shrinking per style and number of styles increasing, the vendors can ensure that their costs don’t suffer.<\/span><\/p>\n

2. Cost Better:<\/strong> 76% Sourcing Directors chose lower material costs over lower labor costs as their preference for sourcing. Yet, fabric for 93% orders is bought at incorrect consumption which results in short shipment and deadstock. These issues can be solved with the help of Artificial Intelligence, Big Data, and Mobility.<\/span><\/p>\n

In order to survive, vendors need to reduce lead time so that they can handle more style changes, cater to in-season change & reduce the cost to bid for more orders. Thus, the industry is ripe to be disrupted by digital transformation.<\/span><\/p>\n

What is Digital Transformation?<\/span><\/h2>\n

Digital transformation is the change associated with the application of digital technology in all aspects of human society. The transformation stage means that digital usages inherently enable new types of innovation and creativity in a particular domain, rather than simply enhancing and supporting traditional methods.<\/span><\/p>\n

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How it relates to the Apparel Industry \u2013 global perspective?<\/strong><\/span><\/p>\n

Brands need to be able to predict the trend and be ready to respond to issues of uncertainty, risk, and reputation at all times. Some factors that are contributing to these issues are:<\/span><\/p>\n

Evolving Regulations<\/strong> \u2013 Factory regulations are always evolving keeping the workers’ welfare in mind and many of these evolving regulations can be achieved with the help of technology. For example: \u2018Workers can be given free health advice with apps like Maya Apa’. These apps work on smartphones as well as featured phones.<\/span><\/p>\n

\u2018Faster Risks’<\/strong> \u2013 Trend Forecasting \u2013 Trend and Fashion in the apparel industry change very fast and it is crucial for companies to be able to predict these changes and act fast. The upward trend in some of the cost components such as energy cost, interest rates, process losses, and leakages.<\/span><\/p>\n

Broader Geographies<\/strong> \u2013 Competition in the RMG sector is rising, many countries who were not in the RMG sector have now started manufacturing and exporting RMG products all over the World. Many of these manufacturing companies have leaned on towards technological innovations to gain competitive edges in this market.<\/span><\/p>\n

More Consumer Channels<\/strong> \u2013 Consumers now use a lot more online channels to make their purchase or at least to make a purchase decision (E-commerce & Social media platforms).<\/span><\/p>\n

Social Media Communications<\/strong> \u2013 Consumers now are more aware and information regarding factories and its compliances are transparent, and this information also affects the purchasing behaviors of the consumers, so it’s crucial for companies to keep a positive social media presence.<\/span><\/p>\n

Change in Buyer’s Persona \u2013 <\/strong>A RMG buyer in the 80s focused more on doing things in the traditional manner, they depended more on human intelligence, they were not updated when it came to technology and they usually wanted to focus on what they did best and wanted to lead the market with it.<\/span><\/p>\n

Whereas a 2nd generation RMG buyer focuses more on: bringing in tech to apparel business, bringing in compliance and worker welfare into the business, building a brand name and maintaining it’s reputation, depend on technology to find the best suppliers, engaging interaction in terms of having 1-1 meetings and being on the same page, collaboration as opposed to competition, expanding to other business verticals & become World Leader<\/span><\/p>\n

How it relates to the Apparel Industry \u2013 Local perspective?<\/strong><\/span><\/p>\n

Change in Values<\/strong> \u2013 the stringent procurement regulations in importing countries \u2013 contributes to the inability of the Bangladesh RMG players to increase prices.<\/span><\/p>\n

The Need for Transparency<\/strong> \u2013 It’s important for all stakeholders of a business to stay updated regarding important and crucial information. This leads to a much smoother workflow allowing businesses to save a considerable amount of money.<\/span><\/p>\n

Adherence to Compliance<\/strong> \u2013 Poor due date compliance often leads to monetary loss as well as reputation loss<\/span><\/p>\n

Problems with the Current Outbound Approach<\/strong><\/span><\/p>\n

Does not address the change in Buyer’s persona<\/strong> \u2013 The methods currently used by the RMG sector does not focus on the buyer’s persona but offers the same products and uses the same communication content for all consumers. It does not align the contents with the consumer’s interests.<\/span><\/p>\n

No Digital Footprint<\/strong> \u2013 Digital footprint helps the company understand its consumers better and make contents according to their interests, which will be more likely to draw interest<\/span><\/p>\n

Difficult to Scale<\/strong> \u2013 It is difficult for buyers to scale the performance of your company in the traditional approaches as a physical presence is necessary, but with technology, scaling can be made much easier for buyers.<\/span><\/p>\n

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Solutions we can achieve with Technological Innovations:<\/strong><\/span><\/p>\n

Knowledge Management<\/strong><\/span><\/h3>\n

One of the biggest challenges to adapting to the fast fashion demands of buyers is that it assumes vendors having an agile & lean process. However, the supply chain used today is legacy and contingent on volume orders to maximize profit.<\/span><\/p>\n

In order to brand Bangladesh as a fast fashion manufacturing destination, we need to develop sufficient intelligence on the market, as opposed to forecasting buyer’s demands. If manufacturers in Bangladesh could accurately predict the fashion trends gaining traction in the buyers’ target market then they could source their material & fabric inventory efficiently, as opposed to ordering for a high price at the last minute.<\/span><\/p>\n

In the era of public data sources, we can easily develop knowledge management solutions to tap into social and retail data and provide information on the trends that manufacturers should prepare themselves for.<\/span><\/p>\n

Data & Analytics<\/strong><\/span><\/h3>\n

The traditional manufacturing setup employees isolated pieces of technology that operates in silos. While it creates marginal efficiency in their processes, it does not create the exponential improvement that is required to keep up with the fast-fashion demands.<\/span><\/p>\n


\nTechnology Integration Solutions<\/a> can offer rich data which will help owners get a better idea of what is happening on the floor, and provide manufacturers and businesses a chance to evaluate the operation and needs of the venture. <\/span><\/p>\n

The plethora of data could offer business insights with the help of machine learning and create various scopes of process innovation. Using Semiconductor Manufacturing quality control analytics<\/a>, can help these companies keep on top of what they are producing. Data drives a business, to know your customer base and to focus on quality can help provide a more substantial input throughout the years.<\/span><\/p>\n

Artificial Intelligence<\/strong><\/span><\/h3>\n

Overseas communication is always a challenge, however, numerous forms of communication can be automated using artificial intelligence. More specifically, there is a branch of AI, called conversational AI which can be used to automate client communication.<\/span><\/p>\n

Another application of AI would rely on a knowledge management infrastructure to consume fashion patterns and make suggestions on the trends that our business should capitalize on.<\/span><\/p>\n

Artificial Intelligence in the RMG industry could also be leveraged for creating transparency by proactively studying the supply chain and red flagging areas of improvement or non-compliance. Businesses can now use predictive analytics applications in supply chain<\/a> logistics to help them identify risks and learn how to avoid them. This will help reduce costs and avoid time delays. <\/p>\n

As an example, you can research more into supply chain procurement, the risk management and control services that can allow supply chain procurement professionals to monitor and evaluate all vendors and suppliers of the supply, in order to decrease the chance of any financial misfortune or supply issues down the chain, ensuring the cycle repeats as normal. You’re able to learn about it here<\/a> into greater depth.<\/span><\/p>\n

While the applications of such technology are numerous, holistically speaking, these are simply tools to help manufacturers adapt to digital transformation and structure more meaningful collaboration with the brands while internally driving innovation in their business.<\/span><\/p>\n

WebAble Digital, Ether Technology & The Center for Digital Transformation is excited to have started the conversation on Digital Transformation for the Apparel Industry and look forward to empowering our partners to secure the future growth of the industry on the global stage.<\/span><\/p>\n\n

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