The fashion industry is navigating a challenging yet exciting phase. Macroeconomic shifts and geopolitical influences are disrupting global supply chains while simultaneously, evolving behaviour of the next generation of shoppers is reshaping the landscape. Being omnipresent to handling an increasingly demanding customer, catering to faster fashion cycles, the impact of social media in the way customers shop and influence one another, besides tackling sustainability issues are just a few of the challenges that retailers face.
In the world of fashion retail, using technology to solve problems is not a one-size-fits-all solution. Simply put, if a company isn’t making money and its sales aren’t increasing, technology alone can’t magically fix that. Different organisations deal with this situation in different ways.
If a company is born in the digital age (call them ‘digital natives’), they might face fewer challenges in this regard. However, if a company transitions into the digital realm later on, simply offering options like refunds to customers or any other non-revenue generating option might not be enough to make a significant impact. And this is where Chief Information Officers (CIOs) play a pivotal role in transforming retail businesses drastically and digitally.
Modern customers, especially the younger generation, have a unique perspective on fashion. They see it differently, understand it differently, consume it differently and share their fashion preferences in new ways with their social networks. In the current fashion landscape, there are trends like casualisation and a growing focus on sustainability, all within a faster fashion cycle change. This poses both challenges and opportunities for fashion retailers and CIOs.
| Traditionally, CIOs operated on a simple premise: they were told what the business wants and they would create and deliver it. However, in the present business landscape, the CIO’s role has transformed. |
Evolving role of CIOs in fashion retail
The rapid change in the consumer market has led to a constant evolution in technology, with new advancements frequently entering the scene. As a result, retailers are increasingly eager to incorporate these technologies into their operations. This shift has significantly expanded the role of CIOs, making their job more expansive, if not challenging.
Traditionally, CIOs operated on a simple premise where they were told what the business wants and they would accordingly create and deliver it. However, in the present business landscape, the CIOs’ role has transformed. Now, they must intimately understand the preferences and behaviour of end-consumers, delving into aspects like shopping habits and interactions with the brand.
The key idea is for CIOs to have a design-oriented mindset rather than just focusing on technology, according to Hariharan Iyer, Group CIO, Raymond who said that CIOs need to understand consumers and figure out how to use various technologies to build a cohesive system. Without this approach, there’s a risk of having a bunch of disconnected technologies that don’t bring in a good return on investment (ROI) or fit into the total cost of ownership (TCO) cycles. “Such disconnected implementations won’t excite customers and could end up being a wasted investment,” mentioned Hariharan.
| CIOs need to understand consumers and figure out how to use various technologies to build a cohesive system. Without this approach, there’s a risk of having a bunch of disconnected technologies that don’t bring in a good ROI or fit into the TCO cycles. Hariharan Iyer Group CIO, Raymond |
Echoing similar sentiments, Satish Panchapakesan, SVP and CIO of Arvind Fashions opined that, in the current landscape, customers have diverse preferences and want different products at different times. Sentiment analysis, understanding how customers feel about products is crucial. What’s needed is not just a technology manager or someone blindly pushing external technologies into the organisation. Instead, organisations need a CIO who is tech-savvy, goes into the industry, understands customer sentiments and builds expertise in a specific area.
“This unique understanding and approach can become the organisation’s intellectual property (IP) that can be monetised, creating a valuable asset,” suggested Satish.
Mapping consumer sentiments becomes even more imperative today because the younger generations, like GenZ and Alpha are deeply fascinated by technology, especially talking to devices like Alexa. For them, if they haven’t chatted with a machine recently, it might mean they haven’t talked to someone in a while. When it comes to fashion, they feel it’s all about getting attention, getting what they want immediately and expressing who they are. To keep up with this mindset, retailers need to tell compelling stories to consumers and that’s where CIO’s role comes into picture.
| It’s crucial to understand that compliance alone doesn’t offer a foolproof shield against privacy breaches. Take, for instance, the anonymity within first-party data, where a user’s seemingly random search could inadvertently lead to leaving digital footprints on potentially fraudulent platforms. Satish Panchapakesan SVP and CIO of Arvind Fashions |
Observing even minute details of consumer behaviour is a necessity!
A report of EY underlines that consumers want to streamline their interactions with fashion retailers and they are using technology to do it. Whether it’s downloading a store’s app for the latest and exclusive coupons or virtually trying on clothes through an e-commerce site, the consumers expect brands to drive deep, meaningful interactions that simplify their experiences.
To accomplish this, retail CIOs are steering efforts in several directions as they are: (1) developing a data-driven strategy; (2) collaborating with technology partners; (3) selecting the appropriate tools, solutions and capabilities to support continuously evolving strategies; and (4) presenting a clear business case to fund next-generation technology investments.
To put things into perspective, here is an example of how technology is helping consumers even beyond selling point. There are apps that check your schedule and tell you exactly what kind of clothes you should pack for your trip. Not just that, they even advise on how many pieces of clothing you need and what colours would suit you during your journey. This is especially handy when travelling to different countries outside the native continent where clothing choices can matter a lot.
And then there are apps that act like personal stylists, helping consumers with fashion choices. The big idea here is that all these apps and technologies are attention grabbing. “If you, as a retailer, can turn this attention into clicks or values, you have added significant value to your business. It’s all about making these tech-savvy propositions work for your customers and, in turn, for your business,” mentioned Satish.
Do all promising technologies work wonders?
As per Vikram Idnani, President and CIO, Landmark Group, there are certain developments that have been hyped by the marketers that need to be relooked at by the new-age CIOs. A notable technological trend in the market is the emergence of virtual try-on technology. While the concept is promising, its implementation has not yielded the desired results for retailers and brands as of yet, especially in the Indian fashion market.
The primary hurdle lies in the technology’s inability to grasp a crucial aspect – fit. Even if it successfully addresses factors like colour and size changes, it falls short when it comes to understanding how the clothing fits on the body. This failure emphasises the need for CIOs to shift their mindset from a focus on costs to a more results-oriented approach, considering the return on investment (ROI). Simultaneously, they must stay attuned to the evolving needs and expectations of customers, remaining at the forefront of customer engagement.
| CIO needs to have a sharp eye on complexities and available technologies. Retailers like Max Fashion India are doing this by using tablets in their stores to enhance the search experience, making it easier for customers to find what they are looking for, whether online or in-store. Vikram Idnani President and CIO, Landmark Group |
Talking about the overall shopping experience, if you have a physical store along with an online presence today and you have got your entire product range available online, it’s essential to make it easy for customers to find what they are looking for. That’s where technology can really help. This can be achieved by having great SEOs to improve search capabilities. Whether a customer is walking through the store or browsing online, ensuring a quick and efficient search is crucial for a retailer.
For example, someone might walk into the store and ask for a black dress, or they might type the same thing while searching online. But the real challenge arises when they want specific prints or textures on that black dress. It’s important to address this complexity in the search process. One way to do this is by making the same search platform available in the physical store and this is why CIO needs to have a sharp eye for this kind of complexities and available technologies.
“Retailers like Max Fashion India are doing this by using tablets in their stores to enhance the search experience, making it easier for customers to find what they are looking for, whether online or in-store,” mentioned Vikram.
Data security is a concern that CIOs are addressing
In addressing data privacy and security for consumer data, CIOs in the retail sector are proactively navigating the evolving landscape. Stressing on the significance of Digital Protection Privacy acts for first-party data, they recognise the impending mandate and acknowledge its directional value.
“However, it’s crucial to understand that compliance alone doesn’t offer a foolproof shield against privacy breaches. Take, for instance, the anonymity within first-party data, where a user’s seemingly random search could inadvertently lead to leaving digital footprints on potentially fraudulent platforms – a challenge not easily regulated by law but rather navigated through continuous learning from mistakes,” commented Satish.
To address these issues, CIOs are advocating for a robust Digital Personal Protection act. This initiative aims to exert substantial influence on companies, aggregators and data sellers, instilling a sense of accountability. The emphasis is on the seriousness with which the liability is addressed, fostering a more stringent approach to data protection. Additionally, CIOs are exploring and implementing advanced technologies and strategies to proactively identify and mitigate potential threats, ensuring a comprehensive and resilient defense against evolving cyber risks.
