Welcome to the Digital Revolution: Textile Edition
The digital transformation of the textile industry is rapidly accelerating…how can you stay ahead of the curve?
The transition of the textile industry to a more digital outlook has been a long time coming. But up until recently, it was more of a gradual change. Thanks to covid’s impact on our way of life and how we think about things, consumer behavior and market trends have seen a heightened change which has accelerated the shift towards a digital mindset. Millennials and gen Z in particular exhibit the kind of behavior that drives this kind of change.
The 2017-2020 Mckinsey Global Sentiment study found several notable generational differences in shopping behavior. For example, the younger generations prioritize convenience and a seamless shopping experience. This goes hand in hand with their strong affinity towards online shopping, which baby boomers largely oppose. We also see in this study that Millennials overwhelmingly expect retailers to be “green” and socially responsible, whereas the older generation does not consider this to be a priority.
How do these changes in behavioral patterns affect the clothing supply chain as a whole, and how can you keep one step ahead?
The supply chain is leaving analog behind and reaching towards digital as new business models evolve and put the traditional model under stress. Now more than ever, consumers are focused on quick deliveries and customization - two demands which are not easily satisfied. This dictates the need for a more digital landscape on the supply end of things. Three particular pain points on the traditional model are design/product development, purchasing/production, and distribution.
Typically the design and product development phase takes anywhere from 8-16 weeks. Taking into account the trending consumer inclination towards impatience, you’ll definitely want to invest in digital design software to streamline the development process. Virtual sampling and 3D printing technologies will also be powerful tools to have in your back pocket to speed up this phase of the supply chain.
Purchasing & production is another area feeling pressure as a result of consumer trends. IoT technology which connects physical devices to the internet will enable your business to operate more efficiently at this stage in the supply chain by maximizing productivity, reducing cost, and eliminating waste. By leveraging IoT technologies and data, you will be better able to forecast demand, ultimately resulting in a better experience for the customer.
The final pain point lies in the distribution phase. Customers want their products, and they want them ASAP. You can enlist various technologies to help you achieve a speedy distribution. One such example is blockchain. Blockchain strengthens product traceability while also promoting a faster, more cost-efficient delivery.
We mentioned earlier that not only do consumers want to receive their products sooner, they want them personalized, and they want them to be sustainable. Let’s take a look at how the Santoni MyKnit process embraces digitalization to counter this shift in consumer demand.
MyKnit’s “smart factory” concept exploits seamless technology to make piece by piece production a possibility. This gives them maximum flexibility and allows for personalization at every step of the product design. On top of this, since the MyKnit products are not mass produced, fabric waste is minimized,making for an overall more sustainable experience. Win-win!
Now for an example of how this all comes together. Say a buyer wants to purchase the MyKnit headband and wants to give it their own flair. With the help of Santoni software, they are able to choose everything from the color of the headband down to the font of the logo on it (and if they even want a logo in the first place).
Remove guessing from the equation and learn about what’s in demand straight from the consumers themselves. By using IoT and cloud services, manufacturers are able to connect directly to consumers and streamline the design, purchasing, and production processes.
What does this all mean for you as a textile manufacturer? For starters, embracing a digital mindset and consumer-oriented strategy is key to satiating the current market and fostering your success. Since we already know that efficiency and sustainability are a core focus, going fully digital with your machinery will help you achieve optimal levels of both categories.
It will also be beneficial for you to hone in on data science and cloud-based infrastructure. Perfect these two skills and you’ll stay ahead of the competition. Using cloud-based infrastructure, like Santoni did with MyKnit, lets you personalize products efficiently. Meanwhile, with strong data analysis, you can take information gathered from these customizations and use it to predict future trends, addressing supply chain pain point of product development.
If you find that you are still very much analog, it is definitely time to reinvent your business model to combine physical with virtual. This could look like new technology acquisition or even forming a strategic partnership to better keep abreast of the trends.
Though consumer behavior has changed so swiftly, this doesn’t spell the end for your business. By shifting your strategy accordingly, you will set yourself up for success instead of being left in the dust. While it may seem daunting at first, evolving and embracing the digital landscape is crucial to survival.
As a supplier, the three key areas you should be focusing on are development, production, and distribution. Investing in technologies which really target these areas, will give your business a leg up as you become more cost-effective, sustainable, and streamlined.
Make sure you are always in the know about the latest market trends.