A world in constant change. And the world is changing rapidly and the fashion industry is no exception. Advances in technology lead to the emergence of new disruptive business models that transform the way things are done in the Fashion industry. In addition, the consumer is increasingly aware and empowered, seeking products and services that do not affect the environment and are socially responsible. This, in turn, also broadens their demands, expectations, complaints and comments through social networks.
New business models with new ways to satisfy consumer needs
Convenience, social responsibility, personalization, and speed are on the minds of consumers today. That is why new business models have appeared that seek to satisfy these needs. Some examples are the second-hand clothing model, the rental of Travis Scott Merch clothing and accessories, the purchase of subscription products, among others.
Second-hand clothing and accessories through digital media
One of the business models that is beginning to have quite a boom in developed countries and that is beginning to be seen more and more in Mexico is second-hand. This system allows customers to sell, buy or exchange fashionable items in good condition, through online applications or social networks.
This modality is attractive for consumers, especially for the new generations, because it allows them to obtain items at a lower price or receive money for things they no longer use. In addition, it promotes responsible and sustainable consumption, which allows fashion items to have a longer life cycle, reducing their environmental impact.
Some players that have entered the market in Mexico with models of this type are EcoChic, Freecycle Network, Vlone Shop and Vintage Hoe. This implies that consumers are having more options to buy good quality clothes at more affordable prices; increasing competition in the Fashion industry.
Fashion items rental
The traditional model of clothing rentals such as costumes, tuxedos or evening dresses has been in the market for some time, however, companies have emerged that are trying to conquer the market for renting clothes for daily use.
Rent the Runway was one of the pioneers in this concept, offering consumers more than 100,000 garment options, which they can obtain through different plans that allow renting from four garments, every eight days, to completely changing their wardrobe, each month.
The consumer is looking for innovation in products and in the shopping experience
In the world of fashion, brands that don’t innovate are left behind. But the key to excelling in the market is not to innovate just for the sake of it: companies must deeply understand customer needs to tailor their product offering. But what are consumers looking for? They are looking for healthier, more sustainable, unique products that have functionalities that facilitate their day-to-day life. They are also looking for fun shopping experiences.
Healthy fashion for the consumer and the environment
The trend of having a healthy lifestyle has grown considerably in recent years. Now the consumer is more aware of the characteristics of the products and services he purchases and takes care that they do not affect his body or the environment.
This trend also applies to the fashion industry. Customers know the materials with which the products in their wardrobe are made and they look for natural fibres, such as cotton, linen, silk, wool and cashmere, which replace synthetic fibres such as polyester and nylon. This is because natural materials have less impact on the environment and do not expose the body to the chemicals used in the polymerization of synthetic components.
Currently, there are several brands that have incorporated this trend in their products, such as Fair Indigo, a brand whose motto is “Style with a conscience”, since it uses mostly natural materials that are kinder to the planet, in addition to being concerned about paying a fair wage to its workers and suppliers.
Technology is present in all objects of everyday life, and clothing and footwear are no exception. Today, brands seek to control factors that affect consumer health and comfort by making use of it.
Some of these products can already be found on the market:
• Mattresses or pyjamas for babies that change colour when the child has a fever.
• Sportswear designed by PolarSeal that can be heated or cooled with the push of a button, as required.
• Caps that use the conduction of the skull bones to play music or make calls, designed by ZEROi.
• Wearable X Vibrate smart leggings, designed to correct yoga postures.
As consumer needs and expectations change, it is imperative that businesses evolve with them.
You must keep an eye on the consumer to know and anticipate their demands. It is also important to optimize the supply chain of companies so that they have the ability to deliver value in a sustainable way, with speed and flexibility. There are companies in the Fashion industry that have already taken this path and that will not stop innovating on issues of sustainability, logistics, operations, among other things, in order to satisfy the consumer. Likewise, players with disruptive business models are entering the market that have the potential to change the rules of the game.