After that of petroleum, the fashion industry pollutes the most worldwide: the challenge of sustainability therefore becomes mandatory also for luxury businesses, which are driven both by the urgency of environmental issues and by the greater awareness and knowledge of consumers, including above all the younger generations.
To not remain in the category of “skin-deep operations only”, it is critical to share in the responsibilities and transparency at each and every level of the supply chain, with greater awareness also by designers who, with their choices, can make all the difference.
This is what emerged from the studies presented by the students of the Milan’s Politecnico School of management and by the businesses, which also hope for the enactment of legislative measures and the advancement of physical incentives for virtuous behavior.
The road of sustainability is tied by a double thread into that of digital innovation, which often makes it possible. Fashion luxury retail is, however, very unresponsive to the theme (65% of top retailers do not have a strategy of digital innovation): both because technology makes fashion more democratic and accordingly – as a consequence – less luxurious, and also because it is mistakenly believed that digital innovation is incompatible with the heritage of brands. However, just like the 4.0 industrial revolution was successfully applied to productive processes in luxury fashion, also digital innovations like the 3d design, integrated reality, RFID technologies, and mobile apps allow the dialogue with consumers and their eventual feedback to remain open, while also creating a personalized and riveting shopping experience… All to the advantage of retail.
Digital media allows for a more direct communication with the consumer – in fact confirms Andrea Baldo, CEO of Coccinelle, during the round table – brands prefer to use these channels for communication instead of the traditional channel of magazines
The e-commerce channel, as the protagonist of double-digit growth in sales worldwide (+25% a year on average, +30% in italy), and with the expectation of tripling its numbers by 2025, is increasingly critical for the strategies of luxury brands. Nevertheless, despite the obstacles it presents in terms of logistics and returns, it also offers interesting opportunities for recreating the “wow experience” in sales and in the management of inventories by retailers. Among the e-commerce luxury channels, Tod’s and Ermenegildo Zegna are two prime examples, which are perfectly integrated with traditional retail, in a constant dialogue between on and offline.
ITALIAN RETAILERS LATE IN FOLLOWING DIGITAL WAVE
Late, but with the knowledge that they must transform in order to intercept the digitalized consumer, while keeping pace with the growing complexity of processes and the competition of dot. coms: the top Italian retailers must transform themselves in order to remain on the market. This is what was confirmed by the Digital Innovation in Retail Observatory undertaken by Milan’s Politecnico, which presented a not exactly positive picture of Italy’s top retail, just a few days after the workshop on luxury and fashion. In fact, 65% of top retailers declare that they do not have a clear strategy of digital innovation and, although 3 out of 4 retailers would like to close the gap, even if investments in digital technology are on the rise, it is not worth more than 1% of their turnover.
“In an overall context of domestic stagnation, the future of Italian retailers is linked to their ability to identify targets and strategies, by moving in an efficient way, while providing good services to the end customer – cautions Alessandro Perego, Scientific Director of the Digital Innovation in Retail Observatory created by the Milan’s Politecnico – These are more or less the same problems that traditional retailers of all advanced economies are facing, with the difference being that our distribution is extremely fragmented and that our biggest businesses are small, when compared to not only the USA, but also many other European countries”.
Among the more widespread innovations, back-end ones are implemented by 91% of top retailers and include CRM systems (Customer Relationship Management) and electronic invoicing, following the front-end innovations in stores (implemented by 80% of retailers) that are driven by innovative payments. Marketing and sales are the most effected by this development, with a search for innovations meant to make the purchasing experience more personal or meant to astonish: in 2017, 55% of retailers would like to invest in indoor positioning systems, digital signage, smart shop windows, smart mirrors and dressing rooms, augmented realities, and 3D printers… in order to overcome the competition represented by dot. coms. Finally, among the most sought out professional figures is the e-commerce manager, who is considered essential by 60% of retailers. Small and medium-sized Italian retailers are even later in entering the digital era, because of the elevated costs and lack of in-house knowledge and skills: 6 out of 10 are present on the web, but only 15% have an e-commerce site. Moreover, the investment remains between 0.2 and 0.3% of their turnover.
