Among the main challenges facing the sector are rising prices, the resurgence of second-hand fashion and changes in legislation.
Fashion companies looking to thrive this year will need to take a more flexible approach, applying collaboration, transparency and continuous learning. To this end, BCome launched the 2023 Resilient Fashion Business Sustainability Guide, a guide created to turn fashion industry challenges into opportunities for growth.
“Only if we approach the big challenges of fashion brands from a holistic perspective and teach about sustainability, will we be able to survive as an industry. Technology is the way to make this possible, simple and fast, says Alba Garcia, co-founder and director of products at Bcome.
The Future of Fashion in 7 keys
These are the challenges that will define the future of textiles according to Bcome:
Managing a fashion company during a global crisis with production prices increasing by 12%. The situation calls for a comprehensive assessment of all business risks, including human capital, outsourcing, supply chain and, of course, customers.
Greater pressure on supply chain costs with price increases of up to 14% on imports. Investing in tracking technologies is essential to have a complete view of the business supply chain in terms of the cost and impact of controlling it.
lower demand vs. A surge in resale markets with a 127% growth forecast according to thredUp. It is recommended to enter the resale market to win over a more price-sensitive consumer, as well as expand business beyond sales to build customer loyalty.
Lack of value chain visibility for more than 50% of the major fashion brands according to the Fashion Transparency Index 2022. Investment in technology is also necessary to ensure the collection of quality data that allows assessing which areas of the production chains have the greatest impact and make decisions based on accurate knowledge.
The climate crisis is aggravated by the International Energy Agency (IEA) reaching the record number of greenhouse gas emissions for the year 2023. To detect potential environmental risks and prevent their transfer to later stages of the value chain, it is recommended to to evaluate the impact caused by the company through the analysis of the life cycle of its products.
Increased consumer environmental awareness with 50% distrust of possible greenwashing practices, according to the latest Forrester report. Greenwashing demands genuine efforts to create products aligned with consumer values, in addition to clear and transparent communication.
Upcoming European regulations on sustainability, which will include proposed legislation to substantiate environmental claims made by companies. External support and immediate engagement will be essential to facilitate the implementation of the European directives planned for 2023. Obtaining third-party verification will ensure that the information provided is accurate and that problems are avoided.
From BCome consider cooperation, collaboration between different agents in the fashion industry as the key to implement a new paradigm that promotes the growth of the entire textile sector. His report The Resilient Fashion Manifesto developed by BCome is a call to action inviting all fashion professionals to participate in advancing the textile industry. Committed to the change, they are making a free trial of their platform available to all signatory companies to find out firsthand which tools will help them achieve agility by 2023.