Why do Fashion brands and Retailers have to adopt an out of the box PLM solution?

By Celia

Fast fashion, right fashion, on-time fashion, think global, act local, these are not just buzz words, they are real challenges big and not so big fashion brands must meet to satisfy consumers. The fashion landscape has changed because consumer buying habits have undergone a tremendous swing from the 1980s when clients used to shop at departments stores all stocked with the same product offering. These temples of fashion, which enjoyed a comfortable 10% share of the retail market at the time, have since lost their shine (attaining only a 2.6% share in 2011) in favor of smaller, more intimate specialty channels that cater to the specific tastes of the local consumer.

So what happened?

Fashion Collection for SMBPeople are tired of the global, impersonal model and want to be taken for who they are — individuals. The popularity of mobile technology and social networks confirm this individualization.  So, if brands want to reach these new consumers, they must speak their language so to speak, get closer to them, and cater to their local cultures, their likes, and their “individual-ness”. In an article published this month on whichPLM the author mentions another trend in which consumers long for a return to the friendly and available local shopkeeper of yesterday. The challenge is therefore twofold: on one hand brands can no longer exploit one channel with a uniform offering and hope to satisfy a global population that has become ever so ”individual” and on the other, they need to take into account a consumer’s desire for a more personal and intimate shopping experience. SH Lee, chairman of Tesco’s Korean Home, declared the “age of imperialism” over and urged retailers to tailor their offer to local cultures. And bingo! Focusing its efforts on the Korean consumer helped propel his company from 12th to 2nd largest retailer in Korea.

Keeping a profitable balance, however, between producing en masse but with a local twist is not easy. Not only do brands have to manage local differences in their product offerings, they have to turn out new collections fast to satisfy consumers’ desire for renewal. Success depends on whether brands and retailers can stay in touch with consumers’ changing needs and interests. PLM technologies can give brands better visibility when managing consumer feedback as well as assortments, designs, suppliers, manufacturing, and merchandising. As a matter of fact, industry experts predict fashion brands will invest billions in technology. IDC foresees that as product assortment refresh cycles quicken, 25% of mid-sized retailers will initiate new PLM or sourcing projects in 2014. And according to Just-style.com, the PLM market, “could grow up to 40% annually by 2014” boosted by medium-sized apparel firms that are planning to implement this technology.

Big vs. not so big

Fashion Collection for SMBAs speed to market and evolution in consumer tastes accelerate, apparel companies will need the power of PLM technology to  survive. But are all PLMs equal? Can large brands and not so large or niche players use the same PLM? When faced with the  question “to PLM or not to PLM”, how does one choose? When it comes to investing in PLM technology, big and not so big  brands pay attention to different things. 5 years ago a Tech-Clarity study had already pointed out that SMBs have their own wish  list for PLM that includes ease of use, rapid implementation, pre-defined templates, built-in best practices and a solution that  evolves as they grow. Yet today, PLM can still scare some SMBs away because they think it is too complex or too expensive to  implement. They do not have the same resources the big players have. But if the PLM in question is powerful yet packaged as an out-of-the-box pre-configured solution, it levels the playing field by reducing investment and cost of ownership for an SMB whose limited cash flow is not uselessly invested in functionalities that are too broad for its needs. Fashion Collection for SMB is for those not-so-big fashion companies that want to have the power of a PLM solution but scaled to their requirements. This out-of-the-box solution is also easy to learn and implement –a critical factor for user adoption.

The numbers speak for themselves

Brands that have adopted the 3DS solutions have produced some pretty impressive results: 200% increase in technical design productivity for a European outdoor brand that is able to review and approve 5 times more samples in the same amount of time or a medium size ready-to-wear apparel company that experienced threefold growth in product breadth and overall product lines. So if you are an SMB looking to grow your business and strengthen your brand, Fashion Collection for SMB is your door to PLM.

Learn more about Fashion Collection for SMB.

Celia NEWHOUSE is a member of the Consumer Goods Industry team.

 

The Digital Revolution and the Consumer

By Celia

The digital revolution and the consumer, an interview with Marie-Axelle Loustalot Forest, Partner at Kurt Salmon.

Social media, mobility, digital commerce… what is the impact on consumer behavior?

There are 4 steps to the buying process: product search, product selection, transaction and becoming the proud owner of the product.  These 4 steps used to take place almost exclusively in a physical store.  Today, the customer’s route to purchasing a product is more complex and more diverse. Today’s consumer wants to buy a product anytime, anywhere and using the channel he/she prefers: retailers who have developed several channels can take advantage of a higher “share of wallet” that those who have just one channel. With the extended use of smartphones and tablets, consumers have internet in their pocket sort of speak. This means that he / she can surf on competitive website while shopping in a physical store.  Retailers must take into consideration this new competitive environment and the ability for consumers to compare prices in real-time.

How to optimise your multi-channel experience ?

  1. Don’t force a channel over another.  Consumers like the freedom to choose their channels.  This means that all channels must be equal.
  2. Retailers must acquire a unique vision of their customers whatever the channel : setting up a unique customer database, capture all customer interactions, before, during and after a purchase, be able to identify a customer whatever the channel used.
  3. Merge online and offline environments, especially when it comes to promoting product offers: create the best experience possible of a product knowing that the consumer cannot try the product on internet, and leverage the use of digital device in physical stores to enrich product perception. For example the different usages of a product.

Marie-Axelle Loustalot Forest, Partner at Kurt Salmon, will be speking at the 3DEXPERIENCE Customer Forum on Oct 15th, 2013 in Paris

 


 

Révolution digitale et consommateurs, Marie-Axelle Loustalot Forest de Kurt Salmon nous répond.

Media sociaux, mobilité, digital… en quoi cela change le comportement consommateur ?

Un processus d’achat se décompose en 4 étapes : recherche de produits – sélection d’un ou plusieurs produits – transaction – prise de possession du produit. Autrefois, ces 4 étapes se produisaient essentiellement en magasin (exception faite de la vente par correspondance). Aujourd’hui, les parcours clients sont plus complexes et beaucoup plus divers.

Le consommateur veut désormais acheter ce qu’il veut, où il veut et comme il veut : les distributeurs qui proposent plusieurs canaux d’achat capturent une « share of wallet » plus importante que ceux qui ne propose qu’un seul canal d’achat (ou de vente…)

Avec les smartphones et les tablettes, le consommateur emmène tout l’Internet avec lui, partout avec lui. Il amène donc en magasin non seulement le site de l’enseigne, mais également tous les sites concurrents de celui de l’enseigne. Les distributeurs doivent tenir compte de cet environnement concurrentiel élargi, et, notamment, de la capacité du consommateur à comparer rapidement les prix de toutes les enseignes.

Comment optimiser son expérience multi-canal ?

  1. Ne jamais pousser au choix d’un canal plutôt qu’un autre : le client veut pouvoir choisir lui-même dans quel canal il achète. Ceci implique d’avoir des systèmes de rémunération qui ne favorisent pas un canal plutôt qu’un autre.
  2. Se donner les moyens d’avoir une vision unique de son client, quel que soit le canal dans lequel il achète : mettre en place une base clients unique, et capturer toutes les interactions de l’enseigne avec ce client, avant, pendant et après l’achat; reconnaître son client dans tous les canaux
  3. Faire converger les mondes offline et online, notamment pour ce qui concerne la mise en avant de son offre produit : créer la meilleure représentation possible du produit sur son site Internet, pour parer au fait que le client ne peut toucher ou essayer le produit, et utiliser le digital en magasin pour enrichir la perception du produit, notamment en en montrant les usages possibles

Marie Axelle Loustalot-Forest, Associée chez Kurt Salmon  participera au 3DEXPERIENCE Customer Forum à Paris le 15 octobre 2013, en tant que conférencière pour l’industrie Biens de consommation et distribution.

 

The Fashion Industry gets ahead of the curve in Mexico City

By Feranda

The quality of Mexican products is a competitive differential against the hard actual competition at Mexican Fashion market. With this in mind, Dassault Systemes and IQ Innovation, got together for a unique event to discuss the role of technology in the Fashion industry. Cristina Pineda, co-founder of Pineda Covalin, was our special guest.

At the W Hotel in Mexico , more than 40 attendees from fashion brands and retailers joined this breakfast to listen to Cristina’s story, and how Dassault Systemes and IQInnovation help the Fashion industry gain visibility across the globe, having shorter product lifecycle, improving sales with Dassault Systemes’ 3DEXPERIENCE business Platform.

Enrique Marin from IQ Innovation provided an overview of the Mexican Fashion Market.

The quality of Mexican product is an important competitive edge regarding the fierce competition we have to face, Dassault Systèmes is a powerful tool to improve product quality
(La calidad del producto mexicano es un diferencial competitivo tiendo en cuenta el mercado competitivo que enfrentamos, Dassault ofrece una herramienta poderosa para mejorar la calidad de los productos)

Then Aurore Furnaletto, Sales Manager Consumer Goods and Retail from Dassault Systèmes took over. She introduced two 3DEXPERIENCE solutions for Fashion brands and retailers: Fashion Collection for SMB and My Store, or how fashion brands and retailers can leverage technology in all  processes from design to production to store operations. Then Aurore kept audience’s attention with Guess customer case. She presented the different stages Guess went through to adopt Dassault Systèmes’ solutions.

Cristina Pineda, co-founder of Pineda Covalin powerful Mexican luxury brand, with stores in Mexico, Colombia, New York and China, showed how technology complements creativity and the design at market.

To stay competitive in this market, we have to be local, to be able to guarantee our product quality.
(Para sieren competitivos en esto mercado teren que ser locales, para garantizar la calidad de los produtos.)

To close this breakfast Aurore took the audience to the future of fashion with a presentation of FashionLab, Dassault Systèmes technology incubator dedicated to fashion designers. Attendees had also the surprise to discover Paris 3D, with 3D reconstructions of monuments showing the Fashion capital at various times.

Special thanks to Cristina and our guests, we are very proud to have held this fascinating Industry Breakfast alongside our partner IQ Innovation,

Stay tuned for our next event and see you again soon!  :-)

Feranda is a member of Dassault Systemes São Paulo team



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