Agile supply chain
The development of fast fashion and multi-seasonal fashion collections require faster reactions from the entire supply chain. Only those manufacturers with capacity in the agile supply chain can survive and satisfy market needs. Digitization provides possibility in higher efficiency, lower defect rate and better responsive production time, and manual labor in different processes can be partially or even completely replaced by machinery.
Lower manufacturing cost
Costs in each part involved in the manufacturing processes become more and more transparent, and the buyers tend to cut down manufacturing expenditures and increase input in brand value and omni-channel exposures, especially facing with the millennials. Moving to lower-developed countries or areas and hiring low-cost labors used to be the main solution for lowering cost. However, many critical issues would arise such as turbulent political and social environment, different business culture and languages, and immature infrastructures. Digitalization provides an alternative to control the manufacturing time and cost by reducing total manual labor and increasing real-time communications among each sector.
Digital requirements from customers
More and more customers seek for personalized products through a digital medium, which leads to small-scale production and quick response to unique requirements from each order. Different from the traditional made-to-measure service, customers can place orders anytime, anywhere with different requirements on materials, size, patterns, motifs and colors. This market demand boosts the development of digitalization for order management, automation in production, and new business models for better customer communications.
Nowadays, different resources are scattered globally, and many fashion products are manufactured with a global supply chain. Digitalization makes global collaboration a common phenomenon in the fashion industry. New digital business models using global collaboration is predicted to continuously flourish in future.