A recent report from MMGNET and The Interline highlights that 94% of fashion experts see technology as vital for the industry’s future. Innovations like generative AI, VR, and 3D modeling are creating exciting opportunities for fashion brands.
As we head further into 2025, fashion marketers should focus on how tech impacts their strategies. What tools are brands prioritizing, and how do they respond to consumer needs? Here are three important insights shaping the fashion landscape.
1. Technology as a Tool for Profit
Fashion faces tough times, with many brands grappling to maintain profits. A survey of nearly 170 fashion professionals shows protecting profitability is their top concern this year.
At the same time, shoppers want better value for their money. According to a report, 62% of consumers list “value for money” as their main factor when shopping. Fashion still ranks high among discretionary spending, but the competition is getting fierce.
With the right technology, brands can cut costs, predict market trends, and understand consumer choices effectively.
This situation calls for careful planning. Brands must attract and keep customers while being mindful of costs to maintain healthy margins. Tech can give brands an edge. It helps streamline operations and align with market needs.
For instance, the UK online brand Oh Polly used AI for personalization, leading to a 270% boost in clicks and an 80% rise in conversions, according to Econsultancy.
According to the same report, 85% of fashion professionals believe technology will help their businesses tackle these challenges effectively.
2. Confidence vs. Competition in Tech Use
Though technology keeps evolving, many fashion marketers feel confident in their tech skills. Almost 70% rate their capabilities as good or even top-level.
This confidence is encouraging, as tech can indeed help brands deliver better value. However, if everyone is implementing similar tech strategies, how can a brand truly stand out?
Even high-tech savvy brands feel they aren’t significantly ahead of their competition. It’s crucial for marketers to not just adopt technology but to tailor its use to fit their unique brand identity. Innovative uses of tech—like AI for deep personalization or refining product-market fit with analytics—can set brands apart.
3. Diverging Views on AI and AR
Fashion brands are excited about using augmented reality (AR), virtual reality (VR), and AI. Many professionals see these technologies as major opportunities for 2025 and think they will become more accessible soon.
For instance, the virtual fitting room market is expected to reach $25.11 billion globally by 2032, growing at 20.3% annually. Various brands, including Burberry and Adidas, have already launched AR tools for online shopping.
However, there’s a gap. While 83% of fashion pros believe AI will benefit their brands this year, consumers care more about product quality and fit—something brands currently prioritize less.
The virtual fitting room market is set to reach $25.11 billion by 2032.
This mismatch could cost brands. Investing in flashy tech without addressing core consumer needs might not improve sales or reduce returns. For marketers, the focus should be on enhancing real product features while integrating tech to enrich the shopping journey.
Final Thoughts
In today’s fashion world, using technology is essential. But it’s vital to use it effectively. Brands must focus on how tech can improve operations, elevate product quality, and create better shopping experiences.
Real success lies in innovative solutions that meet customer expectations and strengthen a brand’s identity.