Clothing industry faces digital transformation and business model change from B2C to C2B
In the new retail era, big data will upgrade the supply chain and become the "password" to drive the entire supply chain.
Not long ago, French luxury group Kering appointed ex-eBay employee Grégory Boutté to the newly created post of Chief Client and Digital Officer. Boutté's responsibilities include leading the group's electronic transformation, e-commerce development, and functional expansion of customer relationship management (CRM) and database management.
Kering's move is the epitome of the changing of global clothing industry from enterprise-centered traditional retail value chain to customer-centered new retail value network. According to a report released by KPMG in November 2017, the clothing industry will be confronted with the industrial upgrading including digitalization, centralization of consumer, and accelerating information transfer. Traditional clothing industry becomes more complicated in the process of new retail reform, and to some extent leads the reform in other industries.
In fact, more and more traditional enterprises are trying to use new force to rebuild customer relationships, and optimize or change current business models. Statistics in the IBM C-Suite Study 2016 showed that 83 percent of CEOs worldwide are using emerging technologies to change to new revenue models. More specifically, in the clothing industry, some analysts pointed out that digital economy will urge the clothing industry to be consumer-centered, changing from the B2C business model to C2B. The big data analysis can help clothing manufacturers and retailers track the change of consumers' needs and preferences in real time so as to delve into the potential market, provide individualized products, and guide the upgrading of products.