In a world where everything is just a click away, the fashion industry is witnessing massive change. Not too long ago, luxury fashion brands were the talk of the season. But then came the fast-fashion business model and it completely transformed the industry.
As the name indicates, fast-fashion is, well, fast. It is the process of democratizing high fashion, creating knock-off designs from designer brands, and quickly supplying them to the market.
Such a model is premised on two key features: quick response manufacturing and dynamic assortment. The former means streamlining retail distribution, while the latter refers to constant production efforts.
However, despite the staggering growth of fast fashion, the industry is now facing a crisis: the closure of retail stores due to the COVID-19 pandemic.
With offline purchase intent decreasing by 70% globally, brands that failed to go digital faced the brunt of the impact. And most companies ended up realizing that fast fashion and digital innovation go hand in hand.
But not all businesses have the capacity, budget, and resources to go online. Fast fashion’s dire need for a speedy, flexible supply chain exacerbates this problem. It is where the eCommerce industry comes in, providing brands with the necessary digital tools to boost sales.
eCommerce transaction means making each step of the value chain quicker and cheaper – which is what fast-fashion is all about.
For example, fashion brands on Alibaba’s TMall platform enjoy the benefit of automated delivery vehicles, which instantly deliver goods to customers’ doorsteps. Hence, eCommerce platforms can truly change the game by providing companies with end-to-end logistics.
In South Asia, the trend is no different. Research shows that fashion is one of the largest markets in the region, comprising US $4,251 million as of 2021. At the same time, 86% of Bloomberg-surveyed customers are buying their outfits on e-commerce platforms.
This means that partnering with an e-commerce platform provides fashion brands with enough time to focus on their weekly production while leaving logistics to a third party.
In 2021, so far, it has been reported that only a single platform of Daraz Online Shopping sold 16+ million items across multiple subcategories and a more notable trend was that most of the purchases were made from the main metropolises of Karachi, Lahore, and Islamabad.
The platform has a promising assortment of 5 million and 200+ brands.
Fashion has not just been an uplifter for established brands but also for local sellers and a clear indication of that has been the presence of 19,000 marketplace sellers on Daraz who have had exemplary performance in the recent past and have empowered them to grow their businesses in the post-COVID world.
Another reason behind the emerging relationship between the two industries in the region is the increasing dependence on big data, and the value it adds to any business.
For instance, 35% of consumers browse for fashion inspiration online. This way, digital platforms help organizations track customer data, and make strategic decisions accordingly.
As a leading eCommerce platform in South Asia, Daraz is spearheading the shift towards fast fashion in the region. By allowing enterprises and startups alike to sell clothing articles on its platform, Daraz ensures transparency, speed, and efficiency for its brands and customers alike.
Such initiative is vital for the fashion industry to thrive – locally and globally.