CXpose.tech Expert, Hamsa Selvam rounds up observations about workforce trends in the fashion industry due to technology and sees that business leaders can stay ahead of the disruption.

Despite geopolitical tensions and sustainability conscious consumers of multi-generation, the fashion industry is projected to rack 3.3 trillion by 2030. The top trends impacting the Fashion Industry are:

1. Generative AI’s creative crossroads. After generative AI’s (gen AI) breakout year in 2023, more use cases are emerging across the industry. Capturing value will require fashion players to look beyond automation and explore gen AI’s potential to enhance the WORKFORCE.

2. Sustainability rules. The era of fashion industry self-regulation is drawing to a close. Across jurisdictions, new rules will have significant effects on both consumers and fashion players. Brands and manufacturers may consider REVAMPING BUSINESS MODELS to align with the changes ahead.

3. Slow fashion promotes an ethical approach to both the production and consumption. It emphasizes durability, quality, contrasting with the disposable nature of fast fashion. To ensure their clothing choices align with their values, consumers are increasingly seeking certifications that verify the ECO-FRIENDLINESS.

4. Digital experiences. Consumers seek interactive experiences with fashion brands, and augmented reality (AR) offers a range of possibilities to create distinctive encounters and adjust to new shopping habits. AR has the potential to not only provide an exceptional shopping experience but DRIVE SALES GROWTH and achieve their business goals.

But what implications do they have on the workforce?

1. Evolution of Jobs and Roles. Traditional roles may evolve to integrate AI-driven tasks, emphasising creativity and innovation. More cross functional collaboration between tech experts, creative teams, and sustainability experts alined to an evolved business and operating model.

2. Skills-led and Distributed. Workforces are now becoming more hybrid and location agnostic, redistributed across locations to gain access to the best talent pools that compliments their culture and leverage skills in the most commercial and sustainable way.

3. Competitive and Equitable Pay. Ensuring compensation structures are competitive with industry standards and equitable across roles. Implementing technologies that provide visibility into payroll and labor costs relative to revenue. Aligning pay scales with external benchmarks from competitors like Zara, H&M, and Uniqlo, etc.

We have seen global brands responding to these trends by implementing proactive initiatives with their workforce. According to the report by McKinsey, more than 50% of the jobs in retail can be automated.

1. Nike: Restructured their workforce by slashing 2%; Implemented Workday and streamlined their HR analytics team; Leveraging strategic outsourcing/ offshoring solutions to optimize performance and costs.

2. Retail Companies: Best Buy employees take six-to-12-month leaves to rotate and develop new skills; Marks & Spencer has been investing in apprenticeships to improve the digital skills of its workers.

3. Technology Companies (Brands in Fashion industry operating with the agility of a tech start-up): Technology companies are rewarding employees on hot skills acquired; Companies are creating a compensation structure where they move beyond just jobs towards skills based rewards.

Having observed these trends and implications, we foresee the following opportunities and painpoints for brands who want to remain competitive in this fast paced, hyper connected world where consumer needs are constantly evolving.

1. Brands expanding into new markets needs to be driven by a dynamic business strategy that emphasises workforce agility.This ensures responsiveness to global trends and customer needs, positioning the business for continued growth and success.

2. With AI and digital technologies transforming consumer behaviour, jobs in the fashion industry will evolve significantly. Brands can leverage this disruption to assess the current jobs, workforce skills, identifying opportunities to build, borrow, and buy talent strategically. This will ensure competitiveness and innovation in the rapidly changing market.

3. A technology gap limits visibility into workforce and financial planning, especially compared to competitors like Zara, H&M, and Uniqlo etc. Addressing this painpoint will ensure that brands in the fashion industry will stay competitive, agile and sustainable.

What should businesses make of these disruptive challenges?

Leaders need to approach such disruption from the lens of people, process, technology and policies. Changing technology alone will not guarantee a return on investment, but it makes strategic sense to explore the technical limitations of the organisation as a first step and use that as an opportunity to improve the other dimensions.