How fashion organizations can get ahead in an evolving market

Authored by:

• Helene Behrenfeldt | Senior Director, Fashion Industry & Solution Strategy
• Ana Friedlander | Senior Director, Fashion Industry & Solution Strategy

Why agility is the cornerstone of success in fashion

At the heart of every successful fashion organization lies agility—the ability to pivot quickly and make smart decisions in real time. Given the industry’s constant evolution, companies are turning to advanced technologies that empower smarter, faster choices across the entire value chain. These tools don’t just improve processes; they enable responsiveness, flexibility, and innovation at scale. But with so many digital solutions available, the real challenge is choosing technology initiatives that not only enhance agility but also create measurable, meaningful impact.

According to McKinsey, fashion leaders faced a cautious outlook this year. The challenges they anticipated—from evolving sustainability regulations to rising customer returns and inclusive product expectations—all reinforced the need for long-term, agile strategies. In such a dynamic market, responsiveness isn’t optional; it’s essential.

Navigating complex market challenges

While arguably every industry has been impacted in some way by a turbulent geopolitical landscape and ongoing economic uncertainty, fashion continues to face a particularly complex web of challenges. And with the climate crisis remaining a compelling force across the entire globe, sustainability is at the top of the list.

Sustainability requirements such as the European Union (EU) Corporate Sustainability Due Diligence Directive (CSDDD) mean organizations need to reassess their day-to-day processes to ensure compliance. Plus, with every textile product for sale in the EU requiring a Digital Product Passport by 2027, this doesn’t leave that long for organizations to prepare for complete transparency and traceability.

Supply chain transparency and product traceability remain persistent obstacles. Many fashion companies struggle with limited visibility across multi-tier suppliers, making it difficult to verify material origins, uphold labor standards, and assess environmental impact.

Consumer behavior is also shifting rapidly. Circular business models—including repair, rental, resale, and subscription services—are not niche trends but mainstream expectations. Brands that embrace these models by offering repairs or trade-in options build trust and loyalty.

At the same time, the rise of online shopping has increased order returns, complicating demand forecasting and inflating costs across inventory and supply chains. Coupled with talent shortages and reliance on manual workflows, these challenges make agility even more crucial to thrive.

Turn challenges into competitive advantage

In our latest global research report, we found that 77% of fashion organizations agree that success will depend on the use and adoption of new technologies. As far as powering greater agility, it’s clear that how that technology is applied will have a critical impact—and that the right tools can help fashion organizations respond at speed.

• Product lifecycle management (PLM) accelerates innovation and speed-to-market, enabling employees to collaborate in real time with other team members and suppliers to drive product innovation and quality. On top of this, PLM connects design concepts to commercial and sustainability objectives, helping fashion organizations meet changing consumer needs.
  
• Enterprise resource planning (ERP) optimizes and streamlines operations with artificial intelligence (AI)-driven, industry-specific processes to enhance business performance. The solution enables organizations to harness industry-specific capabilities such as product design and customization, predictive demand forecasting, and advanced inventory planning. ERP enables fashion organizations to remain agile, meet evolving market demands, and drive sustainable growth in a competitive landscape.
  
• Configure, price, quote (CPQ) accelerates the sales cycle and enables organizations to better adapt products to market demand. By streamlining the configuration process, organizations can achieve mass personalization at scale, enabling them to move fast. Plus, by generating accurate quotes instantly, teams can eliminate errors from manual catalog updates or outdated pricing sheets.
• A warehouse management system (WMS) helps organizations manage and control all aspects of their warehouse operations, from receiving goods to shipping them out. By harnessing real-time data and automation, a WMS optimizes inventory and streamlines workflows. Meanwhile, machine learning (ML) and generative AI (GenAI)-powered capabilities enhance warehouse planning, configuration, and labor management. This leads to reduced costs, improved operational efficiency, and enhanced customer satisfaction.
• A supply chain business network provides organizations with a global network of manufacturers, suppliers, logistics providers, and banks that help seamlessly orchestrate and optimize the end-to-end supply chain. The network helps organizations leverage cutting-edge AI and automation tools to uncover data-driven insights, enhance decision-making, and proactively manage disruptions. It also supports better optimization of the order-to-delivery process to reduce waste and improve sustainability.
  
• Supply chain planning (SCP) provides predictive demand forecasting and market responsiveness using real-time data to anticipate shifts in consumer demand. This helps mitigate risks, optimize inventory, and ultimately balance cost with speed. With real-time visibility into the entire supply chain, organizations can manage multi-location inventories efficiently and respond to market fluctuations.

Making possible happen

In today’s fast-moving fashion industry, responsiveness is no longer optional—it’s a critical differentiator. The right technology investment doesn’t just enhance agility; it empowers organizations to capture market share and stay ahead of competitors.

To illustrate this, we’ve developed four Vectors to Value—a strategic blueprint showing how leading industrial and fashion organizations worldwide leverage technology to unlock new value streams and drive sustainable growth.

Discover how your organization can secure its position as an industry leader. Download our report today to explore the path to smarter, faster, and more profitable operations.