The apparel industry can be a challenging market because while it is always needed, the fashions can change dramatically in a very short period of time. Clothing trends might change faster than the seasons. The TechStyle (previously known as JustFab) Co-CEO Adam Goldenberg explains how data and technology can be used to de-risk the fashion space.
Fashion Risk Management
Inventory is one of the primary challenges of the clothing industry. What should you do with the out-of-fashion garb? You can run numerous sales, but every brand is already doing that and it tends to downgrade your brand’s prestige because customers will simply wait for the sales.
TechStyle Co-CEO Adam Goldenberg thinks that data and technology are the answer.
Unlike fashion brands in the past, the TechStyle brand is starting with an online-first strategy, according to Co-CEO Adam Goldenberg during his CNBC interview. This allows the apparel brand to cut costs and create more user-friendly brands, like Fabletics. The firm is poised for success.
“We are now cash-flow positive,” according to TechStyle Co-CEO Adam Goldenberg, “It’s great to be in control of your own destiny.” The model is called “reverse showroom” by Fabletics, insofar as online memberships are established first. Then each month, different selections are available, ready to be delivered automatically. Customers must tell TechStyle if they want to “skip that month.”
Smarter TechStyle Fashion
The advantages of TechStyle and Fabletics is that they offer 1. Faster customer order processing, 2. Membership customization and 3. Reduced inventory on builtinla.com. Every one wins when the most advanced data, technology and Internet resources are used. It is like the circle of rainfall.
California was used to having high levels of snow on its mountain peaks. When this did not fall, the rivers were lower. Stored up underground water was used up. The punishing drought ensued.
When inventory builds up, the apparel firm cannot purchase the next season’s fashion. The customer is forced to wear out-dated duds. No one wins.
TechStyle Co-CEO Adam Goldenberg explained de-risking so that the Average Joe could understand. Big Data and Technology have reached the fashion industry.