Research pick: Measuring up for fashion - "The application of big data in fashion retailing: a narrative review"

An international research team has reviewed how big data might be useful in the realm of fashion retailing. They offer their conclusions in the International Journal of Management Concepts and Philosophy.

Dag Øivind Madsen of the School of Business, University of South-Eastern Norway, Emmanuel Sirimal Silva of the University of the Arts London, and Hossein Hassani of the University of Tehran, Iran, suggest that big data is disrupting the fashion industry in unprecedented ways and has revolutionized traditional business models. “Leading fashion brands and new start-ups are both using big data analytics to improve business operations and maximise profitability,” they explain. In their work, take stock of the research literature in this area and summarise the fashion industry’s current position.

The team points out that there is evidence of many fashion brands actively engaging with social media whilst the most proactive fashion brands such as Chanel, Louis Vuitton, Burberry, Michael Kors, and Pink Boutique, to name but a few, are already making the most of their online presence. They add that they have found evidence indicating that brands such as Zara, H&M, ASOS, Adidas, Hugo Boss, Macy’s, Montblanc, Tory Burch, GAP, and Ralph Lauren are using big data analytics to improve their operations.
They have now identified five main drivers for the use of big data analytics in the fashion industry. The first one is that big data can allow trend prediction. Secondly, it can facilitate waste reduction. Thirdly it can be used to improve the consumer experience and engagement, and marketing. Fourthly, big data can be utilized to improve quality control and reduce the spread of counterfeit garments. Finally, big data can shorten supply chains.

There remain challenges the team has found as the industry seeks to model its markets and consumer behaviour but big data is weaving the way forward.

Madsen, D.Ø., Silva, E.S. and Hassani, H. (2020) ‘The application of big data in fashion retailing: a narrative review‘, Int. J. Management Concepts and Philosophy, Vol. 13, No. 4, pp.247-274.