Apparel Companies Now Focusing on Technology
Cited: Apparel News
Retailers and manufacturers are still looking to technology despite their constrained budgets and consolidation on the retail front. This means that technology companies have been holding their own during this recession. Vendors, retailers and brands have made a number of deals in recent weeks; however, executives in the technology industry do not describe this as business as usual but because of the companies being forced to reevaluate all aspects of their business.
Apparel companies are taking a more “holistic approach,” investing in products that provide value and durability, explained Bob McKee, industry strategy director for Minneapolis-based Lawson Software. Lawson this week announced it will outfit Norcross, Ga.–based Alternative Apparel with its business-intelligence and sales-planning software.
Other recent deals include Wet Seal partnering with SAS for a business-intelligence system that helps map out size profiling, Billabong signing on for New Generation Computing’s PLM and sourcing applications, and Urban Outfitters using Merkle’s business analytics system to help its multi-channel marketing efforts.
The companies that are looking for technology are focused, McKee said. “Most of the organizations out there looking are serious about technology, and there is a fair amount looking. There are new requirements for controlling business now. The task of turning inventory into cash is paramount right now.”
Ray Hein, executive vice president of PLM supplier Centric Software, added that there is also a group of “hide out in the bomb shelter and wait ’til it’s over” companies.
“It’s easy to understand this thinking, but we truly believe it’s shortsighted and in fact think that it’s a path to failure. Then, on the other hand, you’ve got the companies who realize they’ve got to invest and improve their efficiencies, control their costs, gain visibility, achieve compliance management—all of the capabilities that we deliver—now, more than ever,” he said.
Hein said Centric has closed on a significant amount of business during the first half of the year in addition to add-on business from existing clients.
“We think these achievements are due to three factors—our ability to deliver enterprise-level impact; our significant new product offerings that have brought truly unique capabilities to the marketplace; and our ability and focus on bringing rapid value to customers, usually within six to 12 months.”
Retailers and manufacturers are seeing value in products such as PLM and business-intelligence applications as well as any product that helps improve speed to market.
“The truth is, manufacturing is not coming back to the U.S,” acknowledged Roxy Starr, chief information officer for Malibu, Calif.–based Shapely Shadow Inc., which develops and markets FastFit360.com, a visual-collaboration tool for fit sessions and other design scenarios. “Technology is the only way to grow and speed up our process communicating in multiple languages,” she said. “Technology is the key to job growth.”
The apparel industry has a history of adapting technology at a slower rate than other industries, but concepts such as “SaaS” (software as a service), which is hosted over the Internet, have lowered the barriers to entry. SaaS applications are significantly less costly, quicker to implement and easier to learn.
Atlanta-based merchandising-software provider Predictix has been able to grow during tough times due in part to its SaaS model.
“It changes the stakes,” said Executive Vice President Rafael Gonzalez Caloni. “Traditionally, you would have these very long bake-offs where the stakes are high, and then you’re talking about another year [of implementation] after you made your decision.”
The system, Predictix, helps manage allocation, pricing, forecasting, markdowns and replenishment retailers and 1/5th to 1/10th the cost of traditional systems. Shapely Shadow’s FastFit is similar and is offered as an SaaS basis that allows clients to pay on a monthly payment plan. Starr also confirmed that the company is growing as a result of this. The system that allows designers and production staffers to collaborate is FastFit. This allows everyone to view sample on a model or body form so they can provide feedback on how to garment fits. It gives the user the ability to zoom in and turn subjects to view all aspects of their.
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My Take: It seems the days of the local tailor or seamstresses are almost over. I am sure that there will always be a need for a tailor or seamstress at some point, probably for wedding dresses and fittings of similar design. A bride would definitely want her wedding dress to fit before she sends out the marriage announcements. However, what makes me unhappy is that the jobs are not going to be in America. This country has gotten too used to outsourcing the jobs that Americans need. In the future, there will be less jobs needed because of birth rate has basically stabilize as far as I know. That means less birth announcements will be needed in the future. Nevertheless, what about the present? What are people going to do for jobs now?
People who want to buy custom-made baby headbands for their infants will just have to find something else that is a little cheaper. Why, because they do not have the job that pays them enough to afford it. They will just have to settle for wholesale baby headbands. I know this example may sound strange, but it is the only one I could think of at the time I was writing this.
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