03/01/2025
When it comes to the fashion business, Marketing Prof. Ying Huang has seen it all. Before she joined the Manning School of Business faculty, Huang worked in the textile and apparel industry in China and consulted for the National Retail Federation. She has witnessed the impact of technology, the rise of fast fashion and the explosive growth of knockoff goods, which cost the global economy an estimated $500 billion annually, according to the Office of the U.S. Trade Representative. Huang, who teaches global marketing and retailing, shared her insights into the state of the fashion industry, from the evolution of supply chains to how 3D technology will make it easier to buy clothes online that actually fit.
How are global supply chain trends affecting the fashion industry?
For geopolitical reasons, like the trade war between China and the U.S., fashion companies don’t want to rely on a single source for their goods, so they pursue a diversification strategy. Even before the pandemic, a lot of companies were looking for potential suppliers in Southeast Asian countries like Vietnam, Cambodia, Malaysia and Indonesia. But the labor cost has been increasing in those countries, especially in China, and the lead time is very long. So we are now seeing more nearshoring, where a company moves operations closer to home. The fast-fashion company Zara, which is based in Spain, now has suppliers in Spain and Portugal, and it can get clothing into stores in 14 days, compared with the typical six-month lead time.
How does technology like AI and blockchain improve the supply chain?
Excess inventory is a big issue in retail. In the past, you just looked at your historical data to decide how many pieces to make. But AI can help you make better forecasts. Blockchain [a decentralized digital ledger for recording transactions among multiple parties] makes the supply chain more accountable and transparent, which helps companies meet their corporate social responsibility and sustainability goals. Not only does a company like Walmart have to be socially responsible, but so do all of its suppliers in the supply chain. With blockchain, a company can monitor the whole production process from end to end.
How are fashion companies addressing sustainability concerns?
A lot of companies are embracing the circular economy, which aims to reduce waste and extend the life of products. Patagonia has its Worn Wear program, where it will buy back an item, wash it or repair it, and then resell it. The North Face has a similar program; even H&M, a fast-fashion company, has one. There are also second-hand platforms like Poshmark and The RealReal that resell used designer pieces. Before, you would just donate it or throw it in the garbage, but now you can resell it, and people can buy it and reuse it. That idea of “recycle, reuse, repurpose” is on the rise in the fashion industry.
What’s being done to prevent counterfeiting?
Counterfeiting is a huge problem for luxury brands like Gucci and Hermès. Some of them are tackling the issue with technology. For example, Louis Vuitton has microchips built into its handbags, which you can scan to check the authenticity. In the secondhand market, Poshmark has a policy that if an item’s price is over $500, it will send it to their authentication center in California before it is sold.
How is technology changing the shopping experience for consumers?
We know that Gen Z follows social media influencers and wants to buy clothes instantly. But measurements are a challenge, especially because there are no standards in the apparel industry. I could be a size 2 for Ann Taylor and a size 8 for another designer like Burberry. So fashion companies are developing 3D technology that can take pictures and give you a size recommendation. Once that is tackled, online buying is going to be even more popular.