The idea of the initiators KPMG and ABURY is to combine refreshing fashion talks in an inspiring environment with business networking in an innovative way, in order to stimulate exciting and necessary discussions on the topic of "the fashion business in Berlin." The vision is to build an interdisciplinary network and, in the long term, to initiate and implement projects together.
The fourth FABTalks took place on October 14, 2015, at the Google Office Berlin. Andrea Kolb, CEO of ABURY, welcomed the guests briefly, after which all those present were tasked with introducing themselves in a convincing manner within the 140-character Twitter limit.
For this session, we were able to secure Sebastian Paas from KPMG Germany, who is the head of their fashion segment, Jeremy Abbett from Google, and founder Peer Hohn from Phizzard as speakers.
The three speakers gave presentations with fundamentally different approaches to fashion and its points of contact with current digitalization.
Following a lively discussion round, there was a highly anticipated tour of the Google Office, which impressed with its modern interior design and plenty of space for relaxation. The meeting rooms at Google, named after Berlin's club scene, also left an impression. Finally, everyone exchanged ideas, continued discussions, and networked over a buffet and drinks.
Summary of the most important contents from the presentations
TALK 1: JEREMY ABBETT
Jeremy Abbett originally comes from the world of design; he founded his own start-up, sold it, and now works for Google as a "Creative Evangelist." Abbett began his presentation with the question of what digitalization means for fashion and vice versa.
His thesis is that the computer and smartphone will be replaced in the future by an omnipresent technology. Today, I can only communicate with my device—or not—it is a binary 0/1 function. In the future, the "cloud" will be everywhere and controlled by voice, no longer manually. The screen that we humans stare at everywhere today will become redundant. We are moving in a direction where fashion can simultaneously be technology. Designers must grow beyond themselves and develop new approaches in fashion in combination with technology. Abbett cites Apple as a good example of a successful fusion of design and technology that does not place the focus on the engineer's work. With its development of its own software and matching hardware, Apple has a closed system that many companies still lack. This is how they appeal to buyers who also place their focus on the design of a product.
Abbett himself has developed textiles with integrated electricity that is unobtrusively incorporated into the clothing. In the future, technology in design will become invisible. For this, designers must in a way become engineers themselves, be open to change, and take risks. Finally, we should always remember that fashion is the most personal thing we carry with us and present to the outside world.
Jeremy Abbett
TALK 2: PEER HOHN
Peer Hohn founded the start-up Phizzard last year with the goal of digitizing stationary fashion retail. This year, Phizzard already won the "Best in eCommerce" Innovation Award at the software trade fair Tools 2015 with one of its first projects.
In his previous job, Hohn dealt with one of the biggest issues in online fashion retail, namely the return rate. The most common reason for a high return rate is an incorrect fit. This is relevant not only for online retail but also for brick-and-mortar retail! Avoiding returns is the number one success driver for the fashion trade.
Peer Hohn
Success lies in combining emotionality and analytical methods
Hohn then asks his audience why digitality in the fashion business is so appealing? The reason is complex and lies, for one thing, in the extremely head-driven, rational online world. How can one approach the problem analytically? The strengths of stationary fashion retail are emotionality. The perfect combination is a strengthened omnichannel retail that combines emotionality and analytical methods. The core of the proposed solution is touchscreens used in the fitting room. The customer is helped quickly and effectively to find a suitable product. This is simple for the end consumer, who simply scans the barcode of a product and then receives information on available sizes and similar items. Based on customer feedback, the success drivers of the business are systematically determined. Online retailers already know this; stationary retailers do not. The keyword is Big Data.
Ultimately, the biggest challenge will not be manufacturing the technology, but incorporating the human side. Sales staff have followed a certain sales culture for decades and are now being given tools that make it possible to serve customers in a completely different way and help them. This requires training and time for the transition and integration into retail.
TALK 3: SEBASTIAN PAAS
Sebastian Paas is a Partner at KPMG in Consulting and has been specializing in management consulting in IT for over 14 years, particularly in the retail and consumer goods sector. He presented the latest results of a current study by KPMG and drew conclusions from this and his work experience regarding the changes the fashion industry has to prepare for. Starting with a quote from Vivienne Westwood, "that nothing has changed the fashion world as much as the internet," he clarified the fundamental importance of digitalization for the fashion sector.
The term "digitalization"
It is unmistakable that the fashion market is changing significantly. But the question is raised as to whether the term "digitalization" is helpful in this context or rather causes confusion.
Current approaches in the field of digitalization are at best "island solutions" as we know them from, for example, RFID, while simultaneously knowing that these have long been outdated.
As in many other industries, fashion is subject to significant change; this affects, among other things, the job profile of the designer or the value chain from sales, marketing, and production to after-sales. The question arises, what is the fashion industry today?
Digitalization in figures:
Results of a new, not-yet-published study state that 66% of the surveyed executives see a significant change.
However, only 27% of respondents already have a strategy for the ongoing digitalization today.
Major barriers that must be overcome are vision and funding. During a visit to the last Fashion Week, Sebastian Paas was particularly surprised by the lack of vision among companies.
Concrete changes from digitalization include that sales can increasingly be taken over by the manufacturers themselves. Furthermore, fashion shows will become virtual, just as there will be no more real models. Digital value-added services and intelligent evaluation of customer data will also gain significant importance. One last foreseeable change is that textiles will become technical.
As possible solutions, Sebastian Paas sees, on the one hand, stronger networking within the fashion industry and, on the other hand, the urgency to build stronger competencies in the field of IT while looking for partners.
Moreover, more forward-thinkers and more courage to think ahead are needed.
Looking positively toward the future, the presentation ends with a quote from the aforementioned Vivienne Westwood:
"No other industry is as flexible, has reinvented itself as often, as the fashion industry."
Discussion
It was once again a great and lively discussion that provided plenty of room for new food for thought. Many thanks for that!
We have determined that the traditional catwalk will be replaced by a digitalized one in the future. In this, films run, into which the viewer will be able to zoom in themselves in the future. Everything is designed to be very individual, one sits comfortably and has more space and experiences a modern and also new solution. For the need for such a solution is great, especially for expensive segments that want to present their new collections individually, luxuriously, and with good acoustics.
Like many large industries, the fashion industry will also be shaken up by much smaller agents. Innovations from much smaller companies will bring change, because the innovations come from outside the industry. These external impulses also come about because new players in the industry can experiment and have nothing to fear at first. They have a different perspective on things and break up rigid structures. That is why the big players in the fashion industry have great difficulties and will continue to have problems in the future if they do not adjust and think in a new and digital way.
None of us should be afraid of the coming changes, because they are there to make our lives easier.
In summary, new external incentives are needed (which already exist). Essential is stronger networking and more platforms that create exchange and transparency. This leads to a greater opening, because to this day the fashion industry is very closed. An upturn will therefore only come for those companies that offer additional digital services.
The evening was concluded with a tour of the impressive Google Office Berlin and drinks in the unconventionally designed foyer.
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