7 software trends that will radically change Fashion and Retail in 2024

From AI-integrated platforms to digital showrooms, the Fashion and Retail software landscape is evolving faster than we can keep up. Successful players know that they will have a lot to do in the field of software in 2024 and that it is advisable to look ahead. The experts from Microsoft ERP partner TCOG look ahead and discuss the major trends in Fashion and Retail for 2024.

E-commerce continues to grow and omnichannel is a must

In 2023, for the first time, there were more online shops than physical stores in the Benelux and, according to TCOG, the shift to online shopping will continue, as will the need for more advanced e-commerce platforms with improved customer service, marketing and personalization options. TCOG focuses on this by collaborating with partners such as the CX platform Voyado, which uses AI to make optimal use of customer data and create more loyalty. TCOG Sales Manager Eric van der Craats: “ERP systems are increasingly connecting to PIM systems and middleware solutions: the bridge between source systems such as ERP and channels, which provide the landscape with more flexibility. This includes easily managing orders, assigning ranges to certain channels and adding business logic.”

The growth of e-commerce does not mean that the physical store is becoming less important. In fact, consumers expect a seamless experience between the two. Managing Partner Rembrandt Kuijpers: “TCOG helps retailers integrate their physical and digital sales channels. ERP systems can facilitate this, especially in the field of inventory management and customer data in the Cloud. If you do this well, you can offer a very nice, uniform brand experience.”

AI and data driven decision making

The power of artificial intelligence (AI) has been proven in 2023 by breakthrough technologies such as ChatGPT and CoPilot from Microsoft. This offers great opportunities for data-driven decision making, another retail trend. “Within fashion, AI can help predict trends and make personalized recommendations,” says Kuijpers. “The right knowledge partner can support retailers in this by looking for integrated AI options within the ERP system.” ERP can also help retailers collect, analyze and leverage data to better understand customer behavior and optimize inventory levels. Such a data-driven approach is a proven strategy for a loyal customer base, efficient processes and creative ideas, the major assets in the modern retail landscape.

Sustainability is taking serious proportions

New legislation that will come into effect in the coming years will require Fashion and Retail to soon become much more transparent about production processes, for example about the materials used and working conditions in factories. Companies must provide insight into all steps of the production and transport process, from the origin of raw materials to final delivery to the consumer. “For ERP, this means that there must be integrations with blockchain applications in the supply chain,” Van der Craats explains. “TCOG supports the retailer in implementing greener technologies, reducing waste and communicating their efforts to customers. Smart software can also support integrations with sustainability applications such as tex.tracer or the preparation of impact reports, allowing companies to reduce their carbon footprint.”

Better customer experience through innovative technology

By the end of 2022, 89 percent of all Dutch card payments were contactless and 74% of Belgian consumers paid at least once with a contactless card in a physical store. This trend is expected to continue due to developments in Near Field Communication (NFC) technology and the increasing acceptance of contactless payments. “With integrated ERP solutions you can ensure that those payments are secure,” Kuijpers emphasizes.

Security, privacy and data protection will be a major topic in the coming years. “Increasing digitalization brings with it risks in the field of cybercrime. Cyber ​​threats will evolve and in Fashion, where intellectual property and customer data are extra important, cybersecurity will become even more crucial. TCOG can provide retailers with advanced security features within the ERP system, such as advanced authorizations, encryption and secure access control, to protect sensitive data of retailers and customers against cyber attacks.”

Efficient logistics

Fashion and Retail are also not standing still in the field of logistics and fulfillment. The supply chain of tomorrow is resilient, efficient and transparent and that has implications for the software needs of companies. Van der Craats: “I expect more emphasis on speed, tracking, automated warehouse processes and integrations of new technologies such as drones and autonomous vehicles. Fulfillment parties will soon come to the fore even more: they specialize in logistics and can therefore excellently meet the needs of fashion companies. For ERP, this means a focus on real-time data integrations, automated processes, improved inventory management and close collaborations with logistics partners.” TCOG provides Fashion and Retail with advanced software solutions that put those needs into practice, resulting in enormous benefits such as faster delivery times and more flexibility in the supply chain.”

Bringing the customer closer

Personal relationships with customers are crucial in a crowded market. By implementing loyalty programs, communication platforms and feedback systems for customers, TCOG helps to boost engagement. By integrating all kinds of customer data, a 360-degree view of the customer is created. Within the ERP system, this data is then linked to loyalty modules. “In Fashion, this can lead to more personalization in product offers and better results from marketing efforts,” Kuijpers predicts.

Steer ahead with modern technologies

New innovations surrounding the blockchain and ‘smart’ devices, also known as the Internet of Things (IoT), will drastically change the retail sector. TCOG is exploring the possibilities of these emerging technologies to better support retailers. Microsoft’s modern solutions allow retailers to take advantage of advanced features such as self-service kiosks, smart mirrors, Augmented Reality (AR) and Virtual Reality (VR). Another example is the HoloLens smart glasses that create what Microsoft calls a ‘mixed reality’. The sensors and advanced optics blend seamlessly with the environment, making the information added appear to exist in the real world.

“Technological changes will continue to accelerate,” Van der Craats predicts, “especially in the areas of blockchain and AI for traceability and IoT for real-time data collection. This must be properly integrated into retail processes and ERP can help with this through Fashion and Retail modules.” This way, as a company, you can optimize the overall customer experience and leave your mark on the fashion industry, regardless of its ongoing transformation.”

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Source: Fashion United