Everyone is on a Refashion Journey: As refashion continues to grow in prevalence, brands must work to differentiate themselves from competitors by enhancing CX and optimising existing processes, writes Giorgio DeMarco, lead design strategist at EPAM Systems Inc.

Refashion is by no means a new or novel concept – the period of scepticism is over. In fact, those fashion retailers and manufacturers not currently selling pre-loved are missing out on a lucrative and ever-expanding market segment. Giorgio DeMarco, lead design strategist at EPAM Systems Inc.

Today, organisations recognise the practical and sustainable benefits of refashion to resell items, improve profitability, tell new stories, create jobs and cut costs. Likewise, customers are becoming more familiar with refashion, integrating new habits into their shopping routines.

However, as companies enter this more competitive moment, they must differentiate themselves by enhancing customer experience (CX) and optimising cleaning, repairing and reselling. Of course, every organisation has its own distinctive refashion journey. Some brands are pioneers in refashion with profitable peer-to-peer online marketplaces already in place, while others are still looking for the ideal starting point to get their feet wet.

Regardless of where a company is on its own refashion journey, there are technology solutions and business strategies they can leverage to become more efficient and competitive.

How brands can enhance CX 

While there are no universal steps or stages to the refashion journey since every brand’s path is distinct, refashion does extend the lifespan of products, creating more digital, physical and hybrid interactions between businesses and customers. So, whether a company relies primarily upon its eCommerce platform or combines physical and digital experiences to connect with customers, CX is central to gaining a competitive edge.

Digital marketplaces are becoming the norm, with spending on the biggest ones increasing by 29% in 2020, accounting for 62% of global web sales. As such, organisations need to look to their existing online marketplaces to see how they can optimise various digital touchpoints to improve the customer journey, eliminate pain points and streamline interactions between channels.

A great user experience can also improve CX – brands should re-design their websites and apps to make user interactions easier and more enjoyable. Digital content is another way businesses can connect with customers meaningfully, like DIY repair-training videos or other tutorials.

Enterprises must also work to remove and minimise pain points from physical refashion experiences. For instance, a company’s product collection might be efficient, but if these processes aren’t particularly convenient for the customer, they should be adjusted appropriately. In the same way, consider if it is better to ask the customer to return items to designated locations or if it is easier to send packages with shipping instructions directly to their door.  

Likewise, customers must always feel they are getting tangible value from their efforts. For example, an in-store visit to repair a well-worn item should add credit to the customer’s next purchase. Or by trading in pre-loved items, the consumer gains access to an exclusive loyalty programme.  

As with almost every business process, data is foundational to solid CX. Of course, harmonising data from different business units, such as eCommerce and brick-and-mortar stores, can be complicated. Nevertheless, by leveraging all these sources, brands can learn more about their customers to address their needs and desires more effectively.

Case in point, environmentally conscious buyers span a wide range of demographics, but studies show that most Gen Z and Millennial consumers would purchase sustainably and ethically sourced products over alternatives if they were the same price; many would even pay more.  

Making existing refashion processes more efficient 

For organisations well into their personal refashion journey but looking to improve established processes, they should leverage the latest technology solutions, including computer vision and machine learning (ML).

A considerable amount of collecting and authenticating is involved with refashion, as customers will continuously return used goods, sometimes for a small profit. Nevertheless, determining whether these are fake can be challenging and time-consuming. Plus, companies need to categorise and sort these products based on their status, such as undamaged, lightly used, damaged, etc.  

Computer vision, a subset of ML, uses cameras and software to help brands automatically identify if these returned items are fake or real and determine the degree of wear and tear. By streamlining these crucial authentication and recognition processes, companies can remove the human element from these repetitive tasks and allocate workers elsewhere, further enhancing productivity and reducing errors.  

For the same brands several years into their ongoing refashion journey, they should also look to refine their logistics and operations. From designating specific warehouses for refashion to streaming cleaning and repackaging, companies can enhance these critical behind-the-scenes operations, increasing their bottom line and cutting costs. Likewise, examine restoration processes already in place and determine if any unnecessary steps should get removed or simple tasks that can get automated.

Similarly, businesses should prioritise reusing over recycling. For example, if a pair of shoes gets returned and are well-worn, it is more cost-effective to remanufacture them rather than recycling the material. Also, remanufacturing something that took one US dollar to make is not worthwhile – however, if that product is an antique item no longer sold in stores, it would increase in value after getting fixed.  

Companies can further improve their refashion operations by synchronising their data. Large corporations with multiple subsidiaries and brands, in particular, may find it difficult to effectively track all the different apparel and clothing items coming in and out of their warehouses. Synchronising these databases will result in numerous efficiencies across the enterprise – for example, authentication and identification processes that use computer vision and ML will become more precise.

Moreover, brands must measure and track the success of their various refashion initiatives to ascertain if they are actually profitable. In turn, businesses will know which processes need to be optimised. The metrics brands will need to use won’t be markedly different from a sales perspective with any other line of products. The main difference, however, is the business model by which the company obtains its products.

Businesses that buy back items from customers need to track how much those buybacks cost, including the fees associated with cleaning and restoration. Then, it can compare those expenses to the resale to see if there is an actual profit.  

How to start the refashion journey 

For those brands that recognise the benefits of refashion but aren’t sure how to start their journey, they must first determine if they possess the capabilities to support resale. By putting a business strategy together and taking note of the relevant processes and infrastructure they already have, businesses will understand their limitations and if they need to outsource any work to partners.  

After assessing their capabilities, organisations must agree on the types of products involved in their refashion programmes. Additionally, they’ll have to select a business model, whether that be to leverage peer-to-peer, use third-party services or another method.

Furthermore, it is critical to set clear expectations. It is paramount that leaders communicate what they hope to achieve through refashion to shareholders and other relevant parties. Without the appropriate belief behind these initiatives, the company won’t sound credible or confident when communicating with customers and partners.

Also, organisations must choose the right partners that align with their goals and brand characteristics. It’s helpful to look at their experience and past successes. Thankfully, there are existing partners that can support brands through their refashion transition, without starting from ground zero.  

For example, the United Repair Center, a cross-industry collaboration of apparel brands, consultancy groups, government agencies, NGOs and education institutions, offers clothing repair services to European fashion companies. With the mission of making clothing repair the new norm, United Repair Center enables brands to extend the life cycle of clothing items to achieve their refashion goals.  

Regardless of how companies begin their refashion journey, there are various directions and paths they can take beyond simply making more money. Refashion allows brands to reduce their carbon footprint while creating millions of new jobs – especially in repairing. It is also an opportunity for other satellite markets. For example, there are detergents specifically designed to rejuvenate second-hand clothes.

The most unique opportunity of refashion is perhaps how it empowers companies to tell new stories. While brands aren’t using refashion to reposition themselves dramatically, they employ it to weave new and engaging narratives into their product lines.

Luxury fashion businesses, for example, emphasise their products’ incredible durability from a high-quality perspective and their items’ ability to live multiple lives, benefiting several different owners throughout their lifespan.

Preparing for the Future of Refashion   

There is no one recipe for practicing refashion, nor is there a one-size-fits-all refashion strategy; every brand has different and unique needs. Nevertheless, an experienced retail technology consultant can cooperate with companies to build a tailored and bespoke approach to improve efficiency.

And as the competition continues to intensify in this maturing market, businesses must examine themselves thoroughly, noting any business models, services and experiences they, or their partners, can polish for future success.

By Just Style