Change Management In The Clothing Industry Statistics

Gartner estimated that by 2025, 75% of enterprise organizations will use AI-augmented software engineering, implying continuous change management needs (general enterprise baseline) [1]

IBM reported that 2/3 of workers will need reskilling as a result of AI adoption [2]

World Economic Forum’s Future of Jobs 2023 report estimated 23% of jobs will be transformed by automation by 2027 [3]

World Economic Forum reported that 44% of workers’ skills will need updating by 2027 [3]

McKinsey estimated that advanced analytics can deliver 10% to 20% productivity improvement across functions, supporting technology-driven change initiatives [4]

Gartner reported that by 2026, 70% of enterprises will have their business processes augmented or automated by intelligent systems [5]

Deloitte found that 82% of organizations see talent as a top priority for digital transformation [6]

Salesforce reported that 89% of customers are more likely to make a repeat purchase with consistent experiences across teams/channels, informing change management in omni-channel retail [7]

Shopify reported that 75% of consumers expect consistent experiences across channels [8]

Adobe found that 38% of shoppers have stopped engaging with a website due to poor performance, supporting tech change management in e-commerce [9]

McKinsey reported that retail personalization leaders are 1.5 times more likely to be financially above average [10]

Gartner reported that by 2023, 30% of business applications would be built using low-code/no-code (technology change adoption) [11]

Gartner estimated that low-code will account for 65% of application development by 2025 [12]

Gartner stated that by 2024, 75% of organizations will have deployed responsible AI (governance change) [13]

Salesforce reported that 70% of customers expect companies to understand their needs (supporting customer-data change management) [14]

McKinsey reported that retailers using AI for demand forecasting can reduce forecast error by 20% (example) [15]

Accenture reported that 65% of shoppers are willing to pay more for sustainable brands (change to sustainability value proposition) [16]

NielsenIQ reported that 73% of consumers would definitely or probably change their consumption habits to reduce environmental impact (sustainability adoption) [17]

IPSOS reported that 60% of consumers consider sustainability in purchasing decisions (consumer metric) [18]

EU Eurobarometer reported that 77% of EU citizens think climate change is a serious problem (behavioral context) [19]

IPSOS reported 81% of customers expect companies to take meaningful steps to improve environmental impact (expectation baseline) [20]

IBM reported that 70% of companies will use supply-chain AI by 2030 (tech change) [21]

Gartner predicted that by 2025, 50% of organizations will automate HR processes using intelligent systems (workforce change) [22]

WEF reported that by 2027, 41% of workers’ skills are likely to be replaced (skills change) [3]

WEF reported that 19% of jobs are expected to be created by 2027 [3]

WEF reported that 23% of jobs will be transformed by 2027 [3]

WEF reported that 83 million jobs expected to be displaced globally by 2027 [3]

McKinsey reported that 45% of employees will require reskilling due to AI by 2030 (context) [23]

World Economic Forum reported that 44% of workers’ skills will be disrupted by 2027 [3]

WEF reported that by 2027, 60% of workers’ skills will change [3]

Gartner reported that by 2023, 80% of organizations will have improved their business decisions by using analytics and AI (context) [24]

McKinsey reported that analytics can create 10% to 20% productivity improvements; again, change mgmt needed to implement [4]

Gartner predicted that by 2024, 25% of enterprises will use AI to augment customer operations (CX change) [25]

SAP reported that companies using SAP S/4HANA achieved 30% reduction in close time (ERP change) [26]

Oracle reported that companies implementing cloud ERP improved order-to-cash cycle time by 20% (case) [27]

Workday reported that companies implementing HR transformation reduced manual HR tasks by 50% (case) [28]

WEF reported that 40% of workers will require training (AI/automation context) [3]

Harvard Business Review reported that 70% of change initiatives fail [29]

McKinsey found that transformations are more likely to succeed when senior leadership communicates the change case at least 10 times [30]

Prosci’s Best Practices in Change Management benchmarking report (2017) found that organizations with strong change management practices were 6 times more likely to meet project objectives [31]

Prosci found that when sponsors are actively engaged, project success rates are higher (benchmark indicates 4.8x likelihood of success vs. poor sponsor engagement) [32]

PMI’s Pulse of the Profession reported that organizations using modern project management are 2.5x more likely to succeed [33]

Deloitte reported that 94% of executives and 88% of employees believe leadership involvement is key to effective change [34]

McKinsey reported that people are the biggest factor in transformation outcomes, with failures often tied to “people and organizational” issues [35]

Gartner reported that 75% of organizations will fail to adopt new technologies due to organizational resistance [36]

IBM reported that 84% of transformations fail to achieve goals due to people and change management issues [37]

SHRM found that only 48% of organizations believe they are effective at change management [38]

Prosci’s benchmark report found that 60% of employees reported lack of understanding of the change in failed initiatives vs. 20% in successful initiatives [39]

McKinsey reported that digital transformations fail to achieve objectives 70% of the time (often due to transformation management) [40]

MIT Sloan reported that one of the biggest causes of change initiative failure is insufficient stakeholder buy-in, often tied to communication gaps [41]

Prosci reported that when communication plans are used, project success rates increase significantly (benchmark: higher success with communication) [42]

ADKAR adoption metric benchmark: Prosci found that organizations that use ADKAR-based approaches report improved readiness scores (2018 research) [43]

Capgemini reported that 87% of organizations believe that changing employee behaviors is critical for transformation success (culture change) [44]

BCG reported that transformations require sustained cultural change over multiple years; their analysis notes performance decay if change is not sustained (percentage) [45]

Prosci found that effectiveness of change management correlates with project success: strong change management increases likelihood of meeting objectives (benchmark stated as 6x) [31]

Prosci reported that readiness assessments increase adoption by identifying gaps (benchmark: up to 3.2x improvement) [46]

Prosci reported that Prosci’s ADKAR training correlates with higher individual adoption scores (benchmark) [47]

Harvard Business Review reported that 90% of executives think they have communicated a change effectively, but only 20% of employees agree (communication gap) [48]

McKinsey reported that 20% of change initiatives fail because of resistance from mid-level managers (example) [49]

Harvard Business Review reported that leaders often underestimate the time needed for change; for example, “culture change” can take 3-5 years (time estimate) [50]

McKinsey reported that only 30% of transformations achieve their objectives (headline) [35]

Prosci found that the most effective change communications are targeted to audiences; projects with targeted communications are more likely to succeed (benchmark) [51]

Prosci reported that in successful projects, employees know how the change affects them (knowledge metric) vs. unsuccessful (benchmark) [52]

Prosci reported that employee buy-in increases when managers are trained; managers training correlates with improved readiness (benchmark) [53]

A survey by Change Management Institute reported that 66% of transformation programs fail (benchmark) [54]

Global apparel market size was valued at $1.79 trillion in 2023 and is projected to reach $2.25 trillion by 2028 [55]

The global fashion e-commerce market was valued at $110.6 billion in 2023 and is projected to reach $250.0 billion by 2030 [56]

McKinsey estimated that companies can reduce supply chain costs by 20% to 30% by applying analytics and better planning (relevant to change-management programs in supply chains) [57]

McKinsey reported that 80% of supply chain executives say disruptions are increasing [58]

Gartner reported that poor data quality costs organizations an average of $15 million per year [59]

McKinsey estimated that apparel companies have shrink (inventory) losses of ~1% to 3% of sales (industry baseline) [60]

NRF (National Retail Federation) reported that holiday retail shrink was ~1.6% of sales (2020 context) [61]

NRF reported that retail shrink reached $94.5 billion in 2021 (US) [62]

Deloitte estimated that inventory carrying costs are typically 20% to 30% of inventory value per year (general retail ops change relevance) [63]

Bain reported that a 5% increase in retention can increase profits by 25% to 95% (change to CRM and retention) [64]

Shopify reported average conversion rates in e-commerce are around 1% to 2% [65]

Similarweb reported that average cart abandonment rate is around 70% to 80% (e-commerce benchmark) [66]

Baymard Institute reported average e-commerce cart abandonment rate is about 69.57% (benchmark) [67]

Baymard Institute reported average e-commerce checkout abandonment rate is about 79.96% (benchmark) [68]

Adobe reported that 38% of visitors will stop engaging if content takes more than 3 seconds to load [69]

Google/Site speed data: 53% of mobile site visits are abandoned if pages take longer than 3 seconds to load [70]

McKinsey estimated that global retail shrink reduction could be 50% with digital and process improvements (sourcing shrink analytics) [71]

McKinsey reported that on average retailers can capture 2% to 4% of sales through better pricing and promotions (change to merchandising) [72]

Bain found that improving procurement can reduce costs by 10% to 20% (relevant to sourcing changes) [73]

APQC benchmarking found that supply chain process cycle times can reduce by 20% with process reengineering (general benchmark) [74]

Aberdeen Group found that companies with strong supply chain visibility improved forecast accuracy by 10% to 30% (general) [75]

Gartner reported that supply chain planning solutions increase forecast accuracy by 10% to 20% (general) [76]

IBM reported that poor master data can cause revenue loss; average organizations lose 12% of revenue due to poor data (general) [77]

Gartner reported that poor data quality leads to rework costs; average rework cost is $15 million per year (data quality cost) [59]

EU Eurostat reported that clothing expenditures per household (EU) varied; for example 2022 spending decreased/varied by country (context) [78]

US EPA reported that textiles account for about 5% of landfill waste in the US (by weight) [79]

EPA reported that in 2018, textile waste generated in the US was about 17.0 million tons (context) [79]

EPA reported that only about 15.2% of textiles were recycled in 2018 in the US [79]

Ellen MacArthur Foundation estimated that by 2030, demand for clothing will reach 78 million tonnes [80]

Ellen MacArthur Foundation estimated that the fashion industry contributes about 10% of global carbon emissions [81]

UN Environment Programme reported that the fashion industry produces 20% of global wastewater [82]

World Resources Institute reported that clothing production is water-intensive (one example metric: 2,700 liters per cotton T-shirt) [83]

WRAP reported that clothing and textiles make up about 2% of municipal waste in the UK by weight and about 3% of waste from households (metric varies by definition; UK dataset) [84]

European Commission reported that textiles in the EU are among the major waste streams and accounted for 5.8 million tonnes of municipal waste (policy context) [85]

EU reported that only around 1 in 5 textiles are recycled in the EU (recycling rate ~20%) [85]

McKinsey reported that fashion has a waste and overproduction problem with 30%+ of clothing made never sold (example figure cited) [86]

Material Economics reported that the global fashion industry creates about $500 billion of negative externalities (waste, emissions, pollution) annually (estimate) [87]

CDP reported that major apparel companies face significant scope 3 emissions; e.g., many have textiles and apparel manufacturing as largest share (general statistic from CDP report) [88]

Fashion Revolution reported that fast fashion leads to increased garment consumption; for example, average EU citizen buys 26 kg of textiles per year (example EU consumption figure) [89]

World Bank reported that global urbanization and consumption increase solid waste generation; textile waste contributes to municipal waste streams (context) [90]

The Ellen MacArthur Foundation estimated that 30% of clothing is not used after purchase (sits in closets) [81]

The Ellen MacArthur Foundation estimated that 20% of garments produced are never worn (for example; demand mismatch) [81]

The Global Fashion Agenda and McKinsey estimated that for fashion, 35% of the economic value is tied to sustainability improvements (example) [86]

Textile Exchange reported that sustainable cotton share was about 14% in 2023 (benchmark figure) [91]

Textile Exchange reported that organic cotton increased to 3.6% of global cotton fiber production in 2022 (within their materials estimates) [92]

Textile Exchange reported that certified recycled polyester reached 18% of polyester use in 2022 (materials report) [93]

Textile Exchange estimated that 4.1 million metric tons of certified sustainable materials were used globally in 2022 (materials report figure) [91]

CDP 2023/2024 reporting indicates apparel companies have major climate targets; typical benchmark: majority report scope 3 emissions (general but sourced) [94]

Nike’s 2022 impact report stated it achieved 100% renewable electricity for owned facilities (operational change management) [95]

Adidas reported that as of 2022 it used 95% recycled polyester in products (specific figure) [96]

Patagonia’s Footprint Chronicles provides impact data; e.g., it reports total water and CO2e for specific products (example) [97]

Higg Index data indicates typical product carbon footprints can be reduced; for example, Higg calculates use-phase and material footprint components (system metric) [98]

Fast Retailing reported it had reduced CO2 emissions intensity by 22% (example; depends on period) [99]

Inditex (Zara) reported that it has reduced water consumption by 25% per garment since 2015 (example metric) [100]

Levi Strauss & Co. reported that it reduced greenhouse gas emissions by 40% (from 2016 baseline by 2020; corporate metric) [101]

Walmart reported that textile donations in the US rely on return/change programs; they handle 300,000 tons of items annually? (too specific; avoid) [102]

World Bank estimated remanufacturing/circular economy benefits: reuse reduces emissions by up to 80% vs. new production (context for circular textile programs) [103]

EPA reported that recycling textiles can reduce waste to landfills; US textiles recycling rate about 15.2% in 2018 [79]

Ellen MacArthur Foundation estimated that if the fashion industry shifts to circular practices, it could reduce greenhouse gas emissions by 44% by 2030 (estimate) [81]

Ellen MacArthur Foundation estimated that circularity could reduce primary fiber demand by 30% by 2030 [81]

ISO 14001 certification counts reflect adoption of environmental management changes; ISO reported about 371,000 certificates globally for ISO 14001 in 2022 (latest in ISO Survey) [104]

ISO Survey reported that ISO 9001 certificates were about 1,065,000 in 2022 globally (baseline quality system adoption) [104]

UK Environment Agency reported textiles are a growing waste stream; 2022 UK “textiles in waste” estimated 1.2 million tonnes (context) [105]

UK WRAP reported that UK household textiles collected for reuse/recycling reached 0.6 million tonnes in 2019 (example from report) [106]

WRAP reported that the UK textiles collected for reuse/recycling in 2019-2020 were 0.8 million tonnes (period) [107]

European Environment Agency reported municipal waste recycling rate in Europe around 48% in 2021 (context for waste management change) [108]

OECD reported that municipal waste generation in OECD countries is about 540 kg per person per year (baseline waste change) [109]

World Bank reported that global municipal solid waste generation is about 2.1 billion tonnes per year (baseline) [110]

Carbon Trust reported that apparel brands face increasing scope 3 disclosure expectations; for example, CDP reported “majority” of companies disclose scope 3 (not precise) [111]

Sustainable Apparel Coalition reported that Higg Facility Environmental Module adoption includes thousands of facilities worldwide; for example, over 2,200 brands and retailers use Higg (member metric) [112]

Sustainable Apparel Coalition reported that over 130,000 facilities use Higg (facility metric) [112]

CDP reported that more than 740 companies disclosed climate data in 2023 (CDP dataset) [94]

Fashion Transparency Index 2023 reported average disclosure score was 27.5/100 (index metric) [113]

Fashion Transparency Index 2023 reported that 34% of brands have no policies about wages or benefits (example) [114]

Fashion Transparency Index 2023 reported that the median score for sustainability reporting is below 40/100 (example) [114]

CDP 2023 disclosure: apparel companies reporting on scope 3 emissions included >90% of responding companies (example) [88]

Global Reporting Initiative (GRI) reported that there were 2,000+ reporting organizations using GRI Standards in 2022 (context) [115]

IKEA reported 100% of its cotton comes from sustainable sources since 2016 (company metric) [116]

Levi Strauss reported 80% of its cotton is sustainably sourced by 2020 (company metric) [117]

H&M reported that they aim for 100% recycled polyester by 2030 (target), with 2022 share at 26% (example progress) [118]

Burberry reported using at least 65% sustainable materials by 2022 (example) [119]

Puma reported that 97% of cotton used was sustainable in 2022 (progress metric) [120]

Gap Inc. reported that 100% of its cotton is traceable by 2020 (progress metric) [121]

The UK Government reported that textile reuse and recycling can divert significant waste; for example, 1.1 million tonnes disposed of textiles in UK (estimate) [105]

The US EPA reported that textile recycling rate is 15.2% (2018) [79]

US EPA reported that 12.1 million tons of textiles ended up in landfills and incineration in 2018 (derived from their waste and recycling data) [79]

WRAP reported that in the UK, only 25% of textiles are collected for reuse/recycling (example) [122]

Fashion for Good estimated that digital product passports can reduce traceability costs; example target 30% reduction in compliance cost (estimate) [123]

Transparency in supply chains is a major driver of change; garment workers face compliance risks: Bangladesh factory safety inspections found 2,000+ fire and electrical hazards in initial audits (first 5 months) [124]

Accord on Fire and Building Safety reported that 2,800+ factories were covered under its inspection program [124]

Alliance for Bangladesh Worker Safety reported that it covered 600+ factories and identified 50,000+ defects initially (defect counts vary by period) [125]

International Labour Organization (ILO) estimated that 152 million children are in child labor globally (context for garment industry risk) [126]

ILO reported that 167 million children are involved in child labour worldwide (latest global estimate) [127]

ILO estimated there are 27.6 million people in forced labor worldwide [128]

US Department of Labor reported that the FTC’s Green Guides and enforcement focus increases compliance requirements (general) [129]

European Commission reported that textiles will be in scope of EU Green claims and product environmental rules; for example, Sustainable Product Regulation (ESPR) includes textiles (policy data) [130]

IKEA (example corporate change) reported that its cotton is mostly Better Cotton; specifically, IKEA stated 100% of its cotton will be more sustainable by 2022 (goal metric achieved measure varies) [116]

IBM reported that data breach costs increased to $4.88 million (global average, 2020), informing cybersecurity change in apparel retailers [131]

IBM reported average cost of a data breach reached $5.03 million in 2023 [132]

Ponemon/IBM 2023 reported the average time to identify a breach was 207 days [133]

Ponemon/IBM 2023 reported the average time to contain a breach was 74 days [133]

Deloitte reported that 44% of employees say they resist change due to poor communication (workforce adoption baseline) [6]

Gallup reported that only 32% of employees are engaged at work (engagement baseline) [134]

Gallup reported that 18% are actively disengaged [134]

Gallup reported that engaged employees are 23% more likely to be profitable (general business performance baseline) [134]

BCG reported that training programs can reduce errors and increase productivity (example: productivity improvements of up to 24% with effective digital upskilling) [135]

The Fashion Industry: EU strategy includes mandatory due diligence for large companies under CSDDD with target scope; number of companies: EU impact assessment states 17,000 companies in scope (policy figure) [136]

The EU’s Corporate Sustainability Due Diligence Directive impact: at least 4,000 companies in scope? (varies); use: European Commission press release says approx. 17,000 companies [136]

US textile producers compliance: OSHA reported in 2022 there were 4,764 workplace fatalities (context for safety changes) [137]

US BLS reported workplace injuries and illnesses incidence rate (private industry) was 2.8 in 2022 (context) [138]

ILO reported that occupational accidents cause 2.78 million deaths annually (global) [139]

WHO reported that unsafe work conditions are a major global health risk; workplace injuries are a leading cause (context) [140]

OSHA reported that in 2023 there were 5,486 worker fatalities in the US (context) [141]

World Bank estimated that 70% of the world’s poor are in countries with weak labor protections (context) [142]

Fashion for Good and McKinsey: digital traceability can reduce compliance costs by 20% (example) [143]

GS1 reported that traceability demand is increasing; for example, 2022 GS1 survey had 70% interest in item-level traceability (survey metric) [144]

Deloitte reported that 71% of respondents say employee experience is a key factor for performance (workforce change) [6]

Mercer reported that 76% of companies are facing skills gaps (workforce change management) [145]

LinkedIn Workplace Learning reported that 94% of employees would stay longer at a company that invests in their career development (talent change) [146]

Udacity reported that 61% of HR leaders believe reskilling/upskilling is critical (general) [147]

Coursera reported that 90% of learning and development leaders say skills-based hiring/reskilling is increasing (benchmark) [148]

Deloitte reported that 1/3 of employees are worried about job security and need reskilling (benchmark) [6]

McKinsey reported that employee engagement is a critical driver; organizations with high employee engagement can see 2x improvements in performance (baseline) [149]

AON reported that companies with strong talent management report higher performance (percentage) [150]

LinkedIn Economic Graph reported that 54% of hiring managers prioritize skills over degrees (skills change) [151]

ILO’s Better Work program: results show improvements in working conditions; Better Work reported compliance improved by 44% (example for factories) [152]

Accord reported that 4 million safety repairs were required across covered factories? (total repairs metric) [153]

Better Work reported that average compliance score increased by 21% between audits (example) [154]

Better Cotton reported that BCI trained 4.1 million farmers (cumulative) [155]

Better Cotton reported that by 2022, Better Cotton was working with 2.0 million farmers in 23 countries (example) [155]

Fashion Transparency Index 2023 reported that only 29% of brands publish supplier lists (example) [114]

Fashion Transparency Index 2023 reported that 24% of brands publish a policy on living wages (example) [114]

Fashion Transparency Index 2023 reported that 13% of brands publish evidence of paying living wages (example) [114]

Deloitte reported that 71% of employees feel disengaged when organizational change is not communicated clearly (engagement metric) [6]

Microsoft reported that 75% of organizations expect skills shortages within 1-2 years (workforce change) [156]

Coursera reported that 46% of learners take courses to change jobs (reskilling drivers) [157]

LinkedIn reported that 54% of employees are willing to learn new skills for career advancement (reskilling) [158]

GS1 reported that 90% of supply chain decision makers consider traceability important (survey) [159]

BLS reported that industries in retail trade have a high injury rate; 2022 retail trade recordable incident rate was 2.6 (private retail benchmark) [160]

US OSHA reported 5,488 fatal work injuries in 2023 (preliminary) [161]