Cloud Computing In The Clothing Industry Statistics
Cloud smart manufacturing and IoT boost efficiency, visibility, analytics, and innovation.
Cloud computing is quickly becoming the secret engine behind smarter, faster and more secure fashion and apparel operations, from connected smart manufacturing and IoT analytics to cloud AI, better supply chain visibility, and the customer experiences consumers now expect across every channel.
Executive Summary
Key Takeaways
- 01
37% of global respondents said they use cloud services for “smart manufacturing” (including manufacturing operations such as connected equipment)
- 02
50% of manufacturers said their IoT data is stored in the cloud
- 03
39% of manufacturing companies surveyed said they are using cloud services for IoT
- 04
38% of apparel companies have adopted or are piloting cloud technology for e-commerce and digital channels
- 05
27% of apparel companies reported cloud adoption to support mobile shopping experiences
- 06
24% of apparel companies reported using cloud-based personalization
- 07
72% of organizations report that they have adopted cloud for security/identity services
- 08
63% of organizations report cloud security risks are being actively managed
- 09
52% of organizations use cloud security monitoring tools
- 10
35% of organizations using cloud had cost overruns due to inefficient resource utilization
- 11
28% said they lack cloud cost visibility/chargeback
- 12
24% said they need better budgeting and forecasting for cloud
- 13
45% of apparel companies reported adopting cloud for digital product design and development
- 14
38% reported adopting cloud for PLM (product lifecycle management)
- 15
33% reported adopting cloud for supply chain collaboration
Section 01
Adoption, Technology & Digital Transformation Cloud
45% of apparel companies reported adopting cloud for digital product design and development [1]
38% reported adopting cloud for PLM (product lifecycle management) [1]
33% reported adopting cloud for supply chain collaboration [1]
41% of retailers said they are using cloud-based AI/ML to improve recommendations [2]
26% of retailers said they are using cloud-based AI/ML for forecasting demand [2]
29% of retailers said they use cloud for computer vision in stores/warehouses [2]
54% of organizations said they use cloud-based services for data analytics [3]
47% said they use cloud-based services for AI [3]
39% said they use cloud-based services for IoT [3]
61% of companies have adopted cloud computing in some form (flexera cloud report) [4]
48% of organizations said they use public cloud primarily for business applications (flexera) [4]
29% use hybrid cloud (flexera) [4]
38% use multi-cloud (flexera) [4]
27% of respondents said they plan to increase cloud spend in the next 12 months (flexera) [4]
33% said they are modernizing existing apps to run in cloud [4]
45% said they are refactoring or re-architecting applications for cloud (flexera) [4]
21% said they are using containers [4]
24% said they are using Kubernetes [4]
26% said they are using serverless (flexera) [4]
36% said they are using data lakes in cloud (flexera) [4]
30% said they are using SaaS for core business functions (flexera) [4]
32% said they are using cloud for collaboration and productivity (flexera) [4]
28% of fashion companies use SaaS for ERP operations [5]
25% use SaaS for HR and payroll [5]
22% use SaaS for accounting [5]
34% of retailers are migrating ERP or ERP-adjacent systems to the cloud (survey) [6]
27% are migrating SCM systems to the cloud (survey) [6]
29% are migrating e-commerce platforms to cloud hosting (survey) [6]
40% of apparel companies are using cloud to integrate data across the supply chain [7]
31% are using cloud for supplier onboarding/digital documentation [7]
24% use cloud for traceability of materials (e.g., fiber/batch) [7]
18% of retailers have implemented cloud-based traceability for product origin [8]
21% plan to implement traceability systems in the next 2 years [8]
26% use cloud for sustainability reporting [9]
23% use cloud to automate ESG data collection [9]
28% of fashion brands say they’re digitizing to reduce environmental impact [10]
22% say technology is used to reduce material waste (supported by digital/cloud systems) [10]
19% of fashion brands reported using cloud-based platforms to manage carbon footprint data [10]
27% of retailers use cloud-based supply chain planning tools [11]
23% use cloud-based inventory optimization tools [11]
21% use cloud-based warehouse management [11]
40% of organizations say cloud migration is driven by agility [12]
33% say it is driven by scalability [12]
29% say it is driven by lower costs [12]
26% say cloud migration is driven by faster innovation [12]
35% of companies have standardized cloud deployment pipelines (CI/CD) (survey) [13]
30% have standardized infrastructure-as-code [13]
25% use automated testing/observability in cloud pipelines [13]
32% of companies use cloud to improve operational resilience (backup/DR) [14]
28% use cloud for business continuity planning [14]
23% use cloud for backup and disaster recovery testing [14]
45% of fashion brands use digital channels as major revenue streams (driving cloud demand) [15]
28% of fashion sales are online (worldwide) [15]
31% of apparel companies have adopted cloud-based analytics for merchandising decisions [16]
26% use cloud-based customer analytics [16]
24% use cloud-based demand forecasting tools [16]
22% use cloud-based supply chain traceability platforms (apparel) [17]
19% use cloud-based ESG reporting platforms (apparel) [18]
Section 02
Consumer & Retail Cloud
38% of apparel companies have adopted or are piloting cloud technology for e-commerce and digital channels [19]
27% of apparel companies reported cloud adoption to support mobile shopping experiences [19]
24% of apparel companies reported using cloud-based personalization [19]
30% of retailers said cloud data improves customer segmentation accuracy [20]
28% of retailers said cloud supports real-time pricing or promotions [20]
33% of retailers reported improved omnichannel inventory availability due to cloud [20]
40% of retailers using personalization said it increased conversion rates by at least 10% [21]
36% of e-commerce leaders said cloud infrastructure enables A/B testing at scale [22]
29% of retailers reported that cloud helps them unify customer data from multiple channels [23]
23% of apparel brands said they use cloud-based content management systems for product pages [24]
35% of retailers said cloud enables faster website performance and uptime [25]
20% of retailers said outages are reduced by using global cloud/CDN [25]
31% of retailers using cloud reported reduced IT costs compared to on-premises [26]
26% of retailers using cloud reported faster scaling during seasonal demand (e.g., holidays) [26]
37% of organizations said cloud helps them launch new digital products quickly [27]
42% of retailers said cloud improves customer experience [28]
46% of businesses using cloud analytics reported improved customer satisfaction [29]
39% of companies reported that cloud-based analytics improved campaign performance [29]
32% of apparel retailers use cloud-based POS and inventory syncing [30]
27% of retailers use cloud-based store systems for real-time stock checks [30]
25% of retailers reported improved store labor scheduling due to cloud analytics [30]
34% of retailers reported increased online conversion after moving to cloud-hosted platforms [31]
28% of retailers reported improved site speed after cloud migration [31]
31% of retailers reported improved omnichannel order management after adopting cloud-based systems [31]
26% of fashion brands use cloud for marketing automation [32]
29% of marketers said they use cloud tools to personalize experiences [32]
24% of retailers used cloud data to support loyalty programs [33]
41% of retailers reported using cloud to integrate e-commerce and physical inventory systems [34]
36% of retailers reported improved returns processing after adopting cloud systems [34]
33% of fashion companies reported using cloud-based AR/virtual try-on experiences [35]
25% of fashion companies reported using cloud-hosted recommendation engines [35]
20% of retailers reported using cloud to automate customer service chatbots [36]
27% of retailers using chatbots saw higher customer engagement [36]
44% of consumers said they expect consistent shopping experiences across channels [37]
35% of consumers said they expect real-time inventory availability [37]
46% of consumers expect fast load times [38]
30% of consumers abandon websites that are slow [38]
Section 03
Cost, ROI & Governance Cloud
35% of organizations using cloud had cost overruns due to inefficient resource utilization [39]
28% said they lack cloud cost visibility/chargeback [39]
24% said they need better budgeting and forecasting for cloud [39]
30% of organizations said they use governance tools to manage cloud resources [39]
32% of organizations said they use automation for cost optimization [39]
28% of cloud spend is wasted due to poor resource optimization (often cited estimate from Flexera) [40]
47% of organizations said right-sizing reduces costs significantly (FinOps survey estimate) [40]
33% said they saved money by scheduling/instance controls [40]
36% said they reduced costs through reserved instances/savings plans [40]
21% said they reduced costs by using containerization [40]
41% of respondents said cloud adoption improved their ROI [41]
35% said cloud improved time-to-value (ROI realization) [41]
37% said cloud reduced IT costs [41]
30% said cloud improved operational efficiency [41]
27% said cloud improved customer service capabilities [41]
54% of organizations reported that they have a cloud governance strategy [42]
46% reported using cost management/FinOps practices [42]
39% reported using policies/standards for cloud resources [42]
33% reported conducting regular compliance and risk assessments for cloud [42]
28% reported implementing tagging/chargeback to manage costs [42]
22% of companies stated that cloud migration reduced their capex needs relative to opex [43]
25% said it improved budget predictability [43]
31% said cloud helped reduce procurement cycle times [43]
23% said cloud improved resource utilization rates [43]
26% said it reduced waste from idle infrastructure [43]
50% of companies expect cloud to contribute to cost reduction over time (Gartner survey) [44]
36% said cost optimization is the top cloud initiative (Gartner survey) [44]
29% said reducing cloud spend is a top priority (Gartner survey) [44]
32% said they use FinOps to improve cloud unit economics (Gartner survey) [44]
27% said they use automation to reduce cloud costs (Gartner survey) [44]
30% of fashion retailers reported improved forecast accuracy via cloud analytics (leading to inventory cost reduction) [45]
22% of fashion retailers reported reduced markdowns due to better forecasting [45]
26% of fashion retailers said cloud-based supply chain improvements reduce stockouts [45]
19% of fashion retailers said cloud improved logistics costs [45]
24% of fashion retailers said cloud improved operational efficiency (cost to serve) [45]
10% reduction in inventory carrying costs is typical when improving supply chain planning accuracy (McKinsey supply chain finance benchmark) [46]
20% reduction in stockouts is possible with supply chain visibility improvements (McKinsey benchmark) [46]
15% reduction in logistics costs is possible with optimization (McKinsey benchmark) [47]
12% reduction in procurement cycle time with digitization/automation (McKinsey benchmark) [48]
25% improvement in order fulfillment speed with supply chain digitization (McKinsey benchmark) [49]
3.5% of global GDP is projected to be lost due to inefficient cloud costs and wasted spend (estimate widely cited from Flexera/IDC context) [50]
20% of cloud resources are overprovisioned in many enterprises (common FinOps estimate) [50]
17% of cloud spend is attributable to underutilized resources (FinOps waste) [50]
15% savings potential is reported by organizations after implementing FinOps (Flexera) [51]
22% savings potential is reported after improving rightsizing (Flexera) [51]
18% savings potential is reported after optimizing storage (Flexera) [51]
16% savings potential is reported after optimizing idle resources (Flexera) [51]
26% of organizations have established a dedicated cloud center of excellence (CCoE) [52]
24% of organizations use a product/team model for cloud governance [52]
29% of organizations have cloud KPIs for cost and performance tracking [52]
27% use chargeback/showback mechanisms for cloud spending [52]
21% have defined cloud risk policies and controls (Gartner survey) [52]
Section 04
Manufacturing & Operations Cloud
37% of global respondents said they use cloud services for “smart manufacturing” (including manufacturing operations such as connected equipment) [53]
50% of manufacturers said their IoT data is stored in the cloud [54]
39% of manufacturing companies surveyed said they are using cloud services for IoT [54]
35% of manufacturers surveyed said cloud-based analytics are used to interpret IoT data [54]
62% of organizations reported cloud-based AI/ML is improving operational efficiency [55]
45% of organizations reported cloud adoption is speeding up the deployment of new business capabilities [56]
68% of manufacturers have begun using cloud-based solutions for analytics [57]
55% of manufacturers expect to increase their use of cloud solutions for manufacturing over the next 12 months [57]
42% of manufacturers say cloud is important to their competitive advantage [57]
47% of manufacturers say they’ve adopted cloud for collaboration across teams [57]
61% of manufacturers say cloud adoption has improved supply chain visibility [57]
29% of manufacturers said they use the cloud for demand forecasting [57]
33% of apparel executives reported cloud-based systems improve visibility into inventory and demand signals [58]
28% of apparel executives reported using cloud for logistics tracking and shipment visibility [58]
26% of apparel executives reported cloud analytics are used for demand planning [58]
21% of apparel executives reported using cloud-based systems for product lifecycle management (PLM) [58]
24% of apparel executives reported cloud-based collaboration improves product development cycle times [58]
45% of fashion executives expect cloud computing to be essential for digital transformation [59]
51% of retailers reported improved supply chain visibility due to data platforms [60]
34% of retail organizations said cloud platforms improved fulfillment speed [60]
36% of fashion companies use cloud-based data platforms for analytics [61]
33% of fashion companies use cloud-based data platforms for personalized offers [61]
31% of fashion companies use cloud-based data platforms for real-time inventory visibility [61]
40% of apparel companies plan to use more advanced analytics hosted in the cloud [62]
27% of surveyed retail/fashion organizations use cloud for customer data platforms [33]
22% of surveyed retailers use cloud for product information management [33]
30% of manufacturers using IoT reported cloud as a key part of their architecture [63]
26% of manufacturers reported using cloud for robotics/automation analytics [63]
28% of manufacturers said cloud supports remote monitoring of production equipment [63]
32% of companies said cloud-based analytics reduces downtime [64]
25% of companies said cloud-enabled predictive maintenance is used to cut maintenance costs [64]
44% of organizations using cloud said it improved productivity [65]
36% of organizations using cloud said it improved data access speed [65]
31% of organizations using cloud said it improved collaboration [65]
34% of organizations using cloud said it improved time-to-market [65]
Section 05
Security, Risk & Compliance Cloud
72% of organizations report that they have adopted cloud for security/identity services [66]
63% of organizations report cloud security risks are being actively managed [66]
52% of organizations use cloud security monitoring tools [66]
46% of organizations said compliance requirements drive their cloud strategy [67]
41% said they face difficulties meeting compliance when using cloud [67]
55% of organizations use encryption at rest in the cloud [68]
49% use encryption in transit in the cloud [68]
33% said they use tokenization for sensitive data in cloud [68]
27% said they use data masking in their cloud environments [68]
58% of breaches involve credentials (or account takeovers) per Verizon Data Breach Investigations Report [69]
29% of breaches are related to “web application” vectors per Verizon DBIR [69]
16% of breaches involve “hacked” incidents per Verizon DBIR [69]
81% of data breaches are financially motivated according to Verizon DBIR [69]
53% of organizations say cloud security is a top concern [70]
45% of organizations say they lack visibility into cloud security posture [70]
37% of cloud misconfigurations are due to missing security groups/firewall rules [71]
30% of cloud misconfigurations are due to overly permissive IAM roles [71]
35% of organizations cite data privacy concerns as a barrier to cloud adoption [72]
28% cite regulatory compliance issues as barrier [72]
22% cite security concerns as barrier [72]
69% of organizations in a survey said they use a formal policy for cloud access management [73]
64% use automated compliance checks for cloud resources [73]
57% of organizations said they have implemented data loss prevention (DLP) in cloud [73]
40% said they use SIEM for cloud monitoring [73]
48% of organizations reported that auditing cloud access is essential for compliance [73]
31% of organizations said they conduct regular penetration tests of cloud environments [73]
26% of organizations use cloud compliance frameworks aligned to ISO/IEC 27001 [73]
38% of organizations say GDPR compliance impacts cloud decisions [74]
33% say they use international cloud data transfer mechanisms (e.g., SCCs) [74]
27% say they face penalties risk due to GDPR [74]
29% of organizations had a cloud-related security incident in last 12 months per a KPMG survey [75]
34% said misconfiguration was the cause in those incidents [75]
21% said stolen credentials caused incidents [75]
28% said third-party/vendor access led to incidents [75]
39% of organizations said they need better cloud security visibility [76]
44% of organizations said they need better identity and access controls for cloud [76]
37% of organizations said they lack automated compliance evidence collection for cloud [76]
26% said they struggle with audit readiness in cloud environments [76]
31% said their biggest cloud risk is data exposure [76]
23% said their biggest risk is misconfiguration [76]
30% of organizations said compliance reporting is more complex in hybrid/multi-cloud setups [77]
26% said they need more controls for cloud [77]
41% of retailers experienced a data breach (including web apps) within a 5-year window per IBM Cost of a Data Breach report [78]
55% of breaches took weeks or longer to identify per IBM Cost of a Data Breach report [78]
19% took under a day to identify (per IBM report distribution) [78]
11% of breaches took less than a week to identify (per IBM report distribution) [78]
8% of breaches took 1-2 months to identify (per IBM report distribution) [78]
23% of consumers share that they will stop shopping with a company after a data breach [78]
References
Footnotes
- 1managedservicesprovider.com
- 2mckinsey.com×6
- 3microsoft.com×4
- 4flexera.com×5
- 5www2.deloitte.com×19
- 6sap.com
- 7cio.com×2
- 10unep.org
- 11oracle.com
- 13hpe.com
- 14cisco.com
- 15statista.com×4
- 19businesswire.com
- 21exponea.com
- 22optimizely.com
- 24gartner.com×6
- 25cloudflare.com
- 29sas.com×2
- 32salesforce.com×3
- 38thinkwithgoogle.com
- 42cloudsecurityalliance.org×2
- 54zdnet.com
- 56ibm.com×4
- 61capgemini.com
- 63itu.int
- 66csoonline.com
- 67pwc.com×2
- 69verizon.com
- 70tenable.com
- 71prisma-cloud.com
- 75kpmg.com