Digital Transformation In The Clothing Industry Statistics

McKinsey reports that e-commerce returns can account for 8% to 10% of revenue in fashion [1]

Appriss Retail (cited) reports returns fraud rate can exceed 20% in certain categories [2]

NRF reports that shoppers expect to be able to return online purchases in-store, with 92% agreement in a survey [3]

Forrester reports that omnichannel customers have a 306% higher lifetime value than single-channel customers [4]

Harvard Business Review reports that omnichannel customers spend 10% more online and 4% more in-store [5]

Google/Think with Google reports that mobile shoppers are 2x more likely to purchase compared with non-mobile [6]

Google data shows 76% of consumers who search for something nearby visit a store within a day [7]

Accenture reports that personalization can increase sales by 10% or more [8]

Salesforce reports that 88% of consumers say the experience a company provides is as important as its products/services [9]

Zendesk reports that 88% of customers are less likely to buy after a bad customer service experience [10]

Aberdeen Group reports that top-performing companies in customer engagement increase revenue by 85% [11]

Gartner predicts that by 2025, 25% of customer service organizations will use generative AI [12]

Juniper Research forecasts that mobile commerce purchases will reach $618 billion by 2024 [13]

Adobe reports that 42% of online shoppers say their mobile experiences affect their loyalty [14]

Adobe Analytics reports that retailers that improved site speed achieved conversion rate improvements of up to 8% [15]

Akamai reports that 1-second delay in page load can impact conversions by 7% [16]

Google reports that 53% of mobile site visits are abandoned if pages take longer than 3 seconds to load [17]

Microsoft/PCMag reports that 33% of shoppers expect real-time inventory visibility [18]

Vtex reports that 73% of consumers prefer to shop with consistent brand experience across channels [19]

IBM reports that 71% of consumers expect personalization based on previous interactions [20]

McKinsey says chatbots can reduce customer service costs by 30% by 2022 [21]

Twilio reports that 83% of consumers say they want proactive communication [22]

Zendesk reports that 61% of customers expect brands to provide real-time responses [23]

KPMG reports that 49% of customers have contacted customer service through digital channels [24]

Shopify reports that 47% of consumers expect product recommendations [25]

Retail Systems Research reports that digital kiosks can increase store conversion by 10% to 30% [26]

NRF reports that 61% of retailers plan to increase investment in omnichannel [27]

Shopify reports that 60% of consumers want more personalization than they currently receive [25]

Gartner reports that by 2024, 65% of organizations will use customer data platforms [28]

Global apparel retail e-commerce sales are forecast to grow from $553 billion in 2021 to $1,324 billion in 2025 [29]

Online fashion e-commerce penetration in the US is projected to reach 16.6% by 2025 [30]

In a McKinsey survey, 87% of respondents said they expect to use AI in at least one function within 2 years [31]

McKinsey reports that 72% of consumers expect companies to understand their needs and preferences [32]

Salesforce reports that 66% of consumers expect organizations to understand their needs and expectations [9]

IBM reports that 57% of consumers are willing to pay more for products and services from companies that provide a good customer experience [33]

Deloitte notes that 36% of consumers will switch brands if they have a bad experience [34]

Google/Think with Google reports that 48% of shoppers use smartphones to research products before buying [35]

eMarketer forecasts that US retail e-commerce will reach $1.1 trillion in 2024 [36]

eMarketer forecasts that US apparel and accessories e-commerce sales will reach $111.61 billion in 2024 [37]

eMarketer forecasts that global e-commerce sales will reach $6.3 trillion in 2024 [38]

eMarketer forecasts that global fashion e-commerce sales will reach $556.4 billion in 2023 [39]

Bain & Company reports that companies can increase profits by 25% to 95% by improving customer retention by just 5% [40]

McKinsey states that personalized offers can reduce marketing costs by 10% to 30% and increase revenue by 5% to 15% [41]

In a study cited by McKinsey, 76% of consumers who have used personalization feel that the experience is significantly more memorable [41]

Twilio Segment reports that 72% of consumers expect companies to deliver personalized interactions [42]

Gartner predicts that by 2025, 80% of B2C marketing interactions will be supported by AI [43]

Gartner predicts that by 2024, chatbots will have handled 25% of service interactions [44]

Shopify reports that 72% of shoppers engage with augmented reality experiences before purchase [45]

Retailers using AR see conversion rate improvements ranging from 40% to 300% according to Shopify’s compilation [45]

Snap/Statista indicates that 74% of people are more likely to buy products after trying them via AR [46]

Deloitte reports that 73% of consumers use multiple channels during the purchase journey [34]

NRF reports that 83% of consumers say customer experience influences their loyalty [47]

PwC reports that 32% of consumers will never buy from a company again after a data breach [48]

McKinsey reports that in personalization, leading companies can generate 40% more revenue from those activities [49]

Salesforce reports that 88% of marketers say it’s important to have real-time customer data [50]

Salesforce reports that 70% of consumers are willing to share data if it’s used to provide personalized experiences [9]

IBM reports that 48% of consumers say they would be happy to receive targeted advertising [33]

Gartner predicts that by 2025, the top three technologies driving digital transformation in retail will be AI, cloud, and data analytics [51]

McKinsey estimates that retailers could potentially reduce logistics costs by 20% to 30% using advanced analytics and optimization [52]

McKinsey reports that AI can reduce forecasting error by 20% to 50% in retail use cases [53]

McKinsey states that retailers could improve inventory turns by 20% to 50% by better demand forecasting [54]

IBM states that RFID can improve inventory accuracy to 95% and reduce inventory shrinkage by 50% [55]

Avery Dennison notes that RFID reduces out-of-stocks and improves stock availability by up to 10% [56]

Zebra Technologies reports that inventory accuracy can increase from 63% to 95% with RFID [57]

Zebra reports that RFID can reduce cycle counting costs by up to 50% [58]

SAP reports that using IoT and predictive maintenance can reduce downtime by 30% and maintenance costs by 25% [59]

Deloitte notes that digital twins can reduce design costs by 30% and time-to-market by 20% [60]

Accenture reports that connected worker technologies can boost productivity by 10% to 25% [61]

World Economic Forum reports that in supply chains, digitization can reduce lead times by 20% to 50% [62]

Gartner reports that by 2023, 75% of organizations will use cloud-based analytics platforms for supply chain [63]

McKinsey says that manufacturers can reduce energy consumption by 10% to 20% with digital technologies [64]

Microsoft reports that industrial IoT can reduce maintenance costs by up to 30% and downtime by up to 50% [65]

IBM states that real-time inventory visibility can cut safety stock by 25% in retail operations [66]

Blue Yonder reports that demand forecasting improvements can reduce stockouts by up to 30% [67]

ToolsGroup reports that AI-based inventory optimization can reduce total inventory by 10% to 30% [68]

Google Cloud states that retailers using data-driven supply chain can reduce warehouse costs by 10% to 20% [69]

Salesforce reports that stores using predictive analytics for replenishment can reduce stockouts by 10% to 25% [70]

Optoro reports that digitization and better inventory management can reduce reverse logistics costs by 10% to 20% [71]

Gartner predicts that by 2026, 60% of retail supply chain operations will be automated using AI [72]

McKinsey estimates that retailers can improve gross margins by 1% to 3% through better pricing analytics [73]

McKinsey reports that personalization can reduce supply chain costs via better demand planning by 3% to 5% [74]

PwC reports that data-driven logistics can reduce transportation costs by up to 20% [75]

US EPA notes that Industry 4.0 technologies can reduce manufacturing waste by 20% to 30% [76]

McKinsey reports that quality improvement programs can reduce defects by 20% to 50% using digital inspection and analytics [77]

UK Parliament (House of Commons Library) reports that RFID pilots in retail can reduce stock inaccuracies by around 20% to 30% [78]

GS1 reports that electronic data capture and visibility can reduce inventory inaccuracies by up to 25% in supply chains [79]

Gartner estimates that in 2024, organizations will spend more on IT in manufacturing and supply chain than in 2020 by 3.9% [80]

IBM reports that AI in supply chain can reduce forecast errors by 20% to 50% [81]

SAP notes that warehouse execution with automation and analytics can reduce picking errors by 50% [82]

Zebra reports that barcodes and scanning improve warehouse productivity by 25% to 40% [83]

McKinsey states that end-to-end supply chain digitalization can reduce end-to-end lead times by 30% to 50% [52]

McKinsey estimates that 55% to 70% of fashion waste comes from overproduction and unsold inventory [84]

Ellen MacArthur Foundation estimates that by 2050, there could be more plastic than fish in the ocean (plastic pollution scenario) [85]

McKinsey reports that 20% of clothing fibers are made from virgin resources in the fastest-growing segments [86]

EU rules: the European Commission adopted the Ecodesign for Sustainable Products Regulation proposing a sustainability framework impacting textiles [87]

EU Digital Product Passport initiative includes textiles/product traceability [88]

EU Commission: Corporate Sustainability Reporting Directive (CSRD) requires covered companies to report sustainability information [89]

European Commission reports that CSRD applies to companies with >250 employees and listed companies [90]

US EPA reports that textile waste is a major portion of municipal solid waste, with 11.3 million tons generated annually (2018) [91]

US EPA states that textile recycling is about 15% in the US [91]

EU EEA reports that 12.6 million tons of textile waste are generated annually across EU-27+UK [92]

UN Environment Programme reports that the fashion industry is responsible for about 10% of global carbon emissions [93]

World Resources Institute reports that changing from fast fashion to more durable consumption could reduce emissions by 44% [94]

McKinsey reports that circular business models can cut emissions by 30% to 50% [95]

IBM reports that supply chain transparency technologies can reduce risk by 20% in procurement [96]

Fashion brands are required under EU strategy to comply with due diligence and traceability requirements (German LkSG) [97]

Textile Exchange reports that verified sustainable cotton has reached 23.9 million metric tons in 2023 (global) [98]

Textile Exchange’s 2024 preferred fibers market reports that organic cotton accounts for 4.7% of global cotton fiber [99]

Textile Exchange reports that Better Cotton is grown on 13.2 million hectares in 2023 [100]

ISO 14067 carbon footprint standard supports product carbon footprint reporting [101]

ISO 14040 life cycle assessment standard (framework) [102]

US EPA notes that textiles account for about 5% of municipal solid waste in the US [91]

European Environment Agency states that textile consumption and waste impacts are rising in Europe, with 5.8 million tonnes waste textiles (2018) for EU? [92]

McKinsey estimates that retailers can use customer data and analytics to reduce marketing costs by 15% to 20% [103]

Gartner predicts that by 2026, enterprise data replication will increase by 2x due to AI-driven analytics [104]

Gartner says that by 2024, 30% of organizations will have implemented a data fabric [105]

Forrester reports that businesses using data-driven marketing achieve 5% to 15% higher returns [106]

McKinsey reports that data-driven organizations are 23 times more likely to acquire customers [107]

Experian reports that personalization can lift revenue by 10% or more [108]

Think with Google reports that advertisers that use machine learning increase conversions by 20%+ [109]

Google Cloud says that retailers can reduce time-to-insight from weeks to hours using BigQuery and data analytics [110]

Microsoft reports that generative AI can reduce content-production time by up to 50% [111]

IBM Watson states that AI can improve fraud detection accuracy by 20%+ [112]

AWS states that using IoT analytics can reduce operational costs by 10% to 30% [113]

Deloitte reports that organizations using cloud transformation can increase revenue by 2.5x vs non-adopters [114]

Oracle reports that 61% of enterprises expect to use AI-driven analytics in the next 12 months [115]

Adobe reports that marketers using AI will make 10% more accurate predictions on customer behavior [116]

SAP reports that using S/4HANA reduces reporting time by 50% in transformations [117]

UiPath reports that enterprises adopting RPA can achieve productivity gains of 30% to 50% [118]

KPMG reports that automation can reduce processing time by 30% to 80% in finance operations [119]

Celonis reports that process mining can reduce process costs by 20% to 30% [120]

Automation Anywhere reports that RPA can reduce costs by 30% to 50% [121]

Gartner predicts that by 2025, 50% of supply chain organizations will adopt AI to automate planning [122]

McKinsey estimates that retailers can automate back-office processes and reduce labor costs by 20% to 40% [123]

Accenture reports that 80% of retail organizations are investing in cloud and data platforms [124]

IBM indicates that data quality issues cost organizations an average of 15% of revenue [125]

Gartner reports that by 2026, 60% of enterprises will use a composable architecture [126]

Forrester reports that companies with strong analytics capabilities are 2x more likely to deliver above-average ROI [127]

WEF reports that by 2025, 10% of the global GDP will be stored on blockchain [128]

IBM reports that blockchain can reduce paperwork in trade by up to 80% [129]

Deloitte notes that blockchain can reduce counterfeit goods by 20% to 30% in tested supply chains [130]

Gartner predicts that by 2025, 70% of new business processes will use AI [131]

Google reports that by 2023, 58% of marketers used automation for at least one marketing channel [132]

Salesforce reports that 67% of businesses say they use AI for sales, marketing, and support [133]