Digital Transformation In The Garment Industry Statistics
Garment digital transformation boosts customer experience, operations, decisions, productivity, sustainability, traceability.
If digital transformation is the new runway for garment brands and manufacturers, the numbers make it clear: from 55% seeing better customer experiences and 39% improving operational performance to advances in decision-making, inventory optimization, sustainability, traceability, and AI adoption that are reshaping how fashion gets designed, produced, and sold.
Executive Summary
Key Takeaways
- 01
55% of manufacturers reported that digital technologies are improving their customer experience
- 02
44% of manufacturers said digital technologies have improved their ability to respond to changes in the market
- 03
34% of manufacturers said they use digital technologies to improve customer service
- 04
39% of manufacturers said digital transformation has improved operational performance
- 05
52% of manufacturers reported that digital technologies are improving decision-making
- 06
36% of manufacturers said they are using digital technologies for predictive maintenance
- 07
48% of manufacturers said digital transformation has improved employee productivity
- 08
18% of respondents said lack of skills is a top barrier
- 09
41% of manufacturers said digital technologies help them optimize inventory
- 10
33% of manufacturers said they have implemented digital technologies to improve supply chain visibility
- 11
30% of manufacturers reported using digital technologies for demand forecasting
- 12
35% of manufacturers said they use digital technologies to reduce energy consumption
- 13
32% of manufacturers said they use digital technologies to improve emissions reporting
- 14
48% of manufacturers said they invest in digital technologies to improve traceability
- 15
53% of companies in the 2020 McKinsey global survey said they have adopted at least one of five digital technologies (analytics, AI, IoT, cloud, automation)
Section 01
Customer & Sales Outcomes
55% of manufacturers reported that digital technologies are improving their customer experience [1]
44% of manufacturers said digital technologies have improved their ability to respond to changes in the market [1]
34% of manufacturers said they use digital technologies to improve customer service [2]
46% of manufacturers said they use digital technologies to improve marketing and sales effectiveness [2]
24% of respondents said they have implemented AI in customer operations [3]
34% of consumers are willing to share data to enable more personalized experiences [4]
73% of consumers expect companies to understand their needs and expectations [4]
62% of consumers expect personalized experiences based on their preferences [4]
50% of consumers are more likely to shop with brands that use personalization [4]
77% of consumers use multiple channels to interact with brands [4]
67% of customers expect real-time interaction [5]
80% of marketers say personalization is important [6]
52% of CEOs expect digital initiatives to impact revenue growth in the next 3 years [7]
60% of apparel companies are investing in e-commerce and digital channels [8]
Section 02
Digital Adoption & Capability
53% of companies in the 2020 McKinsey global survey said they have adopted at least one of five digital technologies (analytics, AI, IoT, cloud, automation) [3]
58% of companies in the McKinsey survey said they use AI at least occasionally [3]
27% of respondents said they are using AI frequently/at scale [3]
40% of respondents said they have invested in AI in the past 12 months [3]
36% of respondents said they plan to invest in AI in the next 12 months [3]
25% of respondents said they have AI governance in place [3]
29% of respondents said AI is integrated into business functions end-to-end [3]
21% of respondents said they are satisfied with AI performance [3]
34% of respondents said data quality is a top barrier to AI adoption [3]
46% of respondents said they have a data strategy [3]
31% of respondents said they have a chief data officer or similar role [3]
38% of respondents said they have automated decision-making [3]
69% of fashion brands have engaged in some form of digital initiative [9]
56% of companies report they have difficulty with data quality [10]
48% of organizations say they have difficulty integrating data from multiple sources [10]
53% of manufacturers struggle with siloed data [11]
30% of organizations are planning to invest in IoT in manufacturing [12]
22% of organizations have already implemented IoT in manufacturing [12]
37% of industrial companies said they use digital twins [13]
12% of industrial companies said they use digital twins at scale [13]
43% of companies said they achieved measurable improvements from digital transformation initiatives [14]
48% of CEOs said digital transformation is a top priority [7]
46% of companies said they have implemented digital procurement tools [15]
35% of companies said they use e-invoicing [15]
30% of apparel companies have already adopted 3D design and virtual sampling [16]
Section 03
Operational & Productivity Outcomes
39% of manufacturers said digital transformation has improved operational performance [1]
52% of manufacturers reported that digital technologies are improving decision-making [1]
36% of manufacturers said they are using digital technologies for predictive maintenance [2]
42% of manufacturers said they are using digital technologies for asset tracking [2]
47% of manufacturers said they are using digital technologies for quality management [2]
50% of manufacturers said they use digital technologies for remote monitoring [2]
20% of respondents said they use AI for product development [3]
45% of companies say they can improve asset utilization using digital twins [13]
38% of companies say digital twins reduce downtime [13]
29% of companies say digital twins improve maintenance scheduling [13]
41% of companies said digital transformation projects are delivered on time and within budget [14]
49% of companies said digital transformation improves cost structure [14]
25% of garment buyers are exploring virtual sampling technologies [17]
30% reduction in time-to-market with digital sampling (average) [18]
50% of fashion companies report faster design cycles from digital tools [19]
Section 04
Supply Chain & Inventory
41% of manufacturers said digital technologies help them optimize inventory [1]
33% of manufacturers said they have implemented digital technologies to improve supply chain visibility [2]
30% of manufacturers reported using digital technologies for demand forecasting [2]
22% of respondents said they use AI for supply chain operations [3]
65% of organizations struggle to access real-time data [10]
36% of companies said digital transformation reduces procurement costs [15]
44% of companies said digital transformation improves supply chain performance [15]
39% of companies said digital transformation reduces lead times [15]
31% of companies said they improved inventory turns through digital initiatives [15]
40% of companies said they use blockchain pilots for supply chain [20]
10% of companies said they have implemented blockchain in production for supply chain [20]
33% of companies said blockchain reduced dispute resolution time [20]
55% of retailers say they are using some form of RFID [21]
20% lower inventory costs from improved forecasting in apparel (average) [22]
45% of fashion firms expect AI will influence demand planning [23]
Section 05
Sustainability & Compliance
35% of manufacturers said they use digital technologies to reduce energy consumption [2]
32% of manufacturers said they use digital technologies to improve emissions reporting [2]
48% of manufacturers said they invest in digital technologies to improve traceability [2]
38% of manufacturers said digital technologies help them comply with regulations [2]
43% of manufacturers said they use digital technologies to reduce waste [2]
45% of manufacturers said digital technologies help them improve sustainability reporting [2]
23% of respondents said they use AI for risk management [3]
33% of companies say digital twins can improve energy efficiency [13]
28% of companies said blockchain improved traceability [20]
22% of companies said blockchain reduced fraud [20]
80% of garment supply chain companies say they need better traceability [24]
Section 06
Workforce & Skills
References
Footnotes
- 1www2.deloitte.com×7
- 3mckinsey.com×2
- 4salesforce.com×2
- 5gartner.com×3
- 7pwc.com×4
- 8statista.com
- 9businessoffashion.com
- 16technicaltextiles.net
- 18reportlinker.com
- 21gs1.org
- 23ibm.com