Fast-Moving Tech—

Fast-Paced Fashion
Weaving the Fabric of the Future

June 2024
By Christian Kirschniak, Sebastian Boger, Stefan Trifonov, Anton Haberler-Koenig, Florian Burger, and Felix Graeber
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Contents
1 | Management Summary
2 | Introduction
3 | Mission #1. Set the Frame:
Deliver Lean Core Platforms to
Maximize Business Agility
3.1 Ultra-fast will be ultra-disruptive
3.2 Price is #1
3.3 Out of stock = out of revenue
3.4 High interest for high-tech
4 | Mission #2. Seamless Integration:
Unify the Shopper Journey through
Integrated Tech
4.1 Omnichannel dominates
4.2 Offline inspiration matters
4.3 Online buys more
4.4 Mass market losing online
5 | Mission #3. Fashion Forward:
Embrace Data to Elevate the
Business to the Next Level
5.1 Recommendations drive revenue
5.2 Content expectations are evolving
5.3 Experience matters
5.4 Mixed willingness to pay for
sustainability
6 | Mission #1 to #3:
Unleashing Game-Changing
Capabilities in Fashion
6.1 Modern core system plays a pivotal role
6.2 Gain momentum with a state-of-the-
art POS system and an integrated
e-commerce platform
6.3 Secure competitive advantage with
a customer data platform and a
recommendation engine
7 | Fashion Tech Interviews
7.1 Cristiano Agostini, Group CIO, Prada
Group
7.2 Joel Ankarberg, Senior Industry Expert,
CxO for Tech & Data in Fashion & Luxury
7.3 Jan Buchartz, Vice President Global
Digital Strategy & European Digital
Solutions, PUMA Group
1 | Management Summary
T
he fashion and luxury industries are at a critical
juncture: adapt digitally or risk obsolescence. The
landscape is being revolutionized by rapid technolog-
ical advancements. Since 2020, a small selection of ultra-
fast fashion players have entered the industry, massively
scaling their revenues by gaining market share from
incumbent players and using technology to their advan-
tage. Price, availability, and variety have become crucial
elements driving the business. A significant portion of
young customers now prefer brands that excel online, with
a substantial number embracing fast fashion.
This shift accelerates critical challenges for fashion and
luxury market sectors, which are notably behind in digital
maturity compared to industries such as high tech and
retail as a whole. Established fashion players must urgently
invest in technology to keep pace with industry leaders and
remain competitive (see Exhibit 1), especially within the
incoming younger customer segments.
4
These insights are derived from the recent study Fast-Mov-
ing Tech—Fast-Paced Fashion: Weaving the Fabric of the
Future by BCG, which included an exclusive survey of
10,000 consumers across Europe and the United States.
Here are the key findings:
Fashion players’ technology strategies must
fulfill 3 CIO missions to deliver on current and
future shopper needs
Mission #1:
Deliver lean core platforms to maximize business agility
• Legacy technology hinders innovation and flexibility,
requiring conscious decisions on processes in lean core
platforms versus ecosystem solutions.
FAST-MOVING TECH – FAST-PACED FASHION
Mission #2:
Unify the shopper journey through integrated tech
• Omnichannel players can leverage their brick-and-mor-
tar advantage to offer a unified customer journey that
wows and increases spending.
Mission #3:
Embrace data to elevate the business to the next level
• Companies must leverage data holistically as a competi-
tive asset and deploy advanced (AI) use cases across the
value chain to maximize the customer experience and
operational efficiency.
Online excellence drives fashion sales:
Shoppers demand superior digital experiences
• Nearly 75 percent of the 18 to 34 demographic prefer
brands that excel online, highlighting the importance of
digital proficiency.
• Shoppers are 1.4 times more likely to purchase recom-
mended products, underscoring the influence of online
engagement.
• Efficient inventory management is crucial, as over 60
percent of shoppers abandon purchases when items are
out of stock, with online customers five times more likely
to wait for restocks.
Ultra-fast fashion captures the youth market:
Majority of young women lead the charge
• Two-thirds of women aged 18 to 24 have embraced ultra-
fast fashion (UFF), indicating a significant trend among
younger customers.
• One-third of young men express curiosity about UFF,
indicating untapped market potential.
• The United States leads in UFF adoption, with a 12 per-
cent preference rate compared to Europe’s 7 percent.

• Online shoppers—those who prefer to make purchases
online rather than in traditional brick-and-mortar
stores—tend to buy more products per transaction than
offline shoppers.
• 70 percent of online shoppers purchase multiple items
per transaction compared to only 49 percent of offline
shoppers.
In conclusion, success in the fashion industry hinges on
embracing technological advancements and catering to
the preferences of digitally savvy customers. By prioritizing
agility, integration, and data-driven strategies, fashion
players can stay ahead of the curve and thrive in a rapidly
evolving market landscape.

Exhibit 1 | Anything but a first mover

Fashion and Luxury is trailing behind other industries in digital capabilities*

Average benchmark scores across selected industries in digital capabilities versus tech efficiency and resilience

High

Digital focus World Class

Digital businesses Tech function
Digital Capabilities

Insurance
High tech Financial services
Consumer goods
Retail overall Cross-industry average
Utilities Healthcare
Fashion and luxury retail
Oil and gas

Improvement Efficiency/
Low n eed Resilience focus

Low Tech Efficiency and Resilience High

*
Digital capabilities of the IT/tech function evaluated along six major dimensions: Business/tech operating model; digital, data and AI; technology
landscape; talent, culture, and processes; sourcing excellence; and cybersecurity.

BOSTON CONSULTING GROUP 5

2 | Introduction
The fashion market is undergoing fundamental change.
Ultra-fast fashion (UFF) companies are entering the mar-
ket, putting massive pressure on retail fashion merchants
and pure e-commerce players alike. They are setting new
standards in the digital customer experience, creating
con­­­­ditions that established providers lag behind. While
digibily-minded retailers such as UFF players invest 6 to 14
percent of their revenue on tech, traditional retailers spend
only 1 to 3 percent (see Exhibit 2). Additionally, fashion
companies already trail behind other industries in terms of
digital maturity (see Exhibit 1). This prompted Boston Con-
sulting Group to take a closer look at fashion shopping
behavior in Europe and the United States.
1. Austria, Czech Republic, France, Germany, Hungary, Italy, Poland, Spain, Switzerland, USA
6
In a large-scale proprietary direct customer study, 10,000
customers in 10 countries1 in Europe and the United States
were asked. These three objectives serve as the core focus
of the research, enabling fashion tech executives to make
informed decisions and strategic investments:
• Evaluate today’s primary shopper journeys, behaviors,
and preferences and discern the key differences in their
fashion needs.
• Identify major and emerging shopper trends and exam-
ine the role of technology in shaping them.
• Prioritize areas for technology and digital transformation
to gain a competitive advantage.
FAST-MOVING TECH – FAST-PACED FASHION
Exhibit 2 | Tech investments in the fashion industry
Traditional players lag far behind e-commerce natives

Tech spend versus share of sales through e-commerce

Tech spend (%) of revenue

15.0
Traditional mindset E-comm Player
• Traditional retailers spend only
12.0 1–3% of revenue on Tech UFF-player
• 5-year revenue CAGR ~ 4–6% Online fashion retailer A
Digital mindset
9.0 • Digitally-minded retailers spend
6-14% of revenue on Tech
Online fashion retailer B
• 5y Revenue CAGR ~24-28%
6.0 Multi-brand fashion player A

Sportswear brand A Multi-brand fashion player B E-commerce pure play Player

Fashion brand average, BCG IT fact base
Sportswear brand B Industry benchmark
Retail average, Indicative position
BCG IT Factbase
0.0
0 10 20 30 40 50 60 70 80 90 100 E-commerce ratio (%)
as e-comm sales/revenue

The respondents shared in-depth fashion attitudes and
behaviors across the most pressing fashion tech topics:
best shopping experiences, sources of influence, online
versus offline preferences, generational differences, as well
as sustainable views versus behaviors.
This resulted in 12 key shopper behavior shifts that are
shaping the industry (see Exhibit 3).
From these, three missions have been identified that chief
information officers (CIOs) should consider in shaping their
technology and digital strategy. The following chapters dive
deeper into these missions along the impacts on the
fashion industry and technology. At the conclusion, the
report outlines the key capabilities of the recommended
technological innovations, highlights important consider-
ations for their implementation, and provides insights from
interviews conducted with CIOs of fashion and luxury
players.

Exhibit 3 | 12 Key shopper behavior shifts caused by and with an impact on

digitalization of the fashion industry
Set the frame: Seamless integration: Fashion forward:
Mission Mission Mission
Deliver lean core platforms Unify the shopper journey Embrace data to elevate the
#1 to maximize business agility #2 with integrated tech #3 business to the next level

Content
Ultra-fast will be Price is Omnichannel Offline inspiration Recommendations
expectations are
ultra-disruptive #1 dominates matters drive revenue
evolving

Mixed willingness
Out-of-stock = High interest for Online buys Mass market Experience
to pay for
out-of-revenue high-tech more losing online matters
sustainability

BOSTON CONSULTING GROUP 7

3 | Mission #1. Set the Frame
Deliver Lean Core Platforms to Maximize Business Agility
T
he emergence of ultra-fast fashion players has signifi-
cantly influenced customer expectations, particularly
in terms of price, availability, and variety. Upon exam-
ining legacy fashion and luxury players, it becomes evident
that their current technological infrastructure falls short of
meeting the demands of contemporary shoppers. Outdated
platforms such as monolithic legacy ERP systems serve as
barriers to innovation, hindering their ability to adapt and
evolve. Thus, there is a pressing need to transition towards
lean, modular platforms to foster agility in business models
and enhance competitiveness in the market. This is an
imperative for fashion and luxury companies despite
emerging cost pressure in the current market situation.
Fashion players furthermore need to clarify their strategic
priorities to determine their ERP structure. First, they need
to be clear on their overall tech and digital strategy and
derive their relevant “right-to-win” and “right-to-play”
8
capabilities, and take a closer look at them through differ-
ent lenses (e.g., need for flexibility in customization versus
functional stability of the system). Second, based on an
integrated capability view, explicit decisions will have to be
made on which capabilities and processes fall within the
ERP’s lean core versus its ecosystem. Only after analyzing
its game plan in these two specific areas can a player
adjust its platforms, given that there is no one-size-fits-all
lean platform.
BCG insight: Many companies are aware of this and are
pursuing (fragmented) modernization projects. Especially
in highly complex, large-scale transformation programs
such as ERP transformations, cost overruns of 50–100%
compared to the original plan are the rule rather than the
exception. This has obvious negative implications for the
business and creates large uncertainty around the value of
these programs—also among investors.
FAST-MOVING TECH – FAST-PACED FASHION
3.1 Ultra-fast will be ultra-disruptive
The findings: Ultra-fast fashion platforms are disrupting
the market significantly, gaining share as they establish a
strong presence among young customers and increasingly
expand into the men’s sector.
• Two-thirds of women aged 18–24 have experimented with
ultra-fast fashion, while men show a lower preference but
considerable interest, indicating a potential market gap.
• Even the 35-and-over demographic shows interest in
ultra-fast fashion. Among 35-and-over women, 55 percent
have either made purchases or expressed interest, while
the figure stands at 46 percent among 35-and-over men.
• The United States is leading with a 12 percent adoption
of ultra-fast fashion, compared to 7 percent in Europe.
In the United States, 36 percent have already purchased
ultra-fast fashion, compared to 32 percent in Europe.
• In Europe, Hungary clearly stands out from the average:
12 percent buy ultra-fast fashion there, compared to 7
percent in Europe as a whole.
“Ultra-fast fashion offers a large selec-
tion of trendy products at low prices.”
Female, 46, France
3.2 Price is #1
The findings: The price (value) is consistently the most
important purchase consideration across all channels
(see Exhibit 4).
• For 60 percent of shoppers, price and value are the top
shopping drivers, followed by free shipping and variety
for online shoppers and variety and store location for
offline shoppers.
• The least important factors are customer support and
click and collect among online factors and interactive
­f­itting rooms and inventory and stock check apps among
offline factors.
“My preferred ultra-fast fashion brand offers the opportunity to indulge myself at
very low prices, and it has a points program that makes me visit the app every day.”
Male, 30, Spain
BOSTON CONSULTING GROUP
Strategic implications: Competition and market share in
the fashion industry are under massive pressure.
1 The customer expectations regarding availability,
price, and variety are rising across all fashion players.
2 Ultra-fast fashion companies have significant cost
advantages, given they do not need to modernize
legacy technology and their profitable “on-demand”
production, mean­­­ing manufacturing upon receipt of a
relevant quantity of orders.
3 On the other hand, ultra-fast fashion players lack the
benefits of retail stores and physical touchpoints, allow-
ing for more traditional players to use existing physical
assets to regain a competitive advantage in building
brand image, customer relationships, and purchase
inspiration as well as giving space to micro-fulfillment
centers within stores.
Key requirements for technology:
Modern, modular architecture
To keep pace with ultra-fast fashion brands, traditional
omnichannel providers require agile, modular systems with
low tech debt, enabling the development of new business
models to compete. This is true for large core systems such
as ERP but also within a wide range of capabilities includ-
ing pricing, loyalty, replenishment, and others.
Strategic implications: Given the sensitivity among both
online and offline shoppers, fashion brands must prioritize
their pricing strategies. This doesn’t necessarily refer to the
absolute price, but rather the concept of value.
1 Tiered pricing, loyalty programs, discounts, or other
initiatives and tools should be established or further
enhanced to make customers feel they can save and
obtain the best price and value.
2 It’s also crucial in this context to factor in free ship-
ping in online business models, to have the “right-to-
play” in comparison to ultra-fast fashion players.
9
Exhibit 4 | Value matters
Price/value is most important purchase consideration for online and in-store shopping

Importance of factors in online and in-store shopping

Weighted Online factors Offline factors
ranking
1st Price/value 59% Price/value 44%

2nd Free shipping 43% Variety 35%

3rd Variety 39% Store location 29%

4th Returns 30% Being able to touch the product 30%

…
2nd to last Customer support 11% Interactive fitting room 6%

Last Click and collect 9% Inventory and stock check apps 6%

% Percentage of people in the channel who ranked the factor in their top 3

3 Customer support, click and collect, and inventory

and stock check apps should be considered as hygiene
3.3. Out of stock = out of revenue

factors to customers—they are not true differentiators The findings: When a product is out of stock, it often
in customers’ eyes but are critical to their shopping results in a lost sale, as shoppers typically do not opt for a
journey. substitute item (see Exhibit 5).

Key requirements for technology: • Over 60 percent of shoppers do not purchase an item in
Leverage tech to cut costs the event that their desired product is unavailable.

Utilize core system usage for cost-efficient operations • 28 percent of online shoppers tend to set a reminder to
online and offline, and clearly link technology spending to be informed when the item is back in stock—in contrast,
the business strategy, using data to focus efforts where only 11 percent of offline shoppers set the same type of
they bring the most value. reminder.

Exhibit 5 | Out of stock

Online fashion retailers manage to secure sales with the help of reminders

Impact of product unavailability by channel preference (in %)

I purchase a similar item

32 35 33 34 I set a reminder to be informed
36
when the article is back in stock
(if possible)
6
I delay the purchase without a reminder
14 13
26 30 29 I do not purchase anything
16 Other, please specify

14 I prefer not so say

14 14
44
33
23 21 20

3 2 1 1 1 2
Exclusively in-store More often in-store Similarly often More often online Exclusively online

10 FAST-MOVING TECH – FAST-PACED FASHION

• 44 percent of exclusively offline shoppers are inclined
not to purchase the item at all, while this is only true for
20 percent of exclusively online shoppers.
Strategic implications: As unavailability results in
missed revenue, achieving optimal inventory management
and replenishment becomes the primary objective for any
fashion brand.
1 If an item goes out of stock due to delivery issues, the
online purchase reminder function becomes a “table
stakes” feature for any retailer. It is a relatively
straightforward tool that safeguards retailers from lost
sales while also increasing customer engagement.
2 The survey indicates that stores struggle to convince
customers to purchase an alternative product if their
desired item is unavailable in the preferred color, cut,
or size. This represents a missed opportunity and
should be viewed as a chance to recommend alterna-
tives to close the sale.
Key requirements for technology:
Availability management
Ensure ERP platforms and order management systems are
in place and that they are fed with real-time data from
both the manufacturing and the sales platform to facilitate
precise inventory forecasting and real-time automated
replenishment. Furthermore, the basic reminder function-
ality should be connected to all relevant systems across all
product segments and categories to allow for automated
notification of customers when a product is back in stock.
BOSTON CONSULTING GROUP
3.4 High interest in high tech
The findings: The adoption of customer-facing technology
innovations in the fashion shopper journey is still nascent.
• Contactless in-store payments dominate with a 52 per-
cent adoption rate, marking the most embraced fash-
ion-related technology.
• Fashion subscriptions and sustainability tracking are
among the fashion-related technologies that shoppers
either have least interest in using or have not yet uti-
lized.
• 3D-printed clothing, closet-based recommendations, and
virtual dressing rooms lead in interest, yet lag in usage,
highlighting untapped potential for advanced tech in
fashion.
• Shoppers in Hungary, Italy, and Poland demonstrate
slightly above-average usage and interest in fashion tech-
nologies, while those in the Czech Republic, France, and
Germany score below average.
• The United States displays above-average usage and
interest in tech-related front-end fashion features,
although their interest in contactless in-store payment is
significantly lower than in all European countries.
Strategic implications: The overall adoption of most
high-tech-based fashion features remains low.
1 Further research is necessary to understand custom-
ers’ needs, gauge satisfaction rates, and identify the
reasons for low adoption rates.
2 Meanwhile, companies should prioritize features that
leverage their existing business and technology
strengths.
Key requirements for technology:
Integrated tech innovations
Incorporating right-to-win innovations presents an excel-
lent opportunity to differentiate oneself from competitors,
given the low adoption levels of high tech in fashion—so
far. It is crucial to invest in customer-facing technologies
that align with the business strategy and target audience
while supported by mature tech. The objective is to create
genuine added value that drives increased profit, rather
than spending money on mere gimmicks.
11
4 | Mission #2. Seamless Integration
Unify the Shopper Journey through Integrated Tech
In the ever-evolving landscape of fashion and luxury, the
convergence of online and in-store experiences has
become imperative. Today’s customers expect a seamless
journey across channels and along the majority of touch-
points. For fashion retailers striving to stay ahead, harness-
ing the power of an integrated technology stack is para-
mount. This chapter delves into the imperative for
omnichannel players to leverage their brick-and-mortar
presence in delivering a unified shopping experience. By
seamlessly integrating social, online, and in-store channels,
retailers can captivate customers, stimulate higher spend-
ing, and drive engagement.
12
BCG insight: Few players have achieved a seamless expe-
rience between channels along the entire customer jour-
ney, with most players focusing on dedicated touchpoints
(e.g., delivery options like BOPIS). The main challenges
players face is their legacy technology landscape, where
online technology has been built on top of store operations
software but is not integrated. Tracing customers and
products both online and offline (e.g., through RFID tags),
requires a significant investment in hardware (e.g., scan-
ners) as well as integrating core technology, like distributed
order management systems, to generate and process
structured data in a unified, channel-agnostic way.
FAST-MOVING TECH – FAST-PACED FASHION
4.1 Omnichannel dominates
The findings: Unlike most fashion providers, customers
are already deeply entrenched in the omnichannel experi-
ence: At 86 percent, the majority of respondents of the
survey buy online as well as offline.
• Shoppers younger than age 55 are true omnichannel
customers by purchasing around 90 percent both on-
and offline.
• Shoppers older than age 55 tend to mainly shop offline,
with 19 percent shopping exclusively in-store in compari-
son to 3 to 6 percent in the younger age brackets.
“They offer click and collect. If some-
thing I bought online doesn’t fit, I can
just leave it in the store.”
Man, 33, Switzerland
Strategic implications: The next generation of shoppers
is moving increasingly online.
1 However, the data reveals that very few customers
limit themselves to a single channel.
2 Traditional players with physical stores hold a distinct
omnichannel advantage over their online-only compet-
itors. Nevertheless, achieving success necessitates a
seamless integration of online and offline experiences.
Exhibit 6 | Brick-and-mortar advantage
Offline inspiration matters a lot, even to online shoppers
Shopping inspiration by shopping channel (in %)
87 82
54
In-store preference Omni preference
Offline inspiration Online inspiration
BOSTON CONSULTING GROUP
Key requirements for technology:
Unified systems and data
Legacy technology requires an integration/abstraction of
offline and online systems as well as aligned touchpoint
data. Governing and orchestrating processes across chan-
nels requires a high level of data quality and transparency.
This is often achieved through dedicated cross-channel
software platforms (e.g., distributed order management
system) or dedicated data platform capabilities.
4.2 Offline inspiration matters
The findings: Although offline spending diminishes in
proportion, it continues to serve as a vital touchpoint for
shoppers in search of inspiration (see Exhibit 6).
• Of all omnichannel shoppers, 82 percent prefer offline
inspiration versus 81 percent who choose online inspira-
tion touchpoints.
• Shoppers with a single shopping channel preference
tend to use the same channel mainly for inspiration (87
percent in-store customers use offline inspiration versus
54 percent online inspiration; 85 percent of online shop-
pers prefer online inspiration versus 67 percent offline
inspiration).
“Directly in the store where you can see
fashion in person and even try it on.”
Male, 76, Switzerland
85
81
67
Online preference
13
Strategic implications: In-store merchandising and
brand perception remain important as a valuable source of
inspiration, even among online shoppers.
1 Maximizing the advantage of omnichannel retailers
hinges on their ability to seamlessly convert inspiration
into sales as shoppers navigate between channels.
Key requirements for technology:
Turn inspiration into action
Activating an integrated stock across channels—offering
store stock online despite low volumes—is crucial to
increasing availability and meeting the customer at the
touchpoint of convenience at the right time. High levels of
store stock transparency, including at the highest maturity
location in store, are one of the biggest challenges for
fashion players and require significant investments in
track-and-trace capabilities. Although, activating dead stock
and targeted markdowns, which most companies excel at
online, considerably boost sales potential and turnaround
cycles, making investments more profitable.
4.3 Online buys more
The findings: Shoppers generally tend to purchase a lar­­ger
quantity of items when shopping online (see Exhibit 7).
• 68 percent of online shoppers buy more than one prod-
uct, compared to 49 percent among offline shoppers.
• 27 percent of omnichannel shoppers buy additional
products by online recommendation, compared to 23
percent buying additional products by sales agent rec-
ommendation.
Exhibit 7 | Turning inspiration into sales
Recommendations are highly relevant online and in-store
Shopping quantity by channel preference (in %)
12 15
12
27
X1.4
25
23
42
27
7 2 6 1
In-store preference Omni preference Online preference
14
• Online shoppers are also 1.4 times more likely to pur-
chase recommended products than in-store shoppers.
“It depends on the purchase; some-
times I seek consultation and buy more
than one product.”
Male, 44, Spain
Strategic implications: In-store shoppers typically pur-
chase fewer products, suggesting untapped potential for
in-store recommendations to drive growth.
1 The online user experience should be made appealing
to all types of shoppers via accessibility and comple-
mentary product recommendation boost.
2 Offline staff should be empowered with tools to drive
similar recommendation models in-store.
Key requirements for technology:
Achieve customer centricity online
To meet customers’ needs and propose meaningful recom-
mendations, qualified and identified website traffic is
required. Website performance and irrelevant initial content
are the main driver for customers bouncing early in the cus-
tomer journey. Providing recommendations that turn into
added sales requires customer centricity, generated through
integrated customer profiles across channels including
preferences, demographics as well as order history and
previous purchasing behavior. In-store this information can
13 All the products which
belong to one outfit (”Shop the look”)
One product and one or two more
that are recommended to me online
40
One product and one or two more that are
recommended to me instore by a sales agent
One product
15 Other, please specify
I prefer not to say
26
5 2
FAST-MOVING TECH – FAST-PACED FASHION
easily be retrieved per customer by scheduling appoint- Strategic implications: The rise of new online players,
ments. A majority of ultra-high-end players already do that, e.g., in UFF, brings new challengers that are specialized in
allowing for offline recommendations based on a e-commerce and elevate the shopping experience accord-
cross-channel profile of the customer. ing to user preferences.

4.4 Mass market losing online 1 To regain market share in the ever-changing market
dynamics, especially of the online world, mass market
players need to double down on the online user shop-
The findings: Mass market is still the most popular seg- ping experience.
ment, however, it is experiencing a decline in popularity
among online shoppers (see Exhibit 8).
2 As shoppers’ needs and table-stakes features are
continuously evolving, players need to ensure a highly
• Mass market has the lowest percentage of shoppers with adaptable front end for continuous changes.
an online preference (28 percent) and the second largest
offline preference (41 percent). Key requirements for technology:
Enhance online user experience
• Not surprisingly, UFF has the highest share of shoppers
with an online preference with close to 50 percent. It is essential that websites and applications facilitate
advanced personalization and customization of the online
• Across all shoppers and countries, mass market is still journey to cater to individual preferences by remaining
the preferred shopping segment with 50 percent (in-store modular and adaptable.
preference) and 40 percent (online preference). The dif-
ference of 10 percentage points can be largely explained
with UFF being the preferred segment of 11 percent of
online shoppers versus only 4 percent of offline shop-
pers, which equals a difference of almost 3 times.

Exhibit 8 | Mass market under pressure

Online shoppers are increasingly turning to other segments

Channel preference by fashion segment preference (in %)

In-store preference
22 18
32 Omni preference
33 37
41 46 Online preference

33
36
33 31
31
31 24

49
43 37
34 30 32
28

Premium luxury Affordable Mass market Secondhand Specialized Sustainable Ultra-fast

luxury apparel fashion fashion

BOSTON CONSULTING GROUP 15

5 | Mission #3. Fashion-Forward
Embrace Data to Elevate the Business to the Next Level
I
n today’s fashion landscape, digital incumbents are
reshaping the industry with high convenience, a broad
range of assortment, including rapid release cycles, and
new engagement models around customer-created con-
tent. This entails a fully data-driven business model, being
able to automate decisions and tasking as well as captur-
ing customer sentiments through social listening at broad
scale. Recognizing data as a foundational asset and shap-
ing the business model around the typical friction points in
the customer and product journey is key to unlocking new
16
potential—also tapping into the world of generative AI. Join
the exploration of how data-driven strategies can elevate
the business to the next level of success and innovation in
the ever-evolving fashion market.
BCG insight: Most fashion players neither achieve nor
focus on superior data capabilities as a business priority
around the five operational core data assets: customer,
product, pricing, promotions, and stock.
FAST-MOVING TECH – FAST-PACED FASHION
5.1 Recommendations drive revenue
The findings: Recommendations have a significant
impact on driving revenue, both in online and offline retail
fashion environments (see Exhibit 9).
• More than 70 percent of shoppers consistently accept
and make purchases based on recommendations across
all fashion categories.
• Online shoppers demonstrate a high receptiveness to
recommendations, with 71 percent indicating they some-
times (65 percent) or always (6 percent) purchase based
on recommendations.
• This figure is even higher for offline shoppers: 81 per-
cent of them make purchases based on recommenda-
tions from store consultants, comprising 77 percent who
sometimes do and 4 percent who always do.
“It depends on the purchase; some-
times I see consultation and buy more
than one product.”
Male, 44, Spain
Strategic implications: Product recommendations can
be positioned from several angles. Complementary and
substitutional recommendations can be orchestrated
based on order history and behavioral analysis. Yet the
power of the crowd—and therefore user generated con-
tent, reviews and style guides—is gaining significant trac-
tion and increases the time customers spend on websites.
1 Recommendations exhibit exceptional efficacy, gaining
more traction through user-generated content.

• Notably, the influence of recommendations is most pro-
nounced in the ultra-high-end segment, with a quarter of
online shoppers and 17 percent of offline customers in
this segment reporting that they always make purchases
based on recommendations.
Key requirements for technology:
Captivate the customer
Make content relevant for the customer by engaging peers
from the same segment. Providing a platform to orches-
trate and capture data points (e.g., reviews, other users
bought) is a critical enabler to driving engagement and
being able to monetize it.

Exhibit 9 | Recommendations are powerful

Shoppers tend to follow them

Impact of in-store and online recommendations by fashion category (in %)

Online recommendations In-store recommendations

4 6 2 4
Always accept recommendations
17
25 Sometimes accept recommendations
Never accept recommendations

66 I do not know / Prefer not to say

65 78 77
71
64

27 25
17 16
9 2 4 4 10 1 3 3
Ultra High-End Mass Market All shoppers Ultra High-End Mass Market All shoppers

BOSTON CONSULTING GROUP 17

5.2 Content expectations are evolving 5.3 Experience matters

The findings: In response to the comprehensive product The findings: Loyalty to websites and apps diminishes
information provided by many online-only players, cus- with age, underlining the importance of delivering a per-
tomer expectations regarding online product content are sonalized and superior user experience to maintain
evolving. engagement.

• Younger shoppers, in particular, are increasingly seeking • Shoppers aged 55 and above are notably 20 percentage
product videos and in-depth information (e.g., sustain- points less likely to visit the same websites or apps regu-
ability) larly than younger shoppers.

• Additionally, they prioritize rating and reviews, with more • In contrast, a vast majority (86 percent) of individuals
than 40 percent of younger shoppers considering them aged 18 to 34 demonstrate a propensity for regularly
helpful. ­visiting the same shopping app or website.

• While emerging tech-focused features such as virtual

reality fitting rooms or VR try-on options are still in their “It is intuitive and even fun to shop
infancy, usage already ranges from 6 to 18 percent.
there.”
Strategic implications: Fundamental pillars of qualita-
tive product information remain vital across all shopper Male, 38, Switzerland
demographics, encompassing descriptions, size guides,
ratings, and high-quality photos.
Strategic implications: While loyalty programs can be a

1 Customers are, however, more demanding when it

comes to the quantity and quality of data.
means of turning this around, their relevance as a factor
when shopping online is limited with young shoppers.
Compared to other factors such as price/value, shipping,

2 Notably, younger shoppers exhibit a propensity to

embrace new technologies, particularly video content,
and variety, only 13% of women and 16% of men in this
demographic select loyalty among their top 3 relevant
likely attributed to their heightened consumption of factors.
social video platforms.
Key requirements for technology:
Key requirements for technology: Personalized experience
Innovative product content
Integrate data across channels to ensure loyalty offerings
Harnessing the capabilities of generative artificial intelli- and regular engagement pushes can be introduced across
gence (Gen AI) for the creation of content, information, the various channel touchpoints (e.g., email, SMS, store).
and clusters within tools such as product information
management (PIM) and digital asset management (DAM).
It is imperative to explore novel and engaging methods of
showcasing products, including customized and personal-
ized content generation tailored to individual shoppers.

18 FAST-MOVING TECH – FAST-PACED FASHION

5.4 Mixed willingness to pay for sustainability
The findings: A significant portion of shoppers expresses
a willingness to pay more for sustainable products, though
attitudes vary between the main preferred shopping chan-
nels.
• Overall, 40 percent of shoppers state their willingness to
pay a premium for sustainability. Among them, 32 per-
cent consider a premium of up to ten percent accept-
able, while eight percent are willing to pay more than 10
percent.
• Younger shoppers and ultra-high-end shoppers are more
than 17 percentage points more willing to pay a pre-
mium than the average shopper.
• Furthermore, one in two exclusively online customers
demonstrate a higher willingness to pay a sustainability
premium, more than double that of in-store shoppers.
Strategic implications: Based on these findings, it is
evident that sustainable sourcing is imperative to meet
customer demands for sustainable products and capitalize
on the sustainability premium.
Exhibit 10 | Sustainability matters
Especially online shoppers say they are willing to pay a sustainability premium
Willingness to pay a sustainability premium (in %)
4 8
18
17 27
30
42
38
31
31 25
19
6 3 8 3
Exclusively in-store Exclusively online Ultra High-End
BOSTON CONSULTING GROUP
1 However, certain results present contradictions. For
example, 33 percent of shoppers express concern
about sustainability while having purchased or being
willing to purchase ultra-fast fashion. Therefore, it is
recommended to gather additional data to ascertain
the true level of importance placed on sustainability
by a brand’s target audience.
2 Additionally, targeted communication of sustainable
practices is essential for building brand equity and
fostering trust.
Key requirements for technology:
Sustainability traceability
Efficient and accurate traceability along the supply chain is
essential. The data is required to target effective communi-
cation of a brand’s sustainability efforts as well as meet
ESG reporting and emerging regulation requirements such
as the EU supply chain regulation standards. Furthermore,
by creating data transparency on the supply chain, players
can optimize their replenishment management to reduce
waste and dead stock and, consequently, further improve
sustainability.
14 Willing to pay +10% or more
Willing to pay up to 10%
32 Expects price parity between
sutainable and traditional products
43 Prefers lowest price, regardless of
transparency on sustainability
18
I do not know / Prefer not to say
11
38
30
3 4
18-34 All Shoppers
19
6. Mission #1 to #3
Unleashing Game-Changing Capabilities in Fashion

T
he preceding pages have elucidated the significant
shifting demands facing fashion and luxury players. Mission Embrace data to elevate the
Through strategic prioritization of technologies, they
can achieve the following objectives: #3 business to the next level

Mission Unify the shopper journey

#2 with integrated tech

Mission Deliver lean core platforms

#1 to maximize business agility

20 FAST-MOVING TECH – FAST-PACED FASHION

6.1 Modern core systems play a pivotal role

CIO mission #1: The rise of ultra-fast fashion players, Potential challenges to watch out
the emphasis on price as a deciding factor, the high inter-
est in high-tech tools among customers, and the reality for:
that out-of-stock equals out-of-revenue have all under-
scored the need for the next gen of core systems. These • High cost of transformation
systems are essential for making businesses agile and
flexible, enabling volatile demand. • Fragmented supply chains and
Enterprise resource planning (ERP) systems, as a stock keeping units
cornerstone, should be robust, highly standardized, modu-
lar, and highly flexible, thus saving cost and enabling core • Integration with other applica-
business transactions. Companies must strategically
decide which functionalities to integrate into their ERP tions
systems versus their broader digital ecosystem, distinguish-
ing between essential capabilities for competitive advan- • Large deviations from standard
tage (right-to-win) and those necessary for basic market
participation (right-to-play).

Key characteristics for core systems, especially ERP, include

the following: No-miss success factors from BCG client experience:

• Integration ability of lean core in ecosystems
• Modular composability of applications throughout the
system
• Real-time data exposure and access
• High speed to implement / process template-based
approaches for core processes (levels 1–3)
• Clear value generation focus of overall ecosystem as
well as added and built-in functionalities
• Scalability to manage seasonal demand fluctuations
• Readiness for business model changes at low cost,
without long change lead times
• Automation of design-to-store workflow for acceler-
ated time-to-market
• Precise inventory tracking enabling seamless stock
sharing across online and in-store channels
• Establishing strategic value drivers that articulate
the commercial rationale for technology investment,
aligned by leadership upfront
• Defining a standardization strategy and trade-offs
under the guidance of senior leaders to serve as a guid-
ing principle
• Planning business and ERP transformation concur-
rently to facilitate robust process redesign and harmoni-
zation
• Implementing an integrated roadmap planning
approach to proactively manage interdependencies,
risks, and capacity constraints
• Establishing the right governance structure with
strong execution ability and empowered decision-mak-
ing bodies that bridge processes and geographies, ensur-
ing alignment and accountability throughout the trans-
formation journey

• Process harmonization to overcome historic data silos

and operational fragmentation

• Easy system maintainability, e.g., to take advantages

of updates

BOSTON CONSULTING GROUP 21

6.2 Gain momentum with a state-of-the-art POS
system and an integrated e-commerce platform
CIO mission #2:The immense importance of a unified
customer journey and excellence in the online experience
is highlighted by users’ preference for a broad range of
channels, shoppers’ search for inspiration in-store, and the
steady increase in online shopping. Consequently, a mod-
ern composable POS system and an integrated e-com-
merce platform are pivotal for market success.
A modular point of sales (POS) system should allow for
various checkout modes to customers (e.g., self-checkout,
scan and go) while remaining seamless in the user experi-
ence (e.g., avoid having to remove security hard tags). The
largest changes are to come in the shift from E2E POS
vendor offerings to a decomposed microservice setup
offering flexibility for hardware and software integration
while fulfilling fiscalization needs and offline scenarios:
• High checkout throughput for expedited processing,
reducing queues and wait times
• Loyalty programs and personalized offers available
and integrated across all channels during the purchase
process
• Trend analytics at point of sale to capture customer
data, facilitating demand forecast and tailored future col-
lections.
• Channel-agnostic journey continuity, enabling seam-
less transitions between channels while preserving the
commerce workflow, such as “buy online, pick up in
store” (BOPIS), or endless aisle.
Potential challenges to watch out
for:
• Business continuity risk
• Limited POS flexibility
• Customer churn rate
• Channel-specific tech develop-
ment
22
Critical success factors derived from BCG client experience:
• Implementation of a vendor-led cloud-native, scal-
able POS system with offline capabilities to ensure sta-
bility
• Flexibility and cross-channel functionality embed-
ded within the POS implementation, accommodating
various use cases and checkout modes
• Seamless integration of checkout processes across
all modes, delivering a frictionless customer experience
• Adoption of future-proof architecture, facilitating
easy integration of services across channels and modes
An integrated e-commerce platform enables the utili-
zation of unified capabilities to enhance the customer
offering and optimize fulfillment processes leveraging
existing e-commerce infrastructure.
• Best-of-breed microservices cater to different types of
customer needs if combined with a flexible commerce
core.
• API-driven communication benefits customers with
a true omnichannel feeling between external versus
online/offline store communication.
• Cloud-native systems and applications allow for a
scalable infrastructure in terms of performance growth
and online security.
• Headless architecture facilitates agile adaption of
experiences agnostic of device channels (e.g., desktop,
mobile, digital mirror).
Potential challenges to watch out
for:
• Fragmented and siloed customer
experiences
• Inflexible legacy systems
• Inefficient operational processes
FAST-MOVING TECH – FAST-PACED FASHION
No-miss success factors from BCG client experience:
• A unified brand experience that surpasses individual
channels, fostering a holistic customer journey
• Operational unity is streamlined by synchronizing
inventory, sales, and logistics data
• Flexibility in orchestration is attained through
resource and process organization, resulting in
enhanced customer service
• Core commodity processes and essential procedures
are harmonized and standardized, leading to cost reduc-
tion and increased efficiency
• Innovation-ready scalability enables rapid adaptation
to new technologies and market trends
6.3 Secure competitive advantage with a
customer data platform and a recommendation
engine
CIO mission #3: As recommendations drive sales, the
bar for online product presentations is raised, emphasizing
the importance of the customer experience. Moreover, with
sustainability gaining traction among shoppers, the
demand for personalized experiences increases. Meeting
these expectations depends heavily on two essential tech-
nologies: a customer data platform (CDP) and a recom-
mendation engine. These tools are indispensable for col-
lecting extensive customer insights and delivering tailored
offers, thereby enhancing engagement and increasing
average spending per customer.
A customer data platform (CDP) serves as the corner-
stone for data unification, collecting information from
diverse sources and centralizing them. Key considerations
for harnessing this transformative capability in the fashion
industry include the following:
• Unified customer view: Consolidating data from vari-
ous sources to create a unified customer profile
• Data enrichment: Enhancing customer profiles
through data appending and identity matching technol-
ogies
• Data quality and management: Cleansing, unifying,
and deduplicating customer data to enhance reliability
BOSTON CONSULTING GROUP
• Enhanced collaboration: Breaking down departmental
silos and fostering collaboration
• Employee satisfaction: Providing employees with mod-
ern technology for empowerment and task progression
Potential challenges to watch out
for:
• Legacy system capability
• Data integration complexity
• Data quality inconsistency
No-miss success factors from BCG client experience:
• Adopting an API-first approach to ensure seamless
integration and scalability of the data ecosystem
• Implementing robust data governance practices to
maintain data integrity, relevance, and quality
• Embracing a cloud-based approach to enhance reli-
ability and cost-efficiency in managing the CDP’s infra-
structure
• Establishing a robust data architecture capable of
handling high volumes of diverse data types and struc-
tures
• Providing an intuitive user interface and experi-
ence for nontechnical users to access and utilize CDP
functionalities
Based on the CDP data, personalization engines can be
developed, designed to customize digital user experiences
with product recommendations, dynamic content and user
interface personalization, and targeted advertising. This
can happen in real time, while continuously ”learning”
from each user interaction. Specifically, a recommendation
engine enables personalized customer experiences
through advanced analytics and artificial intelligence,
leveraging customer data to generate actionable insights
and deliver tailored product recommendations.
23
A recommendation engine should consider the follow-
ing topics:
• Automated segment discovery to uncover customer
profiles for targeted marketing campaigns
This report underscores the urgent need for fashion com-
panies to invest in technology to keep pace with market
demands and propel their business on a trajectory of
growth. The following steps are essential to initiating trans-
formation as early as tomorrow:

• Data-driven decision-making, leveraging CDP data to • Adopt a “mental flip” approach, prioritizing data and
analyze, understand, and predict customer behavior business use cases over technological systems.

• Consistent omnichannel marketing, ensuring unified • Decouple the technological transformation from the crit-
messaging across all channels using CDP data ical path of the overall business digital transformation.

• Real-time engagement, enabling immediate • Free your data from outdated and inflexible legacy core
responses to customer interactions with updated data systems.

• Predictive insights, applying artificial intelligence to • Develop intelligent business products centered around
CDP data to forecast customer needs and personalize crucial business domains that empower frontline work-
future interactions ers and management to make informed decisions.

• Expand your data layer and cultivate skills in data and

Potential challenges to watch out technology engineering.

for:
• Data quality and relevance
• Limited in-store application
• Algorithm bias and fairness

No-miss success factors from BCG client experience:

• Seamless customer journey mapping across all

touchpoints to enhance engagement and personaliza-
tion

• Adaptability in architecture to integrate with evolving

data sources and maintain market relevance

• Flexible customer data aggregation that supports

diverse marketing channels and business needs

• Intelligent recommendation engine integration to

enable dynamic, personalized content and product sug-
gestions

• Continuous machine learning for enhanced recom-

mendations and ongoing relevance

• Offline recommendation supported by omnichannel

profiles of customers

24 FAST-MOVING TECH – FAST-PACED FASHION

7. FashionTech Interviews
7.1 Cristiano Agostini, Group CIO, Prada Group
Q: What keeps you awake at night?
• The easy answer would be AI. But honestly, this does not
really keep me awake at night. What really matters is
to have the foundation right, continuously building the
basics of a set of components from which to build the
rest. The two main areas that we focus on are improving
tech infrastructure and better addressing customers.
• We are in the process of transforming key elements of
our tech infrastructure, such as ERP, PLM, and CRM, to
support our growth. And of course, not just in the digital
but also in the physical world.
Q: Misson #1: How do you approach lean core
platforms?
• I push my teams to think about ERP as composable sys-
tems. While the ERP is typically a monolithic engine that
ensures accountability, it also demands significant effort
for integration and interaction with the IT.
• Our view of ERP is to have some standard processes
in the core that are easily repeatable. Surrounding this
ERP core, to have flexible components to adapt easily to
changing environments.
Q: Mission #2: How do you define a unified
shopping experience?
• From a tech perspective: unification integrates all exist-
ing channels into a single full-omni architecture with
composable components that are common to every
channel.
• This includes payment processing, product information
management, and CRM, forming a unified set of capa-
bilities for all channels, such as to enable mobile check-
out in a store. And having a common view of all possible
data. Our goal is to provide every Prada customer with
the same customer experience independent of which
channel they use.
• In the physical space, we have been working on improv-
ing our clienteling and using digital capabilities, such as
to calculate conversion, do A/B testing, and simultane-
ously keep the human touch as much as possible. The
trick is to also use the technology in the physical space
but still keep the customers’ focus on the product and
sales assistants.
BOSTON CONSULTING GROUP
Q: Mission #3: What are some of your chal-
lenges in leveraging data to make business
decisions?
• Prada has always been very data-driven. The challenge is
not to make people in the business aware that decisions
can be supported by data. It is to transition from tradi-
tional data management to handling the vast new digital
data we see today.
• Ten years ago, the issue was ensuring a single source of
truth for everyone, such as when marketing produced
different forecasts than finance. Today, the challenge is
maximizing the use of the vast amounts of data we col-
lect from various sources.
• In some areas, like the front end and CRM, this is more
straightforward. But in others, like supply chain and
planning, it can be more challenging.
• For example, consider stock management: We have the
current stock in the order management system, account-
ing stock availability in the ERP system, and the pro-
jected stock in the planning system. Each data source
serves a different purpose: understanding working cap-
ital is a different question than product availability in
e-commerce. The “truth” here depends very much on
the purpose.
Q: In 5 years, where will the true competitive
advantage in leveraging data be?
• Today, a lot in this space is a true commodity: Algo-
rithms and tech are basically available as third-party
solutions to anyone. And data is already widely available.
If everyone uses the same third-party recommendation
engines and solutions, the key question is what will set
us apart—what is then the differentiating factor for us?
• Our unique advantage will be our own collected data
and the custom algorithms we can develop from it. We
need to treat data as a real differentiating factor. Treat-
ing data and algorithms as we treat the bags: There are
many bags, but Prada bags are different!
25
7.2 Joel Ankarberg, Senior Industry Expert,
CxO for Tech & Data in Fashion & Luxury

Q: What keeps you awake at night?

• Creating clarity and alignment on what drives the most
consumer/customer and business value and outcome
(i.e., OKRs), and move technology and data as a part of
that. Today, every company is inherently a tech and data
company, or relies heavily on data and technology for
success. Thus, it is required to elevate CxOs’ understand-
ing of consumer/business value that tech and data can
generate.
• Going from there, it is possible to lay out a clear plan • While digital can enhance these experiences, it cannot
with concrete steps to realize these benefits. But value always replace the value of in-person interactions with
comes first. experts and relationship building.
• Achieving this requires business and tech to collaborate
closely, at the same table, toward common objectives
Q: Mission #3: Where do you see companies
and outcomes. struggle the most in the transition to being a
data-driven company?
Q: Mission #1: Where do you see the most cru- • The main challenge is changing mindsets and behaviors
cial tech priorities around lean core platforms? to use data effectively. Mindset steers behavior, behavior
steers actions, and actions lead to results.
• The most important aspect is to standardize enterprise
applications and lift the data from the ERP system, for • I have seen many situations where people often value
instance, even if it’s challenging with the forces of lock-in experience and gut feelings over data, especially if they
effects. are coming from an analog background. Even if experi-
ence has value, we need to lead with data. I’m quite sure
• In determining the key value drivers to identify which
many technologies lead to similar experiences for lead-
components should be integrated into the ERP system
ers with comments such as, “I can’t believe that. Let’s
(and other core applications) and which should be man-
continue the old way.” Even if presented with very clear
aged outside.
data, no matter whether it is consumer data, product
• Where we solved this well: lifting the data and leveraging or inventory data, or consumer and business value. The
the ERP system as a business process executor for han- tech is not the main challenge.
dling routine, standardized business transactions effi-
• To shift this mindset, people need to see multiple suc-
ciently.
cessful examples of data-driven decisions—over and
over again.
Q: Mission #2: What is the relevance of a uni-
fied shopping experience? Q: Mission #3: What impact do you see Gen AI
• We sometimes forget the uniqueness of customizing the having on data and data-driven decision-making?
experience to individuals based on data.
• Overall, Gen AI, together with other AI technologies, has
• Companies need to meet customers where they spend significant potential in value creation, democratizing cre-
their time. This may also be a generational topic: Where ativity, and much, much more.
do you prefer to meet your brands and friends? Younger
• On a micro level, Gen AI has many use cases to derive
customers may prefer digital platforms like TikTok or
value, i.e., in consumer service, but also in improving
Snapchat for product and relationship-building experi-
data quality, labeling, and structuring.
ences.
• On a macro level, Gen AI doesn’t change the fundamen-
• Older customers often value physical experiences, where
tal need for good data governance, quality, ownership,
offline players can offer unique, in-person interactions.
and usability. One needs to have a data foundation in
No matter whether there is a generational topic or dif-
place to derive the potential of value, no matter whether
ferent customer segments, data will let you know. That’s
it is Gen AI or another AI technology.
why it’s important to be data-driven all the way through.
• And the winners in this will have their data foundation
• And there are experiences that need to happen in-real
right, focusing on use cases that derive the most busi-
life. Consumers within specialty needs categories are
ness value. Otherwise, one won’t be able to extract the
more likely to need expert advice. For performance run-
potential.
ning, as an example, there is value in physical expert
advice, a running analysis, and potentially even trying
out the shoes at a local running club.

26 FAST-MOVING TECH – FAST-PACED FASHION

7.3 Jan Buchartz, Vice President Global Digital
Strategy & European Digital Solutions, PUMA
Group
Q: What keeps you awake at night?
• Nothing really, I fall asleep easily.
Q: Mission #1: Where do you see your most cru-
cial tech priorities and challenges in today’s
dynamic market situation—especially when it
comes to state-of-the-art core platforms such as
ERP?
• Our focus is on two main areas that determine our tech
priorities in this area: scalability and modularity.
• We have invested time and effort into building a (whole-
sale-focused) solution suite consisting of a lean ERP
core template, a suite of integrated core (digital) ecosys-
tems, and BI solutions.
• We are now having regional tech hubs and teams at our
subsidiaries across the world roll out the solution suite.
• For us, it is important to maintain key synergies and
learnings, including in our decentral rollout approach,
and become more efficient in the individual rollouts.
Q: Mission #1: Which tech capabilities related
to core platforms are most relevant for compet-
itive advantage?
• I’m convinced that a modular architecture is among the
main sources of competitive advantages in this area.
• With rapid technology changes, the ability to integrate
solutions into your system landscape and exchange core
components without a major redesign of the architec-
ture becomes key.
• If one discipline should be highlighted within a scalable
modular architecture, it’s integration: moving away from
solution-specific, highly customized (legacy) interfaces to­­
ward a more standardized integration (e.g., through APIs).
Q: Mission #2: How do you define a unified
shopping experience?
• A unified shopping experience can mean different
things: all the way from a consistent brand appearance
and look and feel across sales channels to a full, seam-
less integration of channels, such as through BOPIS or
BORIS.
• The key is to create a unified experience while minimiz-
ing the integration effort and complexities. There are
ways to create the feeling of a seamless shopping experi-
ence across channels without requiring an actual inte-
gration of back-end processes. For example, to avoid the
potentially cumbersome requirements (legal, technical,
financial, etc.) to manage stock transfers between differ-
ent entities and channels.
BOSTON CONSULTING GROUP
Q: Mission #2: Where do you see opportuni-
ties for established players with strong offline
presence to gain a competitive advantage over
online competitors?
• It can be simple things that help make a difference and
connect online and offline. One thing we have done is
indicate the availability of the product you are looking
at in our online shop in the nearest store. This can help
create or channel traffic to offline stores. For instance, for
higher priced products like a €200+ football boot, there
might still be a barrier for people to buy online.
Q: Mission #3: How would you describe your
transition to a data-driven enterprise with ubiq-
uitous data?
• Our journey started a few years ago with the implemen-
tation of a single data backbone for all our main data
domains—our PUMA Data Model.
• The current focus is on concluding the build of a pre-
dominantly cloud-based infrastructure—for D2C we are
working with Google and their cloud solutions, specifi-
cally to power our e-commerce needs, while the majority
of our infrastructure runs on Microsoft and Azure-based
solutions.
• We also increasingly use BI-based data provisioning
instead of building actual purpose-specific interfaces.
• Overall, I would argue, our industry is still somewhat lag-
ging behind others. We do not fully leverage the poten-
tial of the data available. But it is changing.
Q: Mission #3: Which tech capabilities are most
crucial in the transition to a data-driven enter-
prise, and where do you see the main challenges?
• We are in constant dialogue with other companies
to learn from each other. Everybody has a specific
approach, but there are some general learnings. For
example, best practices in org setup/RACI, tool combina-
tions, and other areas.
• But the one challenge that supersedes most others is
rigid data quality management—both in terms of con-
sistent data architecture and day-to-day quality control.
Structural mistakes in setting up your data architecture
are very hard to fix later on.
27
Q: Mission #3: How do you see emerging tech-
nologies having an impact on your data strategy
(including AI)?
• Gen AI will have a major impact on data management
and specifically on advanced analytics. Data preparation,
cleansing, and provisioning for analysis, AI, and ML pur-
poses are a major effort driver. Today, that involves highly
skilled personnel, such as data scientists.
• Gen AI will eventually be able to perform most of these
tasks as a one-stop-shop solution from raw data to anal-
ysis and solution design. This will fundamentally change
data management.

28 FAST-MOVING TECH – FAST-PACED FASHION

BOSTON CONSULTING GROUP 29
About the Authors

Christian Kirschniak, Managing Director and Partner, Anton Haberler-Koenig, Project Leader, BCG Vienna.
BCG Stuttgart. You may contact him at You may contact him at
Kirschniak.Christian@bcg.com. Haberler-Koenig.Anton@bcg.com

Sebastian Boger, Managing Director and Partner, BCG Florian Burger, Principal, BCG Munich.
Munich. You may contact him at You may contact him at
Boger.Sebastian@bcg.com Burger.Florian@bcg.com

Stefan Trifonov, Partner and Associate Director, DDP in Felix Graeber, Project Leader, BCG Munich.
Fashion & Retail, BCG Munich. You may contact him at You may contact him at
Trifonov.Stefan@bcg.com Graeber.Felix@bcg.com

For Further Contact Acknowledgments

If you would like to discuss this report, please contact the Agnieszka Szer Andrzejczak, Julia Becker, Rachel Breslin,
authors. Laura Diessl, Saskia Gerrits, Sherwin Husseinifard, Melanie
Stefandl, Tingting Tang, Lydia Tittes, Stella Tsoutzidou,
Andrea Vergeiner

30 FAST-MOVING TECH – FAST-PACED FASHION


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