Former Gucci Board Member and founder of the Fashion Technology Accelerator in Silicon Valley Enrico Beltramini believes technology will replace products, brands and financial strategies as the key source of value creation for fashion companies.
In an Op-Ed Piece
Successful fashion companies like Nordstrom, Neiman Marcus and Burberry can now process gigantic flows of information and operate their businesses based upon software-driven intelligence. They base their businesses on the economic exploitation of data rather than capital, which makes them more effective. Indeed, equity value is flowing towards software technology and the ability of companies to organize and exploit granular information to drive intelligent decision-making through things like collaborative filtering and predictive analytics. Companies that embrace software enjoy a market cap several times those of fashion companies which are brand- or product-driven. Case in point: Zalando, the European online retailer founded in 2008, has a valuation of $5 billion, greater than the valuations of Versace and Moncler combined.
But to be clear, there is no contradiction between the survival of traditional sales channels, like physical stores, and the emergence of software-driven decision-making. In fact, technology might just be what keeps traditional stores alive.
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