A New Perspective on the Textile and Apparel Industry in the Digital Transformation Era

Abstract

The textile and apparel (fashion) industry has been influenced by developments in societal socio-cultural and economic structures. Due to a change in people’s preferences from economic functionality to supra-functionality beyond economic value, the fashion industry is at the forefront of digitalization. The growing digitalization in the fashion industry corresponds to digital fashion, which can satisfy the rapid shift in consumers’ preferences. This paper explores the evolving con-cept of innovations in digital fashion in the textile and apparel industry. Specifically, it centers on the evaluation of Amazon’s digital fashion initiatives, which have made the platform the United States’ top fashion retailer. An analysis of the business model of Amazon’s digital fashion business showed that with the advancements in artificial intelligence (AI) powered by advanced Amazon Web Services (AWS), Amazon has introduced novel digital solutions for the fashion industry, such as advanced digital fashions (ADFs), on-demand manufacturing, neo-luxury, and, ultimately, cloud-based digital fashion platforms, that is, a supra-omnichannel, where all stakeholders are integrated, and their activities are visible in real time. This can be attributed to the learning orchestration externality strategy. This study concludes that with the advancement of digital innovations, Amazon has fused a self-propagating function that advances digital solutions. This study shows that Amazon is the largest R&D company. Its R&D process is based on users’ knowledge gained by their participation through AWS-driven ICT tools. This promotes a culture of experimentation in the development of user-driven innovations. Such innovations have further advanced the functionality of AWS in data analysis and business solutions. This dynamism promotes the development of soft innovation resources and revenue streams. These endeavors are demonstrated in a model, and their reliability is validated through an empirical analysis focused on the emergence of ADF solutions. Therefore, based on an analysis of the development trajectories of Amazon’s digital fashion technologies, such as ADFs, on-demand manufacturing, and neo-luxury, insightful suggestions and a framework for solutions beyond e-commerce are provided.