It may not come as a surprise that many fashion companies have focussed heavily on the front-end of their e-commerce operations; the quality of consumer-facing interfaces is essential when it comes to branding, aesthetics, and UX – all extremely important when your consumers associate your organisation with creativity, style, and chic.

But are fashion companies doing enough when it comes to their back-end systems?

Although the 1990s saw fashion and retail companies embrace PLM (Product Lifecycle Management) and ERP (Enterprise Resource Planning) software, very few companies (with some noticeable recent exceptions, including Burberry, Kate Spade, Levi’s, and ASOS) have adopted the more modern and powerful solutions that have become available since.

And this could be a problem.

Fashion moves quicker today than ever before, so it is essential that an organisation’s PLM and ERP software is able to share information with new internal and external technologies, such as real-time data collection solutions, like Editd, or PLP (Product Launch Planning) systems, like Fashion GPS, that allow an organisation to see and act on relevant feedback instantly.  

So what should fashion companies do? Well, two things.

1. Update existing solutions. Legacy software needs to be flexible, scalable, and robust in order to perform well moving forward. Though this process is time-consuming and costly, it is absolutely necessary if an organisation wants to make the most of current and future tech developments that may be incompatible with older solutions.
2. Invest in progressive new technology. This is crucial for any organisation seeking to stay dynamic and competitive. And whether an organisation chooses to invest in independent start-ups, or internal business incubators, the desired output is the same: additional back-end functionalities that make the most of today’s technology.  

ASOS, for example, are doing both of these things incredibly well.

The company has recently announced plans to invest £75 million in back-end technologies, which will take profit before tax down 10 percent to £18 million.

Moreover, as Daniel Bobroff, Investment Director at ASOS, told us at our recent breakfast discussion ASOS is also actively looking to promote leaner, sturdier business models by investing in and building relationships with start-ups that offer something promising.

Do you think fashion companies are doing enough to keep their back-end systems effective?

And are there any new solutions that are exciting you?

Email me your thoughts.