Market Overview

Retail, Footwear and Apparel Have Yet to Unlock the Value of Digital in Product Development, According to Kalypso Research

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Third annual survey reveals advances in 3D digital product creation
and advanced analytics but slow overall progress

The importance and value of digital technologies in retail, footwear and
apparel product development continue to grow year over year, but few
companies have figured out how to unlock its true value, according to
new survey results released by consulting firm Kalypso.

The annual research is produced in collaboration with PI
Apparel
and Indiana
University Kelley School of Business Center for Education and Research
in Retail
to report on the adoption of digital technologies and
product development practices in the retail, footwear and apparel
industry. Executives from over 40 companies across North America, Europe
and Asia participated in the third annual survey.

Despite slow progress in the digital transformation of product
development, retailers continue to make advancements in the areas of 3D
digital product creation and advanced analytics. Consistent with past
research, 3D product design and voice of customer remain the starting
points for 3D digital product creation and advanced analytics,
respectively.

Respondents once again rate 3D design tools highest in business value,
importance and current spend, though this year's research indicates an
uptick in value and planned investment in capabilities and technologies
beyond 3D product design, including digital sampling, virtual style-out
and assortment visualization.

Virtual reality (VR) and augmented (AR) remain laggard technologies with
over 50 percent of respondents not knowing when they will invest.
Technologies to watch – rated as important but not yet attempted –
include virtual showrooms, material visual database and 3D integration
to product lifecycle management (PLM)/master data management (MDM).

While the vast majority of respondents believe it's important to
centralize digital assets (86 percent) and allow global access (95
percent), only 8 percent have connected their digital processes and
tools across the product lifecycle. Respondents are divided on whether
they have the right infrastructure in place to achieve a connected
digital platform that unlocks the value of digital technologies and
assets.

This year, funding as a top barrier for digital technologies has been
replaced by process and culture change. Talent and staffing digital
programs continue to be a challenge however, with 77 percent of
respondents indicating that new roles are required to close significant
gaps between current capabilities and future needs.

For more key insights download the research report summary at http://kalypso.com/retail2018.

ABOUT KALYPSO

Kalypso is a global consulting firm helping clients innovate in a
digital world. We provide companies with comprehensive strategy,
operations, digital and technology services to increase revenue, improve
profitability and differentiate in the marketplace. For more information
visit http://kalypso.com.

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