The fashion industry is one of the fastest-growing technology markets, with fashion companies projected to invest about 3 to 3.5% of their revenues in technology by 2023. The Association of Southeast Asian Nations (ASEAN) region, home to over 680 million people, is experiencing a dynamic shift in how fashion startups leverage technological advancements to reshape the industry.
From personalised experiences driven by artificial intelligence to sustainable practices and virtual fitting rooms, Southeast Asian fashion tech startups are leading a revolution in redefining how we engage with style.
Overview of the fashion tech landscape in Southeast Asia
The region’s fashion startup scene is thriving due to various influential factors. The region’s growing middle class, driven by economic advancement and increased disposable incomes, has generated a strong desire for the latest fashions. This demand has transformed the market into fertile ground for the industry’s startups that aim to introduce creative solutions tailored to this expanding group of consumers.
Innovation and super apps in Southeast Asia: Implications for the tech sector and beyond
One key contributor to the rise of the middle class in Southeast Asia is the rapid digitisation of the region. More than 350 million people in Southeast Asia use the internet, with most accessing it mainly through smartphones. The increased digital options empower consumers with a wide array of choices, enabling them to access information, products, and services anytime and anywhere.
The growing demand for fashion-related products and services in Southeast Asia has also induced shifts in the consumer behaviour and preferences of the middle class. The middle class is not only expanding in size, but also its aspirations, and expectations are also growing exponentially. They actively seek products and services that resonate with their identity, values, and lifestyle. Additionally, they exhibit heightened awareness of the societal and environmental consequences of their consumption choices, leading them to seek more sustainable and ethical alternatives.
A notable illustration of a successful fashion tech startup is “Girlsourced.” The mobile app platform offers on-demand styling services for women and establishes a fashion community platform for sourcing style preferences through votes. This pioneering app, unique in the region, addresses a market gap. Girlsourced encourages users to curate styles using both their existing wardrobe and items from retailers, fostering a sustainable mindset by promoting mindful purchasing.
Trends transforming fashion tech startups in Southeast Asia
As with all sectors, the fashion tech landscape reacts to economic and societal trends. Here are some of the leading factors influencing the development of fashion technology in the region:
The rise of social commerce
The purchasing behaviour of Southeast Asian consumers has shifted, with a study revealing that social interactions are likely to directly impact the region’s approximately USD 42 billion in eCommerce sales. This surge in social commerce has opened up a fresh avenue for fashion startups to interact with consumers, delivering a personalised shopping experience.
For example, platforms like TikTok have transcended their earlier roles of mere connection and social interaction and have moved into product discovery. Consumers can now seamlessly engage with sellers through live-streaming features, culminating in quick and convenient purchases. This buying through social media trend not only facilitates direct sales but also fosters the creation of user-generated content, effectively transforming customers into enthusiastic brand advocates.
Consistent omnichannel experiences
Omnichannel experiences have gained substantial momentum over the past few decades. The concept emphasises providing customers with a seamless shopping journey across various platforms, encompassing physical outlets, online portals, and mobile apps. Many companies are now incorporating cloud-based technology to establish pertinent and timely connections with customers via mobile applications, to ensure a smooth continuation of transactions.
This technology is a pivotal game-changer for omnichannel businesses, catalysing rapid innovation and expediting the implementation of novel ideas, ultimately reducing time-to-value. Cloud-based fashion retail solutions equip companies to expand their reach more effectively, leveraging cutting-edge technologies to efficiently manage seasonal fluctuations in demand or rapid growth while ensuring optimal customer service throughout the year.
Pioneering approaches to personalised style
Personalisation has emerged as a fundamental element within the contemporary fashion industry. However, some fashion tech startups propel personalisation to uncharted heights by harnessing innovative technologies. By integrating machine learning algorithms and artificial intelligence (AI), startups delve into consumer data to offer tailored fashion recommendations.
These meticulously designed and sophisticated algorithms consider a customer’s individual style preferences, body type, and prior purchase history, culminating in curated and personalised fashion advice. For instance, augmented reality (AR) technology lets customers virtually try on outfits before finalising a purchase. Some startups have even introduced interactive mirrors in fitting rooms, presenting supplementary product details and providing alternatives in terms of sizes and colours.
The rise of fashion tech startups across Southeast Asia symbolises the region’s dynamic response to changing consumer behaviours and global sustainability concerns. As these fashion startups continue integrating cutting-edge technologies, they redefine how people experience fashion and leave an indelible mark on the industry’s future trajectory.