Optimizing data collection and analysis is a critical aspect of success in the fashion industry. Recognizing this, Launchmetrics and Publicis Sapient have joined forces to provide valuable insights on this topic. Through their collaborative efforts, they have conducted a study called “The State of Measurement in Fashion, Luxury & Beauty 2022,” which involved interviews with over 1,000 industry experts worldwide, with a particular focus on the United States and China.

The primary objective of this collaboration between Launchmetrics, a data analytics company, and Publicis Sapient, a digital consulting agency, is to assist fashion companies in understanding and assessing the impact of their media initiatives. Additionally, they aim to help these companies measure and refine their return on investment (ROI). According to Michael Jais, the CEO of Launchmetrics, many clients lack the necessary skills, knowledge, and mindset to effectively interpret data before making informed decisions. This poses a significant challenge in today’s marketing landscape, where data plays a pivotal role.

Olivier Abtan, the managing director of Publicis Sapient, acknowledges the struggles that brands face in recruiting professionals capable of transforming data into valuable insights. The report highlights a surprising finding that up to 50% of marketing managers struggle to draw meaningful conclusions and observations from the data they have access to. It is crucial for fashion companies to possess both the tools for data collection and the right skills to extract, interpret, and convert that data into actionable insights.

To overcome these challenges, Jais emphasizes the importance of setting clear objectives and evaluating the relevance and coherence of marketing strategies. He believes that brands need to step away from events, fashion shows, trends, and competitor activities to focus on establishing clear goals and maximizing efficiency and profitability.

The first step in optimizing data collection and analysis is to identify and define key performance indicators (KPIs) as the fundamental units of measurement. These KPIs should facilitate decision-making based on the right data. Interestingly, the report reveals that 70% of data scientists in the industry believe that a unified view of marketing performance should be a top priority for all fashion companies. This means acquiring a global vision across different channels and means of expression.

Abtan highlights the need for brands to move away from working independently and autonomously and instead collaborate to pool their data. This collaboration will pave the way for meaningful analysis, as Abtan proposes the establishment of “universal measures” to enable the comparison of channels and facilitate benchmarking. The report underscores that one-third of respondents mentioned obstacles in conducting competitive analysis, while 51% acknowledged the challenge of interpreting data.

One of the major challenges of data collection and analysis is the sheer volume of data that needs to be analyzed. Jais notes that the proliferation of social networks, video formats, and livestreams has led to a tripling of touchpoints. With limited budgets, brands must ensure that they have a clear understanding of what works and what doesn’t. Prioritizing relevant data and setting objectives are crucial in making data-driven decisions.

Data holds a special significance for fashion and luxury brands. While companies in other industries focus on customer data, luxury brands prioritize the data associated with their own value. Jais explains that between 60% and 80% of a luxury brand’s value lies in the brand itself, as the difference between products is relatively small. Leveraging data is therefore key for luxury brands to enhance their brand and create unique experiences.

In addition to these challenges, rising acquisition costs and the European data protection regulation further complicate data collection and analysis in the fashion industry. Abtan highlights the increased costs in the luxury sector, making it more expensive to express oneself, collaborate with influencers, or reach a specific target audience. Measuring the return on investment becomes crucial to ensure the effectiveness of marketing initiatives.

The report also touches upon the growing importance of new virtual universes, such as the streaming platform Twitch and the instant messaging service Discord. Jais points out the disconnect between luxury brand customers and these alternative digital platforms. He believes that luxury customers will take longer to adapt to these new platforms compared to the evolution of technology and data.

While Abtan suggests that brands should experiment and understand these emerging platforms, he emphasizes that their primary focus should be on launching on the Web3. Before fully embracing the metaverse and NFTs, luxury brands need to consider other important factors. The development of this sector is expected to take time, allowing luxury brands the luxury of time for careful consideration.

In conclusion, optimizing data collection and analysis is vital for success in the fashion industry. Brands must possess the right skills and mindset to interpret data and convert it into valuable insights. Setting clear objectives, prioritizing relevant data, and establishing a unified view of marketing performance are crucial steps in making data-driven decisions. Luxury brands must utilize data to enhance their brand and create unique experiences. As exciting as the opportunities in new digital worlds are, brands should carefully evaluate their target audience and the potential return on investment before fully embracing these platforms.

Useful Links:

1. Launchmetrics
2. Publicis Sapient