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How the Internet of Things is
Transforming the Apparel and
Footwear Industry

As the digital and physical worlds continue to converge, consumers expect more from brands than ever before. According to LS:N Global, almost half of consumers now expect brands to know who they are and to help them discover products and services that meet their needs.1 The age of smart products has arrived, from appliances which can be turned on while away from home, to cars with sophisticated smartphone apps that support keyless driving, environmental controls, and more.

Avery Dennison’s smart product platform, Janela™ enables apparel and footwear products to be ‘born digital’ by giving them a unique ID and digital profile at the point of manufacture. This gives retailers and brands the ability to connect to the cloud and unlock a myriad of personalized and interactive content for their customers.

Now that the future of
connected products is here,
are you ready?

Check out Janela™ now!

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hand with phone scanning a smart ticket

The next logical step is for retailers and brands to utilize real-time customer data and translate it into a personalized experience for the consumer. Improvements in technology have led to the possibility of individual profiling, enabling brands to respond with a tailored marketing solution, thanks to the internet of things (IoT).

IoT enables brands to connect with consumers in a personalized way. For retail, this means apparel and footwear products can now be manufactured with a unique digital identity. Avery Dennison’s smart product platform JanelaTM, powered by EVRYTHNG, enables apparel and footwear products to be ‘born digital’ by giving them a unique ID and digital profile at the point of manufacture. This unique identifier connects to the cloud and gives retailers and brands the ability to unlock a myriad of personalized and interactive content for their customers.

Close-up of a care label

With Janela™, brands can now generate real-time data for direct customer interactions. Consumers are able to interact with products through their smartphone to gain access to unique content, reviews, style suggestions and even intelligence into how the garment was made and ultimately how to recycle it when it reaches its end of life.

Brands and retailers can now drive sales and increase loyalty by leveraging consumer insights to develop targeted product offers and suggestions. Unlike traditional marketing, brands can now drive greater consumer value based on a holistic assessment of their wants and needs,  delivering an enhanced personalized experience. This application of IoT means data driven from these interactions allows brands to make improved trend predictions, enhance supply chain processes and ultimately increase conversion rates. The communication works both ways; consumers can also provide feedback, write reviews and share activity through social media, further increasing brand intelligence to drive future business decisions.

“It’s an exciting time for the apparel
and footwear industry as IoT continues to expand with a rapidly growing number of connected products,” said Kim Schneider, Senior Director, Technology Solutions, at Avery Dennison RBIS.

“The explosive growth of mobility and IoT in a world that is quickly shifting to ‘always connected’ and ‘always on’ coincides with large shifts happening in the retail space. Retail is transforming from a place where transactions occur to an experiential destination in which transactions are a by-product. Will brick and mortar go away? It’s highly unlikely but it is clear that in order to compete in this new landscape you can’t have bricks without clicks.”

Some successful adoptions of other IoT applications in retail are already in place. It is estimated that 72 percent of retailers have already actioned IoT in some form.2 Under Armour, for example, is a leader in utilizing IoT. Their recent acquisition of MapMyFitness and MyFitnessPal, in addition to  their own UA Record makes them the “World’s Largest Global Health and Fitness Community” to date. It is estimated that one in five people in the U.S. have at least one of the UA apps, and the U.S. only represents 57 percent of all global users.3

But, exactly how big is the potential for the whole industry? According to Cisco, “The internet of things creates a $14.4 trillion opportunity, of which it estimates retail to be the second largest industry to benefit from the potential Value at Stake after manufacturing.”4 If correctly utilized, the return on investment is exponentially multiplied.

Over the next three years, Avery Dennison RBIS, in collaboration with EVRYTHNG, will create the opportunity for 10 billion apparel and footwear products to be ‘born digital’ through Janela™.  This represents the first truly industrial scale digital enablement of everyday products, and enables brands to easily deliver digital applications through their physical products. Now that the future of connected products is here, are you ready?

Contact us to find out how your products can be ‘born digital’ with Janela™ and follow the conversation at #JanelaBornDigital.

Sources

  1. LS:N Global, Perceptive Brands, May 31, 2015
  2. Computer Weekly, Industry is 12 months out from mass IoT adoption says IDC, 22 September 2015
  3. ZD Net, Will Under Armour's big data, app experiment pay off? February 5, 2015
  4. Cisco, IBSG, 2013