Technology and Innovation in the Fashion and Luxury Business - Essay Sample

It is imperative to note that technology has marked a new beginning for the whole world. Since the invention of technology people have changed how they do things and even what they wear to the point where technology has become part of people’s lives (Sargiacomo, 2018). The technological trend has continued to change mankind to conduct its businesses. Technology has made life into a fine balance of production and convenience. Considering luxury and fashion business, there has been a major boost because technology has enabled such businesses to deliver excellent customer services alongside providing a luxurious shopping experience for the customers (Sargiacomo, 2018). The paper intends to discuss how technology and innovation have impacted fashion and luxury businesses.

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An example of an analogy innovation is the introduction of a logistics process, in this case, the analogy innovation would be for example, how the ship’s freight container would be filled logistically because much less time would be needed in the loading and unloading of the ship than if it was done in a stationary warehouse.

Understandably, in the modern technological and innovative advancements, the exchange of technology has increased tremendously. Firms and individuals who are unable to build their technology can acquire such technologies from parent firms. In the case of R & D, which is known as research and development collaboration, it involves working with others or jointly together in intellectual and research and development programs to achieve the goals (Sargiacomo, 2018). However, in technology licensing, it only takes place where one of the parties involved owns valuable assets also known as intellectual property. Because of such ownership rights, he has the legal capacity to prevent the other party from accessing or using it. Therefore, a license acts as consent or agreement by the owner to the use of the rights in exchange for the money or anything of value. Technology can be acquired using different channels. For example, in the case of R & D, it can be acquired through a minority investment in other technological firms. In the case of licensing, it can be acquired through the acquisition of intellectual property rights (Sargiacomo, 2018).

Over the years, overseas production has increased tremendously. However, this is attributed to some of the advantages that it offers to manufactures. There is a lower production cost as compared to producing locally. This is because the raw materials that would otherwise be imported if production was to take place locally are now available at low prices (Gkypali, Filiou and Tsekouras, 2017). Other costs are also reduced. Another benefit is that there is the possibility of mass production because production cost is reduced hence allowing goods to be produced in large volumes. Further, there is an increased scale and flexibility in production.

With the increased marketplace volatility coupled with rising differences in customer needs; various business models are quickly outdated (Gkypali, Filiou, and Tsekouras, 2017). As a result, there is an increased need for business model innovation. The adapter approach is an example of a business model innovation. This approach is applied when the core business, even when reinvented, cannot combat fundamental disruption. It helps to explore adjacent markets or businesses. The adapters must always build an innovation system that helps to continuously drive experimentation so that is can find a successful new core using the right business model. An example of a company that uses this approach is IBM company (Gkypali, Filiou, and Tsekouras, 2017).

It is important to note that omnichannel marketing involves delivering a consistent and personalized experience for shoppers across all devices and channels (Silva, Duarte, and Sundetova, 2020). However, multichannel delivery focuses on many different channels that involve direct mail, mobile, social media, and even physical location. Therefore, to be able to deliver the jewelry to my warehouse, I would consider using a multichannel type of marketing as I will be able to market the products in different channels. As a result, this will enable me to capture a large number of customers (Silva, Duarte, and Sundetova, 2020).

In conclusion, various factors on technology and innovation in the fashion and luxury business has been discussed. The paper has distinguished between R & D and licensing alongside giving the respective technology acquisition channels associated with them. Also, a discussion on the benefits of producing overseas has been given. Lastly, the paper has defined what the adapter business approach is and gives an example of a company that uses this model and why my business would use the multichannel method to deliver the products.

References

Gkypali, A., Filiou, D. and Tsekouras, K., 2017. R&D collaborations: Is diversity enhancing innovation performance? Technological Forecasting and Social Change, 118, pp.143-152. https://e-space.mmu.ac.uk/618027/3/TFSC_Gkypali_et_al_Full%20Manuscriptsymplectics%281%29.pdf

Sargiacomo, M., 2018. Accounting, the ‘Art of Interessment’and the ‘Good Spokesperson’: innovation in action in luxury high fashion (1959–1979). Accounting History Review, 28(1-2), pp.85-127. https://www.tandfonline.com/doi/abs/10.1080/21552851.2018.1501399

Silva, S.C., Duarte, P. and Sundetova, A., 2020. Multichannel versus omnichannel: a price-segmented comparison from the fashion industry. International Journal of Retail & Distribution Management. https://www.researchgate.net/profile/Paulo-Duarte/publication/339985215_Multichannel_versus_omnichannel_a_price-segmented_comparison_from_the_fashion_industry/links/5e72602f92851c93e0ad33ef/Multichannel-versus-omnichannel-a-price-segmented-comparison-from-the-fashion-industry.pdf