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Spotlight on Sustainability: 4 Barriers Retailers Face When Moving Towards Sustainability Goals
Crafting a Sustainable Future
The fashion and retail landscape is turning green. Europe is experiencing a dramatic course change when it comes to fashion – strategically shifting from the outdated model of ‘make, use, dispose’ to instead using sustainable materials, enabling regulatory compliance, boosting product traceability and much more.
For businesses, how well they transition to this new model will define their credibility and profitability for years to come. At Centric Software®, we’re proud to provide digital transformation solutions that are both good for the planet and good for business.
Keep reading to discover the 4 key themes our retail experts say will either help or hinder your long-term circular fashion strategy – and what part Artificial Intelligence (AI) and data will play in this journey.
How you store and process data
The messier your product data, the more challenging it will be to leverage it for sustainability purposes. In many cases we’ve seen, businesses have all of the information they need, but it’s spread across multiple departments, geographies and systems, often saved as offline files – all of which invites in duplicates and mistakes.
❌ Lack of collaboration between internal teams and with suppliers
❌ Missed opportunities to demonstrate green credentials
❌ Supply chain decisions based on guesswork, rather than accurate data
❌ Inability to manage material traceability, certifications and ethical sourcing
The agility of your systems and processes
With Business of Fashion estimating that 16 pieces of EU sustainability legislation were under discussion in 2023 alone, fashion and retail businesses need to be able to quickly pivot to comply with regulations and certifications. Many of these laws have been amended, with countless more facing last-minute deadline changes. Retailers must lean on innovations such as AI and cloud-based data sharing to keep pace with change and ensure regulatory compliance.
❌ Loss of competitive edge
❌ Drain on time and resources
❌ Costly last-minute changes to assortments and slow time to market
❌ Regulatory non-compliance resulting in fines, prosecution and / or damage to brand reputation
How your business utilizes AI
Gone are the days of the ‘endless aisle’ strategy – instead, retailers are switching to a ‘right aisle’ approach, meticulously forecasting demand and curating assortments that land in the right store, at the right time, at the right price. AI-powered tools are a driving force behind this.
❌ Broad and shallow assortments
❌ Excess inventory / deadstock
❌ Disposal of unsold and returned goods
Your supply chain transparency & product traceability
In a new planet-positive era of retail, every link in your supply chain will be under scrutiny: from customers, investors and policy makers alike. Retailers and fashion brands must be confident that every supplier, factory and third party in their network is adhering to strict standards – or face the consequences.
❌ Risk to people and the environment
❌ Greenwashing claims
❌ Fines or prosecution
❌ Loss of brand trust amongst your customers
Sustainability in the spotlight continues…
Across Europe, the wheels are in motion for transformational change that will protect the planet – and if retailers and fashion brands act now – their bottom line.
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