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Hassle-Free Shopping with New Fintech Trends

The fashion e-commerce landscape has changed significantly in the last few years, thanks to technology and changing consumer habits.

FinTech has brought many innovations that have made e-commerce so much more carefree. Buyers feel that the intersection of tech and fashion has surprised and delighted them into buying with so many options at the click of a button.

Here are some trends that are happening with notable players leading the charge.

Augmented Reality (AR) Try-Ons
Do you recall when shopping over the web was all about financial risk? Such days are gradually turning out to be a thing of the past due to Augmented Reality-based try-ons. AR technology has advanced with enhanced precision in its real-time rendering.

Impact on E-commerce: AR try-ons are changing the status quo of how fashion products are bought online. Through the use of technology, customers can make purchases similar to a physical trial, where they can try out a shirt, wear an accessory, or apply cosmetics. The trial eliminates the chances of losses, reducing the percentage of customers who return their purchases often.
Industry Player: Wanna Kicks is doing an excellent job by offering AR try-ons for sneakers. Satisfied customers confirm that the company's technology is as effective as advertised.

Sustainable Fashion Tracking
As a result of rising awareness of environmental conservation, customers are now calling for complete disclosure of the effects of fashion fabrics. Smart sensors and the implementation of blockchain technology ensure that the lifecycle of a garment, from obtaining materials to production and delivery, is recorded with utmost transparency.

Impact on E-commerce: It enables fashion brands to give customers certain information related to the sustainability of products they offer, helping environmentally conscious users make the right choices. This information is backed by the prices and the breakdown of the fabric used in the product.
Industry Player: G3+ Fashion is one company that is making a lot of effort to provide greater detail on its product's sustainability information. Due to this, it has managed to build a strong customer portfolio based on trust and goodwill.

AI-Powered Personal Styling
Fashion is always unique as per trends. Different things suit different people. Hence, there was always a gap in personal fashion. Enter AI-powered personal styling. The advancements in machine learning now allow for algorithms to ascertain people's preferences for specific products or services and provide recommendations.

Impact on E-commerce: These AI stylists use consumer's purchase history and their internet browser history, including social media interactions, to recommend clothes that best fit their choice. That is, it is as if one has a personal stylist in his or her pocket!
Industry Player: One of the leaders in this sphere is Stitch Fix, which offers clothes suited to the client's preferences with the help of AI. Their success story showcases personalized recommendations as one of the best applications of FinTech in e-commerce and fashion.

Blockchain for Authentication
Today, global counterfeiting is significantly high in the fashion industry. Hence, matters concerning originality are of considerable significance to the industry. In this regard, blockchain offers a secure distributed electronic record that can trace a product from its manufacture to its consumer purchase.

Impact on E-commerce: Customers feel safe using Blockchain authentication, which enables them to ensure the genuine nature of their products, especially when purchasing products from the luxury brands segment. This technology also assists labels in fighting against fake products being sold on the internet by fraudsters.
Industry Player: LVMH, the French luxury goods conglomerate, pioneered the adoption of blockchain technology in goods authentication. Their AURA platform is a good example of the application of blockchain in fashion e-commerce.

Social Commerce Integration
Social media applications are presently a necessity in everyone's life, and fashion e-commerce is not left behind. As seen in the case of advanced APIs and the integration of social media platforms with e-commerce sites, social commerce is already a reality.

Impact on E-commerce: Customers can now find products they are interested in and make seamless purchases through social media, combining the processes of communication and shopping.
Industry Player: One of the main trends in connecting purchases with discovered content has been Instagram Shopping, in which brands can tag products in their posts and Stories.

Voice Commerce
With the rise of smart speakers and voice assistants, voice commerce is the next big thing in fashion e-commerce. Natural Language Processing (NLP) has come a long way in this space, and it can now accurately recognize and understand context.

Impact on E-commerce: Customers can now search for products, add to cart, and checkout using voice commands alone.
Industry Player: Amazon's Alexa has been at the forefront of voice commerce with features that allow users to shop for fashion items using voice commands through the Amazon shopping portal.

Conclusion
The world of fashion e-commerce is evolving, thanks to technological innovations altering how we engage with e-commerce. From AR try-ons that bring the fitting room to your living room to AI stylists that understand your preferences better than your best friend, these trends are revolutionizing how we shop and reshaping our connection with e-commerce and fashion.

Who knows? Your next favorite piece might be suggested by an AI, verified by blockchain, and virtually tried on before it even arrives at your doorstep. It's come to the future of fashion e-commerce – it's looking good!

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Victor Martin

Victor Martin

CMO

SquareRoot

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26 Jan 2017

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Dublin

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This community aims to provide links, resources, book suggestions, tips and insights to facilitate learning and development of IT professionals in financial services, and to develop a forum for IT professionals to exchange views on various related items.


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