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Fashion 4.0 - Digital Innovation in the Fashion Industry

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Triggered by digital transformation, it is very likely that the clothing industry will undergo profound changes over the next few years. Smart Clothes, i. e. clothing characterized not only by its traditional protective and representational functions, but also by technological and digital features, have evolved as a promising opportunity for one of the world's largest economic sectors-the fashion industry. Since the rise of wearables (e.g. smart watches and glasses), intelligent apparel has recently appeared on the market, but has not yet received adequate attention in the literature. Biometric body analysis in sports and health care, assistance systems for sensory organs and muscular activities, as well as useful digital services through interactions with intelligent items as part of the Internet of Things (IoT) environment, are just some of the product concepts and use cases. From a business perspective, these developments make it necessary to reconsider product development approaches, business models and collaborations. In order to be able to assess respective challenges and opportunities of Smart Clothes, this article illustrates and classifies various developments regarding potential digital technology applications and product concepts in fashion. Subsequently, this article offers implications for product innovation and new business models.
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JOURNAL OF TECHNOLOGY AND INNOVATION MANAGEMENT 2018; 2(1): 19
Fashion 4.0 Digital Innovation in the Fashion Industry
Oliver Behr a,1
a European School of Management and Technology (ESMT), Berlin
Abstract. Triggered by digital transformation, it is very likely that the clothing industry will undergo profound changes over the
next few years. Smart Clothes, i. e. clothing characterized not only by its traditional protective and representational functions, but
also by technological and digital features, have evolved as a promising opportunity for one of the world's largest economic sectors
the fashion industry. Since the rise of wearables (e.g. smart watches and glasses), intelligent apparel has recently appeared on the
market, but has not yet received adequate attention in the literature. Biometric body analysis in sports and health care, assistance
systems for sensory organs and muscular activities, as well as useful digital services through interactions with intelligent items as
part of the Internet of Things (IoT) environment, are just some of the product concepts and use cases. From a business perspective,
these developments make it necessary to reconsider product development approaches, business models and collaborations. In
order to be able to assess respective challenges and opportunities of Smart Clothes, this article illustrates and classifies various
developments regarding potential digital technology applications and product concepts in fashion. Subsequently, this article offers
implications for product innovation and new business models.
Keywords. digital innovation management ∙ smart clothes business model innovation ∙ digital transformation
© 2018 Journal of Technology and Innovation Management. All rights reserved.
1. Introduction
"If we believe that our future is going to be defined by these hard pieces of glass or plastic
that sit in our back pockets, you're crazy, [...] It is going to convert into apparel."
Kevin Plank, CEO Under Armour (Saulles, 2016)
Digital assistants like Alexa or Google Home tell us about the weather and control the blinds. Our refrigerator can order milk
from a food supplier and when we leave our workplace, the smart home heating system starts to prepare a pleasant temperature
in our apartment. What sounded like science fiction a few years ago has already been realized technically today. The Internet of
Things, an infrastructure of (everyday) devices that can connect and interact with each other (Wortmann & Flüchter, 2015),
penetrates more and more areas of our life. These intelligent devices are usually connected to the Internet and autonomously
collect, evaluate, and send data to react to certain situations. According to the European Commission, the Internet of Things (IoT)
represents the next step towards the digitisation of our society and economy, where objects and people are interconnected through
communication networks and report about their status and/or the surrounding environment(Rohen, 2013). This paper follows the
definition that the Internet of Things enables objects sharing information with other objects/members in the network, recognizing
events and changes […] to react autonomously in an appropriate manner. The IoT therefore builds on communication between
things (machines, buildings, cars, animals, etc.) that leads to action and value creation” (Aguzzi et al., 2014).
Computational or sensory electronic devices worn on the body, so-called wearables (Fernandez, 2014), such as the Apple Watch
or the Fitbit, are already part of our daily routine. However, the acceptance of such wearables is usually limited to accessories such
as watches and fitness trackers, whereas apparel worn on the body, such as pants and shirts, are not necessarily associated with
innovative and digital characteristics. Of course, there have been many innovations in the fashion industry in terms of production
processes, scale, design, material and distribution. However, disruptive digital and technological changes to the garment itself are
rarely observed.
Smaller and more powerful devices, as well as digital technologies and service-oriented product concepts, however, indicate a
change that could fundamentally affect our everyday life an entire and permanent analysis, connectivity and support of our
body by intelligent clothing: Smart Clothes. This term refers to garments with technical and digital features in addition to original
protective and self-presentation functions (McCann & Bryson, 2009).
To address challenges and opportunities caused by technological and digital innovation in one of the world's largest
manufacturing industries the fashion industry this article provides a comprehensive overview of respective developments and
product concepts within the field of Smart Clothes. Subsequently, implications towards product development and new business
models are explored and described. The article is primarily aimed at practitioners responsible for strategy, business development
and digital innovation. It might also be a useful introduction for researchers and students who are interested in this field. The
article does not deal with smart production possibilities, such as IIoT, industry 4.0, or 3D printing (as an introduction, see Kiel,
1 E-Mail address: o.behr@hotmail.de
O. Behr / Journal of Technology and Innovation Management 2(1) (2018) 19
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Arnold, and Voigt (2017)). Also, this article does not address the possibilities of digital marketing and distribution channels,
including omnichannel or social media (for further information, see e.g. Wagner (2017) and Wagner, Baccarella, and Voigt (2017)).
Rather, this article addresses the potential of intelligent fashion products itself. To this end, the article first illustrates examples to
indicate the current and future direction of concepts and developments. Afterwards, the challenges for business models are
described and general recommendations to face the digitalization in the fashion industry are presented.
2. Wearables and Smart Clothes
2.1. Terminology and classification
In line with the high penetration rate of smartphones, we are experiencing a fascinating new trend in the wearables market:
Early technology adopters are showing a growing interest in a mobile ecosystem of devices designed to improve the quality of our
life by providing services that a single device cannot achieve on its own (Rogers, 2010).
These devices are called wearables and include intelligent watches, wristbands, glasses, shoes, clothing, hearing aids, implants
and helmets, i. e. electrical devices worn on the body. Wearables can capture, communicate with, and respond to a wide range of
data from the body and the environment, and can thus be assigned to the Internet of Things (IoT) (Hiremath, Geng, & Kunal,
2014). This article deals with intelligent apparel, the so-called "Smart Clothes", as part of the main group wearables (see Figure 1).
This paper will interchangeably use the terms garments, apparel, and clothes for any piece of clothing that people wear to cover
their bodies (Marriam-Webster, 2018).
Figure 1. Term classification (own illustration)
2.2. Development
As early as the 1970s, Steve Mann from the Massachusetts Institute of Technology (MIT) studied intelligent clothing and its
potential. However, technical difficulties initially slowed down his efforts (Vargas, 2009). Research interest in the field of Smart
Clothes has then been continuously growing with the advent of the Internet and technological advances in the beginning of the
new century.
Following improvements in the area of smaller, cheaper and more powerful sensors, innovative pioneers of the fashion
industry, such as adidas, Nike or Ralph Laurent, as well as new actors to this industry, such as Google, are now introducing product
concepts, equipped with technical components and digital attributes. Clothing items are endowed with technical hardware and
digital characteristics, providing the customer with new services and advantages, whilst at the same time challenging current
business models in the fashion market.
3. Smart Clothes Use cases
Innovative companies are recently presenting a promising outlook on the future developments within the context of Smart
Clothes. There are three main areas of application: (1) Sports and health, (2) environmental monitoring, organ of perception and
exoskeleton, as well as (3) communication and interaction.
O. Behr / Journal of Technology and Innovation Management 2(1) (2018) 19
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3.1. Sports and health
Manufacturers of sportswear have already recognized that new products and business models comprising the analysis of
biometric data in sports may have great potential. Particularly in professional sports activities, most injuries can be attributed to a
lack of muscle warming or overuse. Accurate measurement of body activity during a workout allows not only recognizing and
reacting to threats during exercises at an early stage, but can also indicate data-driven training methods. Since professional athletes
are among the most well-paid professionals in the world, their injuries can cause considerable costs, arising from treatment and
rehabilitation, as well as from missing ticket and merchandising revenues. These prospects have prompted sporting goods
manufacturers to invest in intelligent sports apparel, which enables real-time monitoring of body and muscle activity to provide
optimal control and customization of athletes' training. New materials and sensor technology, integrated into the material of
garments and sensors covering large parts of the body's respective areas, now enable a more accurate measurement of the body's
data such as heart rate, lung activity, muscle activity, skin's galvanic conductivity, blood pressure, body position or acceleration
(Borges et al., 2008).
Fitness trackers can be seen as the first successful commonly accepted realization of wearables in sports. Products by Garmin,
the Apple Watch or the Fitbit, pushed the trend towards tracking sports performance for a large part of the population. However,
the wrist is not necessarily the most effective and inconspicuous location of sensors and storage units.
It was the lifestyle fashion brand Ralph Laurent, who were among the first to launch a sophisticated smart shirt in 2014 the
Polo Tech2. The tight-fitting training shirt has silver fibers woven directly into the material and a small sensor-filled black box that
measures biometric values such as steps, heart rate, respiration and energy level. This product was developed in cooperation with
the company OMsignal3, which now itself provides Smart Clothes and connects them via its own platform. Start-ups such as Athos4
and dorsaVi5 followed, developing sports outerwear and underwear. Sensoria6 develops socks and shirts equipped with sensors
which, in conjunction with a virtual coach on the smartphone, create running analyses and training recommendations for athletes.
With a small sensor that can be attached to any pair of pants, Lumo7 introduced a convenient way to use sport pants in a new way.
Among other things, this sensor measures acceleration, braking movements and speed, and is intended to provide conclusions
about the running behavior. Lumo also offers its customers a digital coach that creates individual training plans based on the
acquired data. The large and established companies of the sports fashion industry such as adidas and Nike have initiated
developments to meet the demands of the ongoing digitalization process. Nike developed the Nike+ sensor in 2006, which
measures, in combination with the Apple iPod, sports activities and has since started further research projects and filed patents8. In
cooperation with the US basketball league NBA, the program NikeConnect9 has been initiated in 2017 and is intended to offer
individual and exclusive digital services to the fans in combination with a tag integrated in a basketball jersey. adidas is supplying
professional athletes with smart shirts to demonstrate training progress and generate new training plans10.
Not only in the field of sports, but also throughout the entire healthcare system, garments with technical and digital
capabilities monitoring body activity, offer promising use cases. Precise personal body data from the sensors of intelligent apparel
in combination with predictive analytics can create an automated, data-controlled feedback and monitoring system in the hospital
environment that recognizes dangerous situations at an early stage (Axisa, Dittmar, & Delhomme, 2003; Pantelopoulos &
Bourbakis, 2010). These types of systems will potentially be able to provide feedback on rehabilitation training that is specifically
and individually tailored to the patient. Owletcare11 specializes in monitoring toddlers to provide concerned parents with an
overview of their child's health. The pharmaceutical and beauty industry also builds on innovations in the field of Smart Clothes
and is investing in apparel made from medical textiles that can release moisturizers, perfumes or medical ingredients. It is
therefore conceivable that Smart Clothes could, in the future, accelerate the wound healing process and transform body odors or
administer medication.
The sports and health sector has put forward many applications and established itself as a pioneer in the Smart Clothes market.
In course with the progressive health trend in our society, the accurate, continuous and unobtrusive measurement of body data
could make a promising contribution to a more connected future.
3.2. Environmental monitoring, organ of perception, and exoskeleton
As soon as one gets behind the wheel of a car, numerous auxiliary and assistance systems are activated, which monitor and
assist a person’s activities. Imminent danger can be recognized, speed and distance to the vehicle in front are measured and
adjusted independently. These kinds of help and assistance systems are conceivable when thinking about clothes, too.
Elderly people or those who suffer from physical disabilities are often limited in their movement by dwindling muscle strength
which makes sitting upright, getting up, or other physical tasks increasingly demanding. Therefore, technical supporting systems
worn on the body in Smart Clothes could assist physical activities. The Superflex-suit12 by the design agency fuseproject is equipped
2 https://www.theverge.com/2015/8/20/9178923/ralph-laurens-polotech-smart-shirt-is-the-ultimate-preppy-tech
3 https://omsignal.com/
4 https://www.liveathos.com/
5 https://www.dorsavi.com/us/en/movementsuite/
6 http://www.sensoriafitness.com/
7 https://www.lumobodytech.com/lumo-run/
8 https://qz.com/315924/the-patented-nike-shirt-that-could-track-your-heart-rate-and-blood-pressure-while-you-exercise/
9 https://news.nike.com/news/nikeconnect-jersey-app-guide
10 https://ark-invest.com/research/adidas-smart-shirt
11 https://owletcare.com/
12 https://fuseproject.com/work/superflex/aura-powered-suit/?focus=product
O. Behr / Journal of Technology and Innovation Management 2(1) (2018) 19
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with actuators that can support the muscular work of the person wearing a type of garment that is commonly called artificial
exoskeleton (Van Dijk, Herman, & Edsko, 2011) (see Figure 2).
Figure 2. Concept Superflexsuit by fuseporject
Source: https://fuseproject.com/work/superflex/aura-powered-suit/?focus=product
Moreover, several companies are experimenting with integrating lights, feedback systems, and other technical enhancements to
the garment. The startup Loomia13 has presented products that heat up or glow in certain situations. CuteCircute from London
developed the Twitter dress14, which changes its color once it receives a tweet (See Figure 3). The Hug-Shirt15 lets its wearers feel
the external influences of another person wearing the shirt such as a hug. The designer Hussein Chalayan created dresses that
change their shape and fit while wearing by adding small actuators in the garment, which caused a small sensation at the Paris
Fashion Week16.
Figure 3. 10.000 LED dress by CuteCircute
Source: http://cutecircuit.com/press/mfa-dress-at-techstyle/
Furthermore, by means of haptic and visual feedback, Smart Clothes could potentially notify the wearer once the garment
perceives certain triggers. Within the context of augmented and virtual reality applications, the combination of sensory perception
and feedback systems of the garments are becoming increasingly interesting (Yurieff, 2017). Here, Smart Clothes can be used to
transform the movements of the wearer into a virtual world and provide the person who wears it with context-related
information17.
13 https://www.loomia.com/
14 http://cutecircuit.com/the-twitter-dress/
15 https://cutecircuit.com/the-hug-shirt/
16 https://www.technologyreview.com/s/406705/transforming-clothes/
17 https://www.machina.cc/
O. Behr / Journal of Technology and Innovation Management 2(1) (2018) 19
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Moreover, the military research impressively shows possibilities and developments in the field of environmental sensors,
sensory organs and exoskeleton (Cornwall, 2015). The TALOS Exosuit (Tactical Assault Light Operator Suit)18 is being developed in
the USA in a large-scale research project, including 56 companies, 16 government agencies, 13 universities, and 10 national
laboratories. The suit is supposed to embed sensors for monitoring body temperature, heart rate, hydration, and body position.
Additionally, heating and cooling functions for the temperature within the suit, bulletproof armor, 360-degree cameras with built-
in night vision and a motorized exoskeleton supporting muscle activity are planned. The first prototypes are expected in the year
2018.
3.3. Communication and interaction
Unlike above-mentioned approaches to smart clothes, the developers of the company Avery Dennison focus less on connecting
apparel to the wearer's body than on the communication of apparel with its environment19.. By means of integrated transmitters
like RFID chips, garments can be identified and contacted individually. A football jersey could then also be the ticket to a football
match in a stadium and could enable a person who wears it to pre-order drinks or to activate exclusive content in the halftime. The
project NikeConnect makes it possible to personalize a certain Nike jersey after the purchase. After the online registration via the
NBA-jersey’s tag, wearers receive access to exclusive highlights, playlists, products, and experiences from their favorite team.
Another concept is the Limited Edition BRIGHT BMBR jacket20 (see Figure 4), a collaborative project of New York design label
Rochambeau and RFID chip supplier Avery Dennison. The chip integrated in the garment, grands access to special services like VIP-
entrance to partner-locations or exclusive experiences, such as tastings and private guided tours to art galleries.
Figure 4. BRIGHT BMBR jacket
Source: https://brightbmbr.nyc/
Likewise, companies can store information about materials, handling, manufacturing, ownership, recycling or warranty
directly in the garment, giving the customer additional and easy to access information about their clothing item. Furthermore,
companies can offer additional products and services to customers wearing connected apparel. Smart Clothes can connect to apps
in the surrounding environment and communicate with, for example, cash register systems21. Another application would be the
wardrobe: All clothes inside can be stored regarding color, shape, and material to derive personal preferences. The digital
wardrobe can then assist in the daily outfit choice and recommend matching items for purchase. This kind of clothes’
communication with the environment is an interesting, yet feasible and cost-effective springboard for the fashion industry to
advance into a digital and service-oriented future.
For Google and Levi Strauss, a logical next step is the direct interaction of wearer and apparel. Therefore, they have developed
thin, touch-sensitive, and flexible threads made of conductive metal alloys, allowing direct control of another device, such as a
smartphone. These threads can be combined with a variety of natural and synthetic fibers while retaining the weight and touch of
a normal fabric. This results in interactive textiles that activate trigger commands on a smartphone by means of gestures on the
material. For example, by wiping on the sleeves of the Levi's Trucker Jacket22 it is possible to control a music playlist, start the
navigation-system or receive calls on the smartphone.
18 http://www.businessinsider.com/the-militarys-iron-man-suit-called-talos-will-arrive-in-2018-2015-10?IR=T
19 http://rbis.averydennison.com/en/home/our-solutions/apparel-and-footwear-branding/introducing-janela-smart-product-platform.html
20 https://brightbmbr.nyc/
21 https://www.wareable.com/smart-clothing/lyle-scott-contactless-payment-jacket-1605
22 https://atap.google.com/jacquard/
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In essence, the vision of Smart Clothes that are connected with intelligent devices as part of the Internet of Things environment,
indicate highly interesting scenarios.
4. Challenges and implications
4.1. Product requirements
In order to make intelligent clothes interesting for a larger part of the population and to fully exploit its market potential, the
products have to meet several requirements.
People utilize clothes alongside their classical protective functions: to represent themselves to the world and to create, define,
and communicate their intended identity (Joo Park, Young Kim, & Cardona Forney, 2006). In addition to hard factors such as
price and function, the purchase decision for apparel is often based on “soft” factors such as strong positive emotions between
customer, product and clothing brand (Hines & Margaret, 2007). Successful fashion-brands try to build up this emotional link by
targeted marketing and branding, which is a critical factor for the buying decision of clothes in general.
It will be interesting to see how Smart Clothes will find their spot within the interplay of appealing, aesthetic product design of
the garment, and integrated digital services and technical capabilities. Companies that want to convince customers mainly with
technical innovations and focus on functionality instead of design or vice versa, might risk remaining niche suppliers.
It is to be observed whether the widespread and successful adoption of Smart Clothes for both private and commercial
applications, in contrast to "normal" clothing, will depend on the quality of additional digital services. When it comes to this
balanced interplay of fashion design and technological characteristics, the unobtrusive integration and usability of technology still
is a major challenge for companies. Particularly, dependable power supply, storage, and charging imposes difficulties (McCann &
Bryson, 2009). Yet, several actors show creative approaches to these problems like using the sun’s energy23 or textile-based
batteries24.
In summary, the future of intelligent clothing is not just about combining fashion and technological capabilities, like measuring
a person's biometrics and behavior or displaying the product’s environmental impact. Rather, it is about combining respective
capabilities in a meaningful way to create something valuable for the customer in a holistic way. The real winners in the Smart
Clothes market will be those products that manage, on the one side, to generate value by technical and digital characteristics. On
the other side, products need to be designed in an aesthetically pleasing and easy to use way, also focusing on establishing strong
emotional relationships with consumers.
4.2. Business model
Like all industries that face the opportunities and risks of the digitalization, the fashion industry should reconsider whether the
value of their products for the customer will continue to arise in the same way as today. Inspired by current developments and
possibilities described above (Zott, Amit, & Massa, 2011), new ways of creating value in the fashion industry are discussed
hereafter.
The public and academic discussion about business models increased due to new developments, such as the emergence of
platform-based services like Spotify in the music industry (e.g. Wagner et al., 2015). The term business model has been well
established for a long time and generally describes how value is generated in a company (Voigt , Buliga, & Michl, 2017). Although
there exists no universally accepted definition of the term, the underlying understanding refers to the system of interdependent
activities carried out by a company and its partners, as well as the mechanisms that link these activities to generate value (Zott et
al., 2011). Nowadays, the digitalization is forcing companies to reconsider central elements of their existing business models,
including the value proposition, value chain, or revenue model.
Consumers have steadily challenged the value proposition of companies. Whereas in the past, producers dictated the supply,
today's markets are increasingly influenced by individualized consumer demands. On the one hand, technological changes have
turned consumers into well-connected and well-informed actors. Moreover, consumers exchange information via social networks
or messaging services. On the other side, new players such as Google, Uber, or Amazon are successfully mixing up traditional
markets with innovative digital services and offerings. All this is accompanied by a change in customer expectations: higher
quality, individualized products, prompt delivery and comprehensive pre- and post-purchase services, free shipping, and regular
updates (Johnson et al., 2008). In a nutshell, the digital age gives consumers more power than ever before and demands a critical
reconsideration of the value proposition (Johnson et al., 2008). The consumer is moving towards the center of all value creation
processes, accompanied by organizational and methodological changes.
These changes in the value proposition entail a shift of organizational power structures, since, for example, the IT departments
are becoming increasingly relevant and long-established processes no longer function as they used to do. Start-ups often have the
advantage that their organizations’ design and business model are born digital and therefore changes in their structures or
supply chain are less demanding than for established companies (Chesbrough, 2007). The latter will find it much more difficult to
adapt their value chains, as this requires a profound rethinking of the corporate culture and structure. Agile project management,
horizontal and vertical cross-departmental cooperation, multiple collaborations with third-party vendors, and a trial and error
23 http://www.dailymail.co.uk/sciencetech/article-3823205/Now-S-call-power-dressing-Smart-clothes-use-solar-energy-charge-devices.html
24 http://www.financialexpress.com/lifestyle/science/new-fabric-based-battery-to-power-smart-clothes/965798/
O. Behr / Journal of Technology and Innovation Management 2(1) (2018) 19
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culture are just a few of the necessary aspects for a successful digital value chain and organizational structure (Gilbert, 2005; Hon,
Bloom, & Crant, 2014).
As the digitalization and interconnection of products enables companies to realign and scale their way of monetizing on
offerings, reconsidering the revenue model ultimately follows (Johnson et al., 2008). Shifting costs to third-party providers,
platform and subscription models, pay-per-use and consumption-based billing or freemium models show prominent and
promising use cases in different aspects.
Companies constantly have to adapt to change, but while these transitions used to take years or even decades, automated
information processing shrinks the time span for these processes and requires ever faster and more agile adaptions. The digital age
thus drastically accelerates the necessary learning and adaptation phases. In order to develop a successful digital business model
in the long term, companies must therefore develop and cultivate their ability to learn, be creative and adapt fast (Chadwick &
Raver, 2015; Meinel et al., 2018). In other words, established companies need to change their organizational culture in a way that it
better adapts to the new challenges of the digital era. One cornerstone for this could be the implementation of “new work” office
spaces, following the example of tech companies, such as Google, Facebook or Dropbox. Research has shown that the physical work
environment has a great influence on employee behavior, including creative performance (for a review, see Meinel et al. (2017)).
The changes resulting from the digitalization have affected many traditional industrial sectors for several years and have
yielded interesting business models. In the fashion industry, this trend is evident in new internet-based distribution channels and
platform providers. For many year, however, a large part of the product range has only changed regarding design, material, or
color combinations. Now is the opportunity for companies to rethink their products and business models to disruptively change
the traditional fashion industry.
Fashion companies may reconsider several aspects of their activities. For example, it is questionable whether the one-off
purchase of a garment remains the most promising revenue model. If the value for the customer comes from a service, companies
could, for example, offer products free of charge in combination with an associated ecosystem of services (e.g. nutritional advice or
fitness and lifestyle coaching). The customer pays for the service and is equipped with an intelligent item of clothing. A service
provider such as Weight Watchers could provide customers with a Smart Shirt that measures physical activity and offers
personalized nutritional and training plans. Thus, revenues could be generated over the entire life cycle of the product and could
be expanded and adjusted. This type of service model one could call it Clothes-as-a-Service (CaaS) would not only help to
subsidize the device, but would also foster a long-term relationship and communication between the customer and the brand.
Moreover, businesses need to understand consumers' expectations towards Smart Clothes. It will not be enough to develop
technologically advanced or aesthetically pleasing products that generate quantified data. Companies will need to combine
compelling experiences and services with tasteful designs and digital business models to build and maintain an emotional
connection with their customers.
4.3. Technical issues
Smart Clothes with technological enhancements are mostly comprised of intelligent textiles (Smart Textiles), i.e. materials that
have additional capabilities in comparison to normal textiles. The material base such as cotton, polyester or Kevlar, often contains
electrically conductive fibers and is combined with electronic components such as microprocessors or miniaturized textile-based
sensors and actuators. Those react to certain physical or environmental conditions, collect and send data and can perform certain
actions. Integrated textile solar cells, fluorescent and electroluminescent elements, flexible buttons and haptic feedback systems are
available. Companies such as Toray, Panasonic, Covestro, DuPont, Toyobo and numerous start-ups already supply the necessary
materials. Biomimetic, i.e. the imitation of natural materials such as spider threads or leather in the laboratory, will continue to
drive this field forward.
Sensor technology has developed rapidly in recent years due to an increasing demand for connected items that require smaller,
more precise multidimensional sensors. The most important and driving sensor developments and technological advances include
miniaturization, drastic reductions in production costs and increased reliability. However, more and better sensors also cause an
increased amount of generated data and, due to transfer and processing, an increased power consumption. Energy-efficient
technical components and a reliable power supply are decisive factors for successful products. Approaches towards energy storage
challenges include thermogenerators, i.e. the conversion of body movement into electricity, textile solar cells or inductive charging
possibilities in conjunction with woven and flexible batteries such as fiber super capacitors. By using transmission technologies,
such as GSM, Bluetooth, NFC or RFID, the data is transferred to reception systems. A major technical challenge, not only for Smart
Clothes, but also for interconnected device infrastructures in general, is the heterogeneity of data, protocols and platforms, a lack
of standards and security aspects, which is why these problems should be discussed holistically.
5. Conclusion
The main objective of this paper was to provide a comprehensive overview of emerging possibilities and challenges of clothes
that are characterized by technical and digital capabilities. Discussions and further research about the learnings and implications
from respective developments should follow this introduction. This paper showed how advanced sensory technology, innovative
components, and new ways of communication enable new product offerings with currently unknown capabilities in the fashion
industry. To meet resulting requirements of the future Smart Clothes market, companies should reconsider their business models
O. Behr / Journal of Technology and Innovation Management 2(1) (2018) 19
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in respect to their value proposition, value chain and revenue model. The decisive success of Smart Clothes is still several years far
off. However, it is already worthwhile reflecting on the requirements, challenges, and opportunities of this promising market.
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... One of the core benefits of using digital technologies to innovate business models is the increased capacity to adapt to the "fast" change of economic and market trends during turbulent periods and respond in real-time to both changes in customer needs and values and current industrial challenges. For instance, the platform economy based on the two-sided network or "sellers-buyers' hubs" implies the development of a platform and subscription business model derived from the inherent behavior of digital relationships in a specific market (Caputo et al., 2021;Suseno et al., 2018) with a greater capacity to capture the revenue-cost structure process (such as smart billing, pay-per-use and freemium business models) (Behr, 2018). Therefore, the source of changes lies in digital customers' behavior, which significantly dictates companies' vector of strategic development and, consequently, the potential to gain benefits by capitalizing on digitalization. ...
... The peculiarities and core attributes of digitalization lie in its complexity: digital "interventions" within product manufacturing and business processes demand supportive business model innovations. Moreover, digitally driven changes provide qualitative shifts along each link of the value chain: creation (value proposition), delivery (value chain) and capture (revenue model) (Ehret and Wirtz, 2017;Raichinger et al., 2018;Behr, 2018;Parida et al., 2019). These qualitative changes are connected to the following typical features of digitalization: ...
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... As a whole system, it is currently responsible for exploiting natural and finite resources for the overproduction of textiles and clothing, generating many different waste streams that end up in landfills, using chemicals in the production and manufacturing of fabrics, and exploiting workers in various steps of the supply chain [3,4]. In today's adoption of the Industry 4.0 (I4.0) paradigm [5][6][7][8][9][10], fashion companies could exploit I4.0 technologies to overcome the challenges and reach sustainable development goals (SDGs) and a competitive edge. According to McKinsey [11], the COVID-19 pandemic consolidated the role that digital technology could play in the fashion industry, from embedding digital tools in their workflows and decision-making to accelerating e-commerce consumers' fruition. ...
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... Making full use of digital technology can promote the innovation and development of traditional clothing, combine traditional culture with modern fashion, break through the boundaries of the industry, and create Chinese fashion brands with international influence. Through digital transformation, the charm of traditional costumes will be continued and revitalized [15][16][17][18]. ...
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... Gradually, the fashion and textile industry are applying the principles and technologies of Industry 4.0: the digitalisation industry. These principles are expected to modify and automate fashion industrial processes, with design being a crucial tool to put into practice and improve production efficiency through new experiences by integrating digital technologies (Behr, 2018). These technologies, such as Computer-Aided Design (CAD), 3D tools (printing and modelling), virtual reality (VR), and augmented reality (AR), have been presented as the most common tools, but are still very little used and unknown in the fashion and textile industry. ...
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... Over the years, there has been a increasing need for diversity and inclusivity in the industry, expecting brands to serve different body types: size, shape, skin color, gender, and physical capabilities [11]. Consumers also expect more contemporary and interactive digital experiences in marketing campaigns normally facilitated through augmented reality [12]. Another popular topic also includes sustainability where consumers favor more durable and long lasting fashion alternatives over fast fashion [10]. ...
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