Clothing items are some of Brazilians' favorite items when shopping. To give an idea, according to a survey by the Brazilian Service of Support for Micro and Small Enterprises (Sebrae), 6.55 billion pieces were sold in the country in 2023, and the forecast is that the segment's revenue worldwide in 2025 will reach US$1 trillion. Given the strong movement of the segment, it is natural for it to undergo many changes.
“In terms of technology, the initial excitement about the metaverse is generally dying down and the search is for a more realistic use. The trend now is for this novelty to be associated with AI, making technical interfaces invisible, transforming workspaces and reducing the dependence on screens and keyboards. This can be seen in fashion as well,” explains Andrea Rios, sales and marketing specialist, founder ofOrcasand guest professor at the MBA program at the Getúlio Vargas Foundation.
An example of AI use in fashion is Reserva, which developed together with the Brazilian fashion tech of Generative AI Doris, a virtual fitting room on the brand's website. With technology, the consumer can try on clothes using two photos as a basis, and then the pieces are placed in the images. In this way, he sees the clothes on his body. The novelty, in addition to providing convenience for the customer, reduces exchanges and offers a higher online conversion rate.
Generative AI also collaborates in the creation of pieces and collections, predicting trends and identifying consumer preferences in terms of styles, colors, and designs, increasing the success rates of creations and reducing waste. "An example of this can be seen in companies like Renner, with the fastest speed in testing, development, and manufacturing of products," explains the teacher.
Alongside technological evolution in Brazil, the fashion retail sector has also been transforming through mergers and acquisitions. "We had the recent merger of Arezzo&Co with Grupo Soma, which in turn had already acquired Hering in 2020. Arezzo also had previously purchased Grupo Reserva," says Andrea, who also analyzes that the sector has been facing many challenges. "The prospects for 2024 remain challenging, with a tough economic environment and uncertainty, intensified competition with international brands, rapid technological advancements, and the constant shifting of consumer priorities," she defines.
Amidst all these changes, another factor is increasingly becoming part of this scenario: the Brazilian consumer is becoming more and more aware of sustainability and the role of brands. A study conducted by PwC with the Locomotiva Institute reveals that 9 out of 10 Brazilians from classes C, D, and E prioritize buying from sustainable brands and stores, increasingly emphasizing the importance of purpose for companies and customers.
“This consumer concern makes perfect sense, given that the fashion industry is responsible for around 3% to 8% of total greenhouse gas emissions. If nothing is done, these emissions are expected to grow by around 30% by 2030. Given this, there is increasing pressure from society for the fashion industry to mobilize to reduce emissions as quickly as possible. After all, the countries that are expected to suffer the greatest impact are also the most important for the production chain,” says the expert.
With so many transformations on the horizon, the fashion industry in Brazil and worldwide is at a crossroads, where technological innovation, strategic mergers, and the growing demand for sustainability are redefining the rules of the game. Adaptation and resilience will be essential to face the challenges and seize the opportunities that arise. As consumers and businesses move toward a more conscious and digital future, fashion will continue to play a crucial role in the global economy, influencing trends and behaviors. We are just at the beginning of a new era, where technology and purpose walk together to shape the future of fashion.
