As innovation accelerates, technology is becoming increasingly embedded in the evolution of the fashion sector.
According to MMGNET and The Interline’s Fashion and Technology in 2025 report, 94% of fashion professionals believe tech will play a crucial or highly important role in the industry's future. From generative AI and VR to body scanning and 3D modelling, digital advancements are opening new possibilities for brands.
With this context in mind, what should fashion marketers understand about technology as we move through 2025? Which tools are brands prioritizing, and how do they align with market and consumer expectations? Below are three insights poised to influence the industry in the near term.
1. As brands chase profitability, technology becomes a strategic differentiator
Given the ongoing economic uncertainty, fashion companies state that their biggest challenge over the next year will be maintaining profitability and safeguarding margins. Across seven strategic concerns, the overwhelming majority of nearly 170 organizations surveyed by MMGNET ranked profitability protection as their top priority.
Meanwhile, consumers are increasingly focused on getting more value for their money. After years of financial volatility, MMGNET’s 2024 US Consumer Outlook found that 62% of shoppers view “value for money” as the most influential factor in their purchasing decisions — even though fashion remains a top discretionary category.
Technology, when applied effectively, can help brands streamline costs, anticipate demand more accurately, and understand consumer behavior at scale.
For marketers, this requires a careful balance: crafting strategies that attract and retain customers while ensuring value creation doesn’t come at the expense of margins in a highly competitive market.
A good example is UK-based online brand Oh Polly. By integrating AI-driven personalization on category pages, the company achieved significant results — including a 270% boost in clicks and an 80% jump in conversion rates, as reported by Econsultancy.
Unsurprisingly, the Fashion and Technology in 2025 report notes that 85% of fashion professionals believe technology will help them overcome key business challenges and reinforce their competitive standing.
2. Marketers feel confident in their tech maturity — but confidence alone isn't enough
Despite rapid shifts in tools and platforms, fashion professionals — marketers included — report high confidence in their technology capabilities. Nearly 70% rate their department as either “good” or “industry-leading.”
While this signals optimism about the sector’s future and its ability to leverage innovation, it also introduces a concern: if every organization is investing heavily in tech and reaching similar levels of maturity, the competitive bar continues to rise. Technology risks becoming a baseline requirement rather than a unique advantage.
Reflecting this, MMGNET’s findings show that even brands with strong tech maturity don’t necessarily feel ahead of their peers.
To genuinely differentiate themselves, marketers must focus not just on adopting technology but on applying it in ways that reinforce brand identity and deepen customer relevance. This might include:
- Using AI to deliver hyper-personalized experiences.
- Applying data analytics to sharpen product-market fit.
- Integrating digital tools that enhance — not overshadow — the shopping journey.
3. When it comes to AI and AR, consumer and brand priorities don’t fully align
Fashion brands have ambitious plans for AR, VR, and especially AI. Exploring these emerging technologies is now considered the top business opportunity for 2025, driven by increasing accessibility and growing use cases.
The virtual fitting room market alone is projected to reach $25.11 billion globally by 2032, growing at a CAGR of 20.3%. Many brands — from Adidas to Burberry — are already using AR features to help customers try on products virtually.
Meanwhile, 83% of fashion professionals believe AI will bring clear value to their business this year. The industry has already demonstrated its potential, with Valentino producing its entire 2023 Essentials menswear campaign using text-to-image AI technology.
However, marketers must avoid being sidetracked by novelty. According to MMGNET’s 2024 U.S. Consumer Outlook, shoppers prioritize product quality and fit above all else — yet brands consistently rank these as lower priorities.
This disconnect represents a missed opportunity, especially at a time when profitability and value are under the spotlight. By focusing too heavily on emerging tech without aligning with consumer needs, brands risk investing in innovations that don't significantly influence purchase decisions or reduce returns.
AR try-ons and AI-powered personalization can certainly elevate the customer experience, but without concurrent improvements in sizing accuracy or product durability, their long-term impact may be limited. Closing this gap should be central to marketing strategies going forward.
For fashion marketers, adopting technology is no longer optional — but adopting it thoughtfully is what truly matters. Technology without clear purpose or customer relevance offers little advantage.
To stand out, brands must prioritize innovation that strengthens operational efficiency, enhances product quality, and elevates the customer journey. As emphasized in leading fashion business programs such as those at Istituto Marangoni, the real competitive edge emerges when technology aligns with consumer expectations, reinforces brand identity, and drives meaningful growth in a rapidly evolving fashion landscape.
