“Impact of Innovation Strategies of Clothing Business in Lucena City in the Digital Age”

INTRODUCTION

The effects of innovative techniques on the clothing industry have changed as it moves

into the digital age. The ability to tap into new markets and reach clients around the world was

made possible by clothing businesses that adopted e-commerce platforms and established a

strong online presence. More individuals are shopping online due to a change in consumer

behavior brought about by the digital age. Online platforms allow users to choose their preferred

patterns, colors, and sizes, making purchasing more personalized. Customers may virtually try

on clothing using their smartphones or in-store devices, which eliminates the need for real

changing rooms. The clothing industry is utilizing data analytics and AI to analyze client

preferences, predict trends, and improve their supply chain.

Businesses may make better judgments about product development, inventory control, pricing,

and marketing by studying customer data. The digital age has also pushed clothing businesses to

adopt more sustainable practices. By using innovative materials, recycling processes, and

reducing waste, businesses can appeal to environmentally conscious consumers. In the ever-

changing world of the clothing industry, innovation strategies have taken center stage, allowing

companies not just to endure but excel.

The impact of digitalization on clothing businesses in Lucena City, where the industry has

seen significant growth. Driven by evolving fashion trends and digital technologies, these

businesses have faced the imperative to adapt and innovate. The research objectives encompass

analyzing innovative strategies employed by these businesses, understanding shifts in consumer

behavior influenced by the digital age, assessing the competitive landscape, evaluating economic

and social implications, and ultimately providing recommendations for businesses to thrive in

this dynamic environment. This study recognizes the critical juncture at which the clothing

industry stands, emphasizing the importance of adapting to the digital age for growth and

sustainability while aiming to inform businesses, policymakers, and stakeholders for a thriving

clothing system in Lucena City.

In recent years, the rising dependence on digital channels for business and consumer

communication has made digital marketing innovation increasingly popular and vital. With the

widespread use of digital technologies and the growing online presence of people, businesses

need to adjust to this change in consumer behavior by embracing innovative approaches to

digital marketing. These novel strategies provide companies with fresh opportunities to connect

with their desired audiences, collect valuable data, and maintain a competitive edge.

Consequently, numerous companies are dedicating resources to digital marketing innovation,

integrating it into their comprehensive marketing strategies to stay pertinent and competitive in

the digital landscape ( Peter, M.K., 2021).

of clothing businesses. These strategies empower them to excel in an ever-evolving market by

tailoring their products, expanding their reach online, optimizing operations, and leveraging data-

driven insights. Moreover, these strategies foster customer loyalty through personalized

experiences, enabling swift adaptation to shifting fashion trends. The digital landscape also

facilitates direct customer engagement and bolsters sustainability initiatives. In essence,

innovation strategies serve as the cornerstone for clothing businesses in Lucena City to thrive

and remain adaptable in the face of dynamic industry challenges.

The study on the “Impact of Innovation Strategies of Clothing Business in Lucena City in the

Digital Age” seeks to investigate and understand the dynamic landscape of clothing businesses in

Lucena City, particularly in the context of the digital era. This research is prompted by the

significant changes and advancements brought about by technology and how they have reshaped

the clothing industry.

STATEMENT OF THE PROBLEM

1. What are the innovation strategies employed by the clothing business in Lucena City to

adapt to the digital age?

2. What impact do innovation strategies in the digital age have on the competitiveness and

sustainability of clothing business in Lucena City?

innovation strategies employed by the clothing business in Lucena City to adapt to the

digital age?

SIGNIFICANCE OF THE STUDY

This research would be beneficial to the following:

To the Educators: This study will provide valuable insights to educators, enabling them to

comprehend the impact of innovative strategies on clothing businesses in Lucena City within the

context of the digital age. By understanding these dynamics, teachers can adapt their teaching

methods to better prepare students for the evolving business landscape.

To the Entrepreneurs: Entrepreneurs operating within Lucena City will derive essential

knowledge from this study. It will empower them with a comprehensive understanding of how

innovative strategies can shape and influence the clothing business sector in the digital era.

Armed with this information, entrepreneurs can make informed decisions to enhance their

business strategies.
To the Future Researchers: For aspiring researchers, this study will serve as a valuable reference

point. It will provide a structured example of how to conduct research in this specific area,

offering insights into research methodologies, data analysis, and potential avenues for further

investigation

To the Community: This study can helps in identifying different areas for growth, new markets,

and customer segments. To know about how existing customers would like to see your clothing

business evolve. Gather the information about the consumer opinions and interactions from

different clothing businesses.

SCOPE AND LIMITATIONS

The scope of this research, Impact of Innovation Strategies of Clothing Business in Lucena City

in the Digital Age, encompasses an in-depth examination of the innovation strategies

implemented by clothing businesses operating specifically within Lucena City to thrive in the

digital era. The study seeks to understand the adoption of digital technologies, changes in

business models, and their perceived impact on performance and competitiveness.

However, it is important to note that the findings may be specific to Lucena City and may not be

universally applicable to all regions or industries. Additionally, time constraints may limit the

study’s ability to capture long-term trends.

Foreign Literature

In today’s world it is essential to incorporate technology into marketing strategies and

business development in the Digital Age. The progress made in this field has paved the way, for

the introduction of materials and techniques in design and production processes. Simultaneously

digital technology advancements have unlocked opportunities for fashion. These technological

innovations have greatly assisted clothing manufacturers, brand merchandisers and retailers, in

prioritizing customer choice and service.

According to Abnet, 2015 that points out trends today emerge and fade away quickly in

an environment where brands, celebrities, magazines, bloggers and social media users all vie for

influence, over what is considered fashionable or not. The evolution of technology continues to

shape consumer behavior in ways. The fashion industry has had to adapt to changes, in how and

when consumers exposed to fashion trends both on the runway and through the influence of

media. Fashion marketers are working hard to cater to the generation of savvy individuals who

regularly engage with online platforms. They are striving to create trends that can withstand the

paced nature of real time fashion content.

the fashion cycle. In 2009, the fashion industry began to address consumers' desire for more

information about pre-launch collections and runway shows. Fashion bloggers shared exclusive

insights about collections, sparking a desire for behind-the-scenes fashion knowledge. Social

media technologies are disrupting the fashion world and democratizing access to content

previously limited to the privileged few, allowing consumers to access content they were

previously unable to access.

According to Manish Chandra, founder and CEO of Poshmark, puts it fashion is ripe

for disrupt the democratization of fashion began when non-industry influencers were invited in,

to see behind the scenes and were allowed images to be shared with the mass consumers. New

rules of ‘what is shareable’ were yet to be written and fashion-minded consumers yearned to

know more about the creative process behind the fashion industry various way.

Fashion companies may reconsider their revenue models, considering the value of a service-

based approach. Offering free products combined with associated services like nutritional advice

or fitness coaching could be a more effective revenue model. Service providers like Weight

Watchers could offer customers smart clothing with personalized nutritional and training plans.

Companies must adapt to changes quickly, as automated information processing has significantly

reduced the time required for these processes, requiring companies to be highly agile in their

responses.
 According to researchers (Baines, Fill and Rosengren 2017) Understanding consumer

perception is crucial in marketing, particularly in services marketing, where marketers focus on

service quality expectations due to the intangibility of services compared to products. Retail is

considered a service industry and the focus on delivering quality service is crucial, but the

introduction of new technologies to improve service delivery impacts consumers and their

acceptance and behavior towards these technologies become equally important. The study uses

the TAM model to analyze customer perception and acceptance of retail innovation, focusing on

factors like ease of use, trust, usefulness, enjoyment, and social influences. Results indicate that

consumers accept certain technologies that enhance shopping experiences and loyalty (Pantano,

2014).

The adoption of 3DVD technology has had a significant impact on the supply chain and

customer connections as part of the fashion industry’s digital revolution along the whole value

chain. The usage of 3DVD technical systems, which employ computer-generated images of a

garment or accessory at various phases of production and distribution, affects customers’

experiences and behaviors and presents prospects for the dematerialization of the fashion

industry. Dematerialization, as defined by analysts for a long time, is the practice of using less

materials and energy during the production and consumption stages of finished goods and

services.(Arribas and Alfaro 2018). By utilizing 3DVD technology, the fashion industry is able to

create a nonphysical economy where goods and services exist outside of the physical world and

aid in the dematerialization of the world because they can never be manufactured there.

Additionally, 3DVD technologies are linked to the digital transformation of a number of stages

in the life cycle of fashion items. This enables the migration of some material activities to digital
activities and promotes continuous information flow for better product life-cycle management

(Riedelsheimer, Dorfhuber, and Stark2020; Brynjolfsson, McAfee 2014).

The requisite learning and adaption processes are thus significantly accelerated by the digital

age. Companies need to develop and nurture their capacity for learning, creativity, and quick

adaptation if they hope to create a successful digital business model over the long run. In other

words, existing businesses must alter their organizational cultures to better meet the demands of

the digital age. Implementing “new work” office spaces, emulating tech giants like Google,

Facebook, and Dropbox, could be a pillar of this strategy. According to research, the physical

workplace has a significant impact on employee behavior, especially creative output. (Chadwick

& Raver, 2015; Meinel 2018).

According to Natriona, (2015) The clothing industry is significantly impacted by

innovation initiatives in the digital age. Artificial intelligence, robotics, and other digital

technologies are revolutionizing the market and enabling the creation of “smart products” that

can communicate over the Internet of Things. Through digital simulation, these technologies also

help innovation processes and quicken the creation of new products. (M.Dowling; E.Noll;

K.Zisler, 2019) Additionally, the digital transformation has led to changes in business dynamics,

market structures, and distribution, requiring innovation policies to adapt (D. Guellec; C.

Paunov, 2018). In the clothing industry, digital innovation and co-design are enabling new

models, allowing consumers to participate in product development through interfaces for mass

customization (M.T.S; G.S.B; RC, 2014) However, barriers still exist due to mass production
methods, but digital innovation in production and the support of social networks offer potential

solutions .

In the digital era, adopting innovative strategies is crucial for clothing businesses to stay

competitive and sustainable. New digital technologies like cloud computing, data management,

mobile apps, and analytics have transformed the fashion retail industry, improving supply chain

management and sustainability efforts. Small fashion businesses have also benefited from digital

capabilities, especially during challenging times like the Covid-19 pandemic. Successful digital

transformation involves reengineering and optimizing business processes. Overall, digital-age

innovation strategies are vital for clothing businesses to adapt and thrive.

The retail sector in India ranks as the second-largest industry following agriculture,

contributing to more than 10% of the country’s GDP and employing about 8% of the workforce.

Information technology (IT) plays a pivotal role in shaping the retail landscape, which is one of

the most rapidly expanding sectors in the nation. India even surpasses Russia in terms of its

potential as an emerging market for retail. Innovations in this sector take a multifaceted

approach, with the goal of enhancing the customer experience, optimizing resource and logistics

management, establishing robust technology platforms to adapt to industry dynamics, and coping

with the remarkable growth driven by India’s vast geographic expanse and diversity. Notable

innovations include customer identification using RFID, E-Catalogue-based sales, Mobile Point

of Sale (POS), Digital Signage, and intelligent databases. It’s worth noting that these retail

innovations in India are still in their early stages, with the industry gradually realizing the
benefits of IT. This represents just the beginning of the potential. Additionally, it’s important to

mention that the innovation and deployment efforts in India primarily focus on the organized

retail sector. The evolving landscape of the Indian retail industry presents a significant

opportunity for vendors, akin to discovering a goldmine.(Kshirsagar,2017)

This new reality not only presents significant opportunities for organizations to innovate and

improve their performance but also extends its impact beyond traditional boundaries, affecting

individuals, other organizations, and society at large. However, this reality also poses challenges

for organizations in maintaining their competitive edge, as they have less control over their

operating environment while simultaneously gaining control over certain elements within that

environment. This is why the digital transformation of organizations becomes imperative, as

failing to adapt to this new reality can lead to their obsolescence. In this context, it is essential to

assess how our students research, identify, and propose solutions regarding whether

organizations in Portugal are already experiencing this digital transformation or are cognizant of

the need to adapt to it. The primary objective of this educational research is to evaluate and

compare the current level of digital adoption, categorized according to prevailing technological

aspects (core pillars and innovation accelerators), as well as the future priorities of Portuguese

organizations in implementing digital transformation. (Pereira, Durão, Fonseca, João, Ferreira,

Moreira)

According to a report from Channel Asia Singapore, as of June of this year, the nation

offered more than 5,000 positions for prospective IT specialists in the domains of digital business

and cloud computing. For their digital platforms, the German software giant SAP alone is aiming

to fill 75 roles this year. According to SAP Philippines Managing Director Edler Panlilio during
the recently finished SAPPHIRE NOW and ASUGa (Americas’ SAP Users’ Group) Annual

Conference in Florida, the business is still optimistic about promoting inclusive software

solutions in the nation. Digital, like the Fourth Industrial Revolution’s core philosophy of

integrating technology into our daily lives, is a path forward for businesses. With the advent of

eShopping Platforms, large corporations have already filed for bankruptcy in 2018. Even major

newspapers in the Philippines, for example, are undertaking an attempt to migrate their articles to

online circulations because of rising costs and changing demands. Businesses and brands can

make their communities through the use of Social Media Platforms as part of Digital Marketing.

Local

According to Hoopwood (2019) As the Philippines undergoes a digital

transformation, it’s evident that opportunities for digitizing business platforms are on the rise. It’s

only a matter of time before both large locally-owned enterprises and micro, small, and medium

entrepreneurs shift towards a more online business environment due to the increasing

accessibility of technology.According to a Channel Asia Singapore report from June of this year,

there are over 5,000 job openings in the digital business and cloud computing sectors for aspiring

IT professionals in the country. German software giant SAP, for instance, has 75 positions

available for their digital platforms that they aim to fill within this year. SAP Philippines

Managing Director Edler Panlilio emphasized the company’s commitment to promoting

inclusive software solutions in the country during the recent SAPPHIRE NOW and ASUG

(Americas’ SAP Users’ Group) Annual Conference held in Florida.

newspapers, it’s emphasized that in the current business landscape of the country, the adoption of

digital technologies should initiate from the top, starting with leadership. This implies that

leaders themselves need to undergo a process of digital transformation. This transformation goes

beyond the acquisition of modern technology and its implementation in the workforce. It

involves digital leaders being consistently active across various digital platforms, fostering open

lines of communication, and cultivating a workforce that is adaptable and flexible, among other

factors. Essentially, leaders in the digital age should not just use digital tools; they should fully

integrate digital practices into their roles. This becomes especially significant when considering

the implementation of more flexible organizational structures, which may involve interactive

working arrangements for both employers and employees.

A recent survey indicates that Southeast Asia is leading the world in mobile internet usage, with

the Philippines topping the global list. People in the Philippines spend an average of 10 hours a

day online, making the country highly attractive to investors due to its business potential. As a

result, digital marketing in the Philippines continues to experience significant growth.

Utilizing social media for digital marketing empowers your business or brand to establish its own

online community. Platforms such as Facebook, Instagram, Twitter, and more offer reliable

means to introduce your business to a wide audience, potentially turning them into dedicated

fans and loyal customers. Whether on social media or your customized website, where can share

photos and videos of the products, provide business updates, and showcase client reviews.

Consistent content posting fosters a perception of active engagement with the brand among

customers.