Technology & Sustainability: The Two Pillars of the Fashion Industry in 2025
Graduated in Indian Institute of technology, Delhi, Ankit is well-known for his problems solving expertise in creative ways. He has worked on various range of projects across diverse industries and developed strategic performance assessment frameworks.
The future of fashion is no longer just about the clothes we wear, it’s about how they’re created, how we use them, and how they can be recycled responsibly. As we look towards 2025, the fashion industry is embracing a transformation led by technology and the call for being more sustainable. Today’s customers are more conscious than ever, demanding transparency, ethical practices, and sustainable products from the brands they support. At the same time, technological advancements are opening doors to solutions that make these demands possible without compromising the creativity and speed that fashion is known for.
The share of global revenue from the 'Sustainable' segment in the apparel market is expected to grow steadily, increasing by one percentage point between 2024 and 2026. As sustainability becomes an inherent element of design, technology is enabling smarter and more efficient practices throughout the production process and all the way to the point of sale. For brands that embrace these shifts, the future is not just about staying relevant, it’s about creating a legacy of responsibility and innovation.
Let’s decode how technology and sustainability will be a drive force in fashion in 2025:
Technology Revolutionizing Fashion
The influence of technology in fashion has already begun to transform the way brands create, produce, and sell. At the heart of this revolution lies advanced technologies like Artificial Intelligence (AI), real-time supply chain management tools, Enterprise Resource Planning (ERP) and Augmented Reality (AR) & Virtual Reality (VR) techniques. Here’s how technology will revolutionise fashion in 2025:
Artificial Intelligence (AI) in Fashion: AI has become an invaluable tool in fashion, enhancing everything from trend forecasting to supply chain management. A report by Research and Markets underlines that AI-enabled supply chains can increase efficiency by over 65%, reducing risks and lowering costs. By analyzing vast amounts of data, AI helps brands predict consumer preferences with remarkable accuracy, reducing the risk of unsold inventory.
Additionally, AI’s role extends beyond marketing and merchandising—its predictive capabilities optimize production processes, ensuring that manufacturing aligns with real-time demand. Whether through personalized email campaigns, website suggestions, or in-store experiences, AI ensures that consumers feel seen and understood, ultimately increasing conversion rates and brand loyalty. In fact, a report by Accenture found that 91% of consumers are more likely to shop with brands that recognize, remember, and provide personalized offers. Lastly, AI-powered personalization allows consumers to experience shopping that is not only relevant but tailored specifically to their tastes and habits.
Real-time Enterprise Resource Planning (ERP) systems:The integration of real-time ERP systems allows fashion brands to manage inventory more efficiently, improving both speed and accuracy in production. Real-time data monitoring enables brands to track supply chain movements, forecast demand more precisely, and respond quickly to changes in consumer behavior. The efficiency of these systems not only cuts costs but also reduces the industry's environmental impact by minimizing waste from unsold or excess inventory.
The Use of Augmented Reality (AR) and Virtual Reality (VR): Technology will redefine how consumers interact with fashion through AR and VR. AR allows customers to visualize clothing in real time, trying on virtual outfits before making a purchase. It enhances the shopping experience by offering personalized recommendations based on individual preferences. According to a report from Deloitte, 35% of consumers are more likely to purchase from a brand if they offer a virtual try-on experience . On the other hand, VR offers fully immersive shopping experiences, enabling consumers to explore virtual stores or even try on clothes, enhancing engagement and driving sales.
Sustainability as a Fundamental Priority 2025
Sustainability has evolved from a buzzword to a non-negotiable pillar of the fashion industry. In 2025, brands will increasingly turn to eco-friendly materials, such as recycled fabrics and biodegradable textiles, to reduce their environmental impact. Here’s a closer look at how sustainability is shaping the future of fashion:
Rise of Conscious Consumerism : Sustainability has moved from a niche concern to a core driver of consumer behavior, especially among younger generations. Gen Z and Millennials, who are the primary consumers in the fashion industry today, are more likely to make purchasing decisions based on a brand's environmental and ethical practices. A recent survey reveals that 73% of Millennials are willing to pay more for sustainable products, while 66% of Gen Z express concern over the environmental impact of their purchases.
This shift in consumer mindset comes at a time when the fashion industry’s environmental footprint is impossible to ignore. With textile waste reaching alarming levels, 92 million tons of textiles are discarded globally each year. As awareness grows, consumers are holding brands accountable for their environmental impact. Modern-day shoppers affiliate with brands that offer ecofriendly designs, contribute to the environment and are responsibly carrying out duties.
Flexible Minimum Order Quantities (MOQs) and Circular Fashion: MOQs are proving essential in addressing the fashion industry's overproduction problem. By allowing smaller production runs, MOQs enable brands to produce only what is necessary, reducing surplus inventory and minimizing the environmental impact of unsold goods. In addition to MOQs, circular fashion models are gaining momentum as key solutions to the industry’s waste crisis. Circular fashion focuses on recycling, reusing, and reselling garments to extend their life cycle. As a result, the secondhand market is set to grow by 127% by 2026, according to ThredUp's 2023 resale report, outpacing traditional retail.
Investing in Timeless Design and Quality: In the face of fast fashion’s pressures, there is a growing emphasis on high-quality, durable products that stand the test of time. By shifting focus from constant trend cycles to creating timeless pieces that consumers can wear year after year, fashion brands can reduce the cycle of overproduction and disposal.
By 2025, the convergence of technology and sustainability will set new benchmarks for the fashion industry. Brands that embrace innovation and responsibility will thrive, creating products that align with both consumer values and environmental goals. The industry will shift toward models that prioritize longevity, reduce waste, and ensure ethical practices at every stage of production. As fashion continues to evolve, embracing technology and sustainability will not just be a competitive advantage but the foundation for long-term success.
.jpg "Ankit Jaipuria, Co-Founder, ZYOD")
The future of fashion is no longer just about the clothes we wear, it’s about how they’re created, how we use them, and how they can be recycled responsibly. As we look towards 2025, the fashion industry is embracing a transformation led by technology and the call for being more sustainable. Today’s customers are more conscious than ever, demanding transparency, ethical practices, and sustainable products from the brands they support. At the same time, technological advancements are opening doors to solutions that make these demands possible without compromising the creativity and speed that fashion is known for.
The share of global revenue from the 'Sustainable' segment in the apparel market is expected to grow steadily, increasing by one percentage point between 2024 and 2026. As sustainability becomes an inherent element of design, technology is enabling smarter and more efficient practices throughout the production process and all the way to the point of sale. For brands that embrace these shifts, the future is not just about staying relevant, it’s about creating a legacy of responsibility and innovation.
Let’s decode how technology and sustainability will be a drive force in fashion in 2025:
Technology Revolutionizing Fashion
The influence of technology in fashion has already begun to transform the way brands create, produce, and sell. At the heart of this revolution lies advanced technologies like Artificial Intelligence (AI), real-time supply chain management tools, Enterprise Resource Planning (ERP) and Augmented Reality (AR) & Virtual Reality (VR) techniques. Here’s how technology will revolutionise fashion in 2025:
Artificial Intelligence (AI) in Fashion: AI has become an invaluable tool in fashion, enhancing everything from trend forecasting to supply chain management. A report by Research and Markets underlines that AI-enabled supply chains can increase efficiency by over 65%, reducing risks and lowering costs. By analyzing vast amounts of data, AI helps brands predict consumer preferences with remarkable accuracy, reducing the risk of unsold inventory.
More than just trends, technology and sustainability are driving forces shaping the fashion industry’s future with the blend of innovation and responsibility
Additionally, AI’s role extends beyond marketing and merchandising—its predictive capabilities optimize production processes, ensuring that manufacturing aligns with real-time demand. Whether through personalized email campaigns, website suggestions, or in-store experiences, AI ensures that consumers feel seen and understood, ultimately increasing conversion rates and brand loyalty. In fact, a report by Accenture found that 91% of consumers are more likely to shop with brands that recognize, remember, and provide personalized offers. Lastly, AI-powered personalization allows consumers to experience shopping that is not only relevant but tailored specifically to their tastes and habits.
Real-time Enterprise Resource Planning (ERP) systems:The integration of real-time ERP systems allows fashion brands to manage inventory more efficiently, improving both speed and accuracy in production. Real-time data monitoring enables brands to track supply chain movements, forecast demand more precisely, and respond quickly to changes in consumer behavior. The efficiency of these systems not only cuts costs but also reduces the industry's environmental impact by minimizing waste from unsold or excess inventory.
The Use of Augmented Reality (AR) and Virtual Reality (VR): Technology will redefine how consumers interact with fashion through AR and VR. AR allows customers to visualize clothing in real time, trying on virtual outfits before making a purchase. It enhances the shopping experience by offering personalized recommendations based on individual preferences. According to a report from Deloitte, 35% of consumers are more likely to purchase from a brand if they offer a virtual try-on experience . On the other hand, VR offers fully immersive shopping experiences, enabling consumers to explore virtual stores or even try on clothes, enhancing engagement and driving sales.
Sustainability as a Fundamental Priority 2025
Sustainability has evolved from a buzzword to a non-negotiable pillar of the fashion industry. In 2025, brands will increasingly turn to eco-friendly materials, such as recycled fabrics and biodegradable textiles, to reduce their environmental impact. Here’s a closer look at how sustainability is shaping the future of fashion:
Rise of Conscious Consumerism : Sustainability has moved from a niche concern to a core driver of consumer behavior, especially among younger generations. Gen Z and Millennials, who are the primary consumers in the fashion industry today, are more likely to make purchasing decisions based on a brand's environmental and ethical practices. A recent survey reveals that 73% of Millennials are willing to pay more for sustainable products, while 66% of Gen Z express concern over the environmental impact of their purchases.
This shift in consumer mindset comes at a time when the fashion industry’s environmental footprint is impossible to ignore. With textile waste reaching alarming levels, 92 million tons of textiles are discarded globally each year. As awareness grows, consumers are holding brands accountable for their environmental impact. Modern-day shoppers affiliate with brands that offer ecofriendly designs, contribute to the environment and are responsibly carrying out duties.
Flexible Minimum Order Quantities (MOQs) and Circular Fashion: MOQs are proving essential in addressing the fashion industry's overproduction problem. By allowing smaller production runs, MOQs enable brands to produce only what is necessary, reducing surplus inventory and minimizing the environmental impact of unsold goods. In addition to MOQs, circular fashion models are gaining momentum as key solutions to the industry’s waste crisis. Circular fashion focuses on recycling, reusing, and reselling garments to extend their life cycle. As a result, the secondhand market is set to grow by 127% by 2026, according to ThredUp's 2023 resale report, outpacing traditional retail.
Investing in Timeless Design and Quality: In the face of fast fashion’s pressures, there is a growing emphasis on high-quality, durable products that stand the test of time. By shifting focus from constant trend cycles to creating timeless pieces that consumers can wear year after year, fashion brands can reduce the cycle of overproduction and disposal.
By 2025, the convergence of technology and sustainability will set new benchmarks for the fashion industry. Brands that embrace innovation and responsibility will thrive, creating products that align with both consumer values and environmental goals. The industry will shift toward models that prioritize longevity, reduce waste, and ensure ethical practices at every stage of production. As fashion continues to evolve, embracing technology and sustainability will not just be a competitive advantage but the foundation for long-term success.
