Innovation is a very interesting but complex concept. It can be analyzed from a variety of perspectives, it can put to fruition in a variety of ways. Innovation in fashion can be classified according to:

• Activities. We can either have innovation as a process or innovation as a product. As a process, innovation relates to creating new, more efficient ways of producing an item, as a product, innovation concern new outputs of the manufacturing process.
  
  
• Extent. We can either have incremental innovation, whereby we improve something that already exists, or we make it better. We could also have radical innovation consisting of a completely new idea, changing the very behavior of consumers.
  
  
• Content. We can innovate a garment, by devising new technical features, we can change its price point, by making it more economical, we can give it a new aesthetic look or we can give it a new symbolic meaning.

However, the viability of these innovation typologies can only be tested in connection to the relationship between fashion as a creative industry, and fashion as a business. Another way to look at innovation is in the dual relationship between action and reaction. A brand should question itself, to understand whether its creative content is an expression of its unique stylistic direction – with no specific intent to interject the market.  In this case, the action of creating a collection is by all means very unique to the firm and can lead to true radical change.

Alternatively, a brand may take into account a variety of industry trends to inform its decisions and think of designs in terms of its reaction.  In this case, the type of innovation will be more likely to be incremental.

What are some trends that fashion firms need to react to?

• Increasing competition. The digital age has lowered access to entrepreneurship, putting more and more people in the position of competing in the fashion industry by creating a persuasive web presence.

• Dynamism in the supply chain. This has put companies with an expensive production pipeline in a position of disadvantage, as web-based brands may grow faster, by managing an asset-light organization.

• Economic Crisis. The 2008 economic crisis has put customers in an austerity mindset, making it harder to sell products that are priced according to a sense of self-gratification, rather than actual functionality or use.

• Social media. The internet has amplified the opportunities and risks associated with customer service. As a result, firms are always in need to closely monitor any interaction with their customers, to avoid creating issues in public relations.

• New retail. Fashion firms need to find new ways to interact with the “last segment of the supply chain” while keeping in mind that retail is the “first point of contact” with their customers. The overlap between online and physical distribution is what is inspiring new ways to sell products in creative and innovative ways.

Finally, as we already mentioned, the trend of fashion sustainability is leading the way, and we’ll discuss it in the next paragraph.