This is the age of the internet where from business to money transfer everything is dependable on the internet. The study is elaborating the idea of the Internet of Things (IoT) and the ways it has disrupted the e-commerce of the Fashion industry. The usage of the business model innovation of IoT is also explained in this study.
The Internet of Things (IoT) is the concept which is applied through computer devices that almost connect every material thing through internet access (Amit & Zott, 2012). IoT is firmly recognized with RFID (radio frequency identification) as the system of transmission. The term may also include other technological sensors and wireless equipment even the QR (quick response) codes. The fashion retail sector on e-commerce is undergoing some significant technical interference. Due to the adaptive nature of the consumers, their lifestyle is changing rapidly, and they are shopping mostly online. It has become essential for this e-commerce in fashion retail companies to be up to date by using the technological processes and equipment. Currently, the IoT is on the top position of popularity in the industrial market for better connectivity in the e-commerce of the fashion retail industry. In spite of the better connectivity among the physical devices, there are still a few problems that are faced by fashion retailers using e-commerce, which are delaying the process of growth of their companies.
Better Management of Inventory: Through the application of IoT, the management of inventory has become very simple for e-commerce based fashion retailers and their consumers. An ecosystem which is connected is in need to be under observation and the tracking of inventory items. The IoT is disrupting the observing process (Al-Momani et al. 2016). It has also reduced the human errors in the reordering items; however, sometimes, due to some technical issues, there can be errors. Statistics of the type of any product, the name of the manufacturer, date of expiry also the batch ID of the product can be saved automatically without any human involvement. The automated way of enlisting information can easily be disrupted for a technological problem through IoT. The fashion retailers like 3inute.com and Three Wise Men Ltd companies are the leading clothing companies who are now following the IoT. These leading companies are at the verge of facing the problems that are going to come from technical disruption of the IoT connection.
Warehouse: The IoT needs to make a connection between the devices which are not only rearranging the inventory but also expelling overstocked items that are present in the warehouse. Temperature monitoring must be connected so that the change can be made according to the ideal temperature of the perishable items, one of the leading e-commerce brands (Johnson et al. 2009). Amazon uses the warehouse robots for the enhancement of the picking and packing method. These robots can move up to 8 kilometres and can lift weight 300kgs, but the amount is not satisfactory for the business outcome (Business2community, 2017).
Supply chain management: The IoT connection needs to follow the supply chain management to get flexible characteristics of the fashion retail companies. The context of IoT does not give the assurance of smooth movements of goods from one place to another. AbiandJoseph.com is a company's website that is based in Australia that has implied the chain system of IoT connection, and with the help of this application, they delivered their products to their customers as early as possible but can quickly confront the problem of the smooth delivery of the products. The clothing website Acuclothing is also facing some difficulties in supply chain management. They are confronted with some delivery issues.
3 Implementation of the internet of things through business model innovation in the e-commerce based fashion retail industry
The term value proposition is the strategy that the leading companies are using where they are showcasing better features of their products (Fleisch et al. 2015). This method also helps the customer to identify the differences between the same products and how they vary from brand to brand. The value proposition business model innovation sets apart brands such as 3intue and Three Wise Men from their competitors of the fashion retail industry with this method of IoT implementation (Christensen et al. 2016). Value proposition mainly focuses on the relationship between customers and retailers. 3inute.com is a clothing brand in Australia which is using the value proposition model. The company was also providing customers with the latest trends in fashion. Different types of style of clothing can be categorized in a particular form as per the preferences of the customer. This is the guideline for the customer, and the proposition value model provides this. The popularity of any company, especially in the fashion industry, is primarily based on the number of times the customers find their websites.
The easiest way to be found on the internet is to apply the IoT device. 3inute can be found on the internet very quickly almost within a fraction of seconds the website is visible on the computer screens of the Three Wise Men Company’s customer. Acuclothing.com is a website where the company is selling uniforms in different places. The company is also providing its customers with athletic costumes that are trending currently. The organizations have also taken the initiative to do some NGO, that information is also enlisted in the website of the company (Business2community, 2017). There is a panel of question and answers where the customers are getting the opportunities to do queries about any product they are willing to buy (Christensen & Johnson, 2009). The Three Wise Men clothing website applies value proposition method. This brand has given its customers the liberty to get informed about any of their questions concerning their selected products.
Commercialization means the advertisement of new products or terms that any company has come up within their website that runs by the e-commerce payment method and connected with IoT device (Zhang & Wen, 2017). It is widespread for a customer; while they are looking into the website of any brand suddenly unwanted ads pop in. The advertisement is included in the commercialization of the website. The companies can resolve their disruption by applying these strategies. The online organization that mainly focus on their product value and a thin margin scale on their cost of products are getting the more authentic customer for instances 3inute. Leading clothing brand 3inute can adapt this commercial; the organization strategy by rewarding their customer's points on every purchase.
Collecting some locations, they can get discounts on the item they are willing to buy. These features are enrolled on any website with the help of IoT process. This commercial or monetization strategy is used to evaluate the market value of the company and also financial growth (Christidis & Devetsikiotis, 2016). While applying the procedure, the fashion retailing company must go through a few phases. The first phase is called the ideation phase, where a philosophy concerned with the business is shortlisted by the company's leader (Singh & Singh, 2015). Next step is called the industry processed stage in this stage where the company planned how their product going do in terms of finance. 3inute is very professional and has successfully implicated the IoT in their support to grow their business within a short expansion of time.
Leading online fashion companies such as 3inute, Three Wise Men, Acuclothing is using the device of IoT to grow their online connectivity with any physical tools. While using the IoT, these companies are facing few disruptions as well. Implementation of different business model innovation in the IoT has helped to grow these leading fashion companies under the e-commerce section.
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