Physical Retailing and digital transformation: How is the fashion industry evolving?

Author: Davide Vitale
Date: 07-11-2025
The existing literature highlights how in the past value chains in the fashion sector were mainly linear and based on a “push” approach. The focus was on the product, and the basic idea was that a superior product in terms of quality and innovation would naturally lead to successful sales.
Digital innovation has made these chains much more complex, creating an interconnected system in which customers, suppliers, and competitors actively and significantly contribute to value creation.
Furthermore, nowadays, many brands choose to adopt a “phygital” strategy, that is, a strategy born from the combination of traditional shopping (physical) and the multiple opportunities offered by digital (digital), aimed at creating memorable experiences and establishing an emotional connection with customers rather than simply focusing on the sale of products.
These premises naturally raised a few questions:
- How far will brands go in introducing new technologies?
- What impact will these have on consumer habits?
- What role will physical stores play in the future? And what about sales staff?
Research Methodology
In order to analyze the impact of digital transformation on the fashion sector (with a specific focus on physical retailing), I conducted a market analysis structured in the following phases:
- Desk analysis: study of the evolution of the fashion sector and its current state of health
- Qualitative interviews: interviews with industry experts and ordinary consumers on the topic of the research
- Distribution of a quantitative questionnaire: aimed at investigating customers’ current consumption habits and the potential impact of new technologies
- Data analysis: through the application of classic segmentation and a conjoint analysis using SPSS software
- Drafting of managerial implications and conclusions
Questionnaire and research sample
The quantitative questionnaire collected a total of 171 responses; after excluding invalid ones, the final sample consisted of 141 respondents, whose main socio-demographic characteristics are illustrated below:
- Gender distribution is homogeneous: 55% female, 44% male, 1% preferred not to answer
- Very young average age: 51% are between 16 and 25 years old
- High education level: 56% have a bachelor’s degree and 23% a master’s degree or equivalent
- Homogeneous professional distribution: 43% employees, 32% students, 13% freelancers, and 14% other
- All respondents live in Italy
It is important to underline that the results of the analyses cannot be considered representative and generalizable for the entire population, given the small number of responses collected and the fact that the sample is mostly made up of Italian students under the age of 25.
Cluster Analysis
The cluster analysis made it possible to identify five different consumer clusters based on their clothing purchase habits:
- The uninterested (20%): individuals who have no particular needs when it comes to buying clothes
- The impulsive (10%): buyers who rely heavily on their own feelings, are not at all influenced by others’ opinions or reviews, and buy a product immediately when they find something that satisfies them, without thinking twice
- The enthusiasts (39%): have higher expectations than average and closely follow fashion trends
- The dissatisfied (13%): attribute little importance to all the variables considered and may be driven to buy more by external and social stimuli than by personal interest
- The rational independents (18%): buyers who want to make decisions on their own, compare the available options, and choose only when they find something that meets their own criteria
The results of the analyses were then reported separately for each consumer cluster.
Analysis Results
The research aimed to focus on the impact of five main technologies:
- Smart mirrors: mirrors that allow you to try on clothes in different sizes and colors without changing
- Interactive fitting rooms: fitting rooms equipped with scanners capable of detecting the items selected and suggesting complementary clothes
- 3D avatars: technology that allows users to view on mobile devices how clothes would look in different sizes and colors, and to get more information about product features such as material quality and fit
- Chatbots and virtual assistants: artificial intelligence technologies capable of supporting and advising customers during their online shopping experience
- Metaverse: virtual reality that can be accessed through the use of headsets
Respondents were asked to indicate which combinations of technologies were most interesting, and how these could impact their future purchasing habits.


Smart mirrors and interactive fitting rooms turned out to be by far the most interesting technologies for the sample of respondents.
Regarding future habits, 4 out of 5 clusters hypothesize that their purchase volumes would remain unchanged or increase slightly, while data relating to online purchases indicate that 4 out of 5 clusters are more inclined toward an increase in purchase volumes.
Respondents were then asked whether they would still need the support of sales staff: 50% of the total sample responded affirmatively, but within each cluster the distribution of responses is very heterogeneous.

Conclusions
The research results lead to the conclusion that physical stores will have a key role in the future as well, for several reasons; above all, the store is an essential element for communicating the brand’s identity. In fact, elements such as the store’s atmosphere, the storytelling of a product, and human contact cannot be replicated digitally.
As for the role of sales staff, its importance will not decrease, but rather undergo a transformation.
The sales assistant of the future will be less of a seller and increasingly a consultant, capable of building emotional connections and guiding the customer through a personalized journey.
This research naturally presents various limitations and for this reason does not aim to offer universally valid results, but it can certainly represent a starting point for future studies, since existing literature still lacks quantitative research on this specific topic.
