Learn why fashion brands must transform digitally in 2025 or risk closing down. Discover lessons from failed giants and how Deepwear helps you adapt.
In 2025, fashion isn’t driven by fabric alone—it’s powered by data, digital access, and the ability to move at the speed of the internet. Brands that overlook digital transformation aren’t simply trailing behind; they’re closing their doors. From luxury names like MatchesFashion to fast fashion giants like Forever 21, the trend is clear: evolve digitally or disappear.
As a fashion consultancy agency that works with brands at every stage of growth, Deepwear has seen firsthand what happens when businesses adapt early versus when they wait too long. This blog explores:
- What we can learn from the collapse of iconic fashion brands
- How digital-native players like SHEIN are outperforming traditional retailers
- Why Gen Z and modern consumers demand more than just product—they want digital access, speed, and story
- Why startups and scaling brands must lead with a digital-first fashion business model
- How Deepwear helps brands transform from concept to consumer using smart, data-led strategies
- Why the cost of waiting is far greater than the investment in transformation
For brands just starting out or those seeking to expand, the opportunity is now. Building a digital-first fashion business isn’t just smart, it’s survival.
The Fashion Casualties of 2024–2025
The last two years have revealed a harsh truth: brand legacy offers no protection in a digital economy. Household names that once dominated malls, runways, and global campaigns have seen their relevance shrink—or disappear entirely. The culprit isn’t just shifting trends or economic pressure. It’s a fundamental failure to evolve with consumer behavior, digital commerce, and tech-driven retail. Below are just a few examples of brands that paid the price for falling behind:
- Forever 21 filed for its second bankruptcy in early 2025. Despite efforts to modernize, its late and fragmented approach to e-commerce made it vulnerable to digital-first competitors.
- MatchesFashion, once celebrated as a leader in luxury fashion e-commerce, shut down in 2024 due to internal mismanagement and increasing market pressure.
- Esprit, Ted Baker, and rue21 each suffered from an overdependence on brick-and-mortar retail and a sluggish approach to online retail.
- United Colors of Benetton, a cultural mainstay in the 80s and 90s, has quietly declined in recent years. Its resistance to adapting its retail model, branding, and digital infrastructure has resulted in falling relevance, even as newer brands capture the next generation of consumers.
What all these brands had in common was not just tradition—it was a slow response to digital transformation. This has allowed agile players to dominate.
How SHEIN Outpaced Them All
Despite being relatively new, SHEIN has emerged as a global force by leveraging data-driven production, hyper-fast inventory cycles, and a social-first content strategy. The numbers are staggering:
- 44–50% of the U.S. fast fashion market share is now under SHEIN’s belt as of mid-2025 according to statistics from Uniform Market.
- The brand sees over 300,000 new SKUs annually, thanks to real-time feedback loops and predictive analytics.
- In Australia alone, SHEIN hit $1.1 billion in annual sales with a 76% repeat purchase rate.
- By July 2025, the company saw 36% year-on-year sales growth in the U.S., far outpacing legacy players.
SHEIN’s success illustrates how investing in a digital fashion strategy early, from seamless mobile shopping to TikTok integration and predictive AI modeling, pays off in both reach and retention.
Consumer Behavior Has Changed
The modern fashion consumer is not waiting. Instead, they are scrolling, swiping, comparing, and purchasing within minutes. Key shifts include:
- A pivot to mobile-first, social commerce, especially on platforms like Instagram and TikTok.
- Rising expectations for personalization, transparency, and fast delivery.
- Brand loyalty built not just on products, but on shared values and real-time engagement.
- Gen Z’s preference for brands that feel responsive, inclusive, and culturally relevant.
For brands that want to grow or survive, the message is clear: digital transformation in the fashion industry is not optional.
Why Startups and Scaling Brands Must Think Digital-First
If you’re launching a new brand or expanding internationally, going digital first is the smartest and most cost-effective path forward.
- It’s cheaper to scale online than open retail stores.
- A/B testing and customer feedback can be implemented almost instantly.
- Brands can build equity through digital storytelling and influencer collaboration.
- You can reach global markets with precision targeting and smart logistics.
Partnering with Deepwear: Your Digital Transformation Ally
Digital transformation in fashion isn’t just about being online. It’s about embedding agility, data, and creativity into every part of your business—from design and sourcing to storytelling and delivery. Our work equips brands with the structure and strategy to not only survive the digital era, but to stand out in it.
1. Digital by Design
From the first sketch, our product development process is built to meet the speed and flexibility of modern fashion:
- Digital sampling and CAD prototyping reduce waste and accelerate timelines.
- Tech pack creation ensures precision and consistency in production.
- Rapid testing and iteration support trend-responsiveness and market fit.
2. E-commerce-Ready Manufacturing
Manufacturing for the digital shelf means being fast, flexible, and scalable:
- Small-batch options for direct-to-consumer launches or limited drops
- Flexible MOQs and lead times to match campaign cycles
- Sourcing aligned with fast turnaround and trend-driven production
3. From Concept to Clicks
Building a digital-first brand takes more than product:
- Visual assets like lookbooks, catalogs, and 3D renders ready for launch
- Guidance on branding, messaging, and go-to-market timing
- Seamless handoff to your digital or marketing team for full integration
4. Data-Led Production Planning
Our process uses real-time insights to optimize performance:
- Predictive analytics and trend forecasting built into planning
- Inventory aligned with marketing peaks and seasonal trends
- Agile production cycles that reduce overstock and improve cash flow
For startups looking to make a strong first impression or for heritage labels aiming to regain relevance, our team brings the tools, insight, and execution needed to build a future-ready brand. This isn’t just about following trends—it’s about leading them.
Curious how your brand can thrive in a digital-first fashion landscape? Let’s talk strategy, sourcing, and scalable solutions—reach out.
Don’t Wait Until It’s Too Late
The collapse of iconic brands in recent years didn’t happen overnight. It was the result of hesitation, delayed decisions, and outdated systems. In contrast, today’s fastest-growing brands invested early in the infrastructure that allowed them to adapt.
- Waiting to go digital often costs more than starting early
- Customer expectations are evolving faster than ever
- The window for transformation is closing fast
Deepwear isn’t just a digital partner. We’re a global network of fashion experts with 17 offices across key sourcing and fashion capitals, including Bangkok, London, Guangzhou, Ho Chi Minh City, and Melbourne. We combine deep industry expertise with local presence and digital intelligence—making us uniquely positioned to support brands that want to grow globally and responsibly.
Led by founder Thoray d’Haese Sacoor, whose decades of hands-on experience in sourcing, design, and global brand development shape every aspect of our work, we bring proven systems and a forward-thinking mindset to every project.
Whether you’re starting from scratch or pivoting toward digital, we’re ready to help you build what comes next in the future of fashion.
Start building your future-ready fashion business today. Talk to us.
