Evo’s algorithms help fashion companies to manage Phase 2
This company “bred” by the Polytechnic of Turin provides predictive analysis of market trends and previously identifies the different reactions between luxury and fast fashion markets.
Turin, 27th April 2020
by Natascia Ronchetti
Starting from predictive analysis – to help fashion companies design collections, manage purchases and plan production, tailoring it to demand trends – to the examination of market trends in the most difficult stage, Phase 2; this is the restart phase. With its artificial intelligence-based software, Evo now works alongside fashion houses to accompany them in the resumption of their activities after the lockdown. This is a quantum leap for the young Piedmontese company – it was bred in the incubator of the Polytechnic of Turin – which, using its data scientists (22 out of a total of 45 collaborators) has developed an algorithmic model to support the fashion world in the management of the current health emergency crisis.
“In all earnest, the pandemic has only accelerated changes that were already taking place and that are destined to permanently change the market”, says Fabrizio Fantini, founder and CEO of Evo, with two locations, one in Turin and one in London. The company has about twenty customers worldwide, between Europe, the United States and Australia: among them, in Italy there is the Miroglio and Boggi group (men’s clothing) and the Decathlon group in France. “We are now observing two macro trends – continues Fantini. On the one hand we witness the consolidation of online sales, over which Italy has been lagging behind other European countries and the USA, and is also set to become a strategic commercial channel in our country. On the other hand, local sourcing policies have been strengthened. Those who used to buy in China now face great difficulties, unlike those who buy in Italy and around the Mediterranean. Although it is true that costs are higher here, it is equally true that you can rely on a response speed that becomes fundamental in order to be competitive”.
Thanks to its algorithms, Evo breaks down and unpacks data, starting from the product’s features and drawing from a database that maps 1.2 billion consumers. The software then “metabolizes” them, together with the analysis of the dynamics of the various domestic and overseas markets, and the characteristics of its main competitors. This results in predictive signals on the various market trends, enabling companies to make systematic and competitive decisions. This service is available to companies free of charge at this stage, at least until things return to normal.
According to Evo’s experts, there is already a strong polarization reaction to the pandemic: on one side there is the luxury market and on the other the fast fashion market. The former, characterized by smaller flows of consumers, will find it less difficult to make its business model compatible with the restrictive anti-Covid measures, such as maintaining minimum distances between people.
On the other hand, the latter, hinged on a strong influx of people, exposes more consumers to the consequences of the health emergency. “Resumption for companies operating in the luxury sector will be gradual but easier – says Fantini -, while fast fashion companies will find it more difficult. Hence, they will have to adopt new inventory management policies and rethink their businesses: they will have to be surgical in their procurement choices. Without adapting to the new trends, they run the risk of failure”.
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