December 7, 2023
Embracing Change: How Family-Owned Apparel Decorators Can Thrive in the Digital Era
In an industry as dynamic as apparel decoration, staying ahead of the curve is not just a strategy; it’s essential for survival. The pivot of large-scale production facilities like Printful and the increasing role of digital technologies are reshaping the competitive landscape, presenting both challenges and opportunities for family-owned apparel decoration businesses.
The Evolution Imperative
The competition from Print on Demand (PoD) entities such as Printful is intensifying. Originally targeting influencers for dropshipping merchandise, Printful’s pivot to serving the corporate sector with in-house merchandise stores and scaled production facilities is a significant development. This shift signals a clear message to family-owned businesses: evolve or risk obsolescence.
Digital Transformation: A Must, Not a Choice
MIT Sloan’s research underscores the necessity of digital transformation for family-run companies. Embracing technology is no longer optional; it’s a requirement for competing in today’s business environment. This includes adopting API as a Service (APIaaS), which offers scalability and cost efficiency, such as Sheer Custom’s use of Wilcom’s Embroidery Web API in eCommerce.
The Millennial & Gen Z Factor and the Shift in Business Practices
The generational shift in corporate leadership to Millennials and Gen Z, who favor streamlined, efficient processes, is rendering traditional business methods outdated. This demographic change necessitates a shift in approach for family-owned businesses, which must adapt their channels and custom experiences in order to survive. It is no longer feasible to rely on inter-personal inertia alone to sustain their business.
Leveraging AI and New Technologies
The future of commerce is being shaped by AI and conversational commerce. The apparel decoration industry is no exception. AI’s capacity to optimize operations and minimize carbon footprints is transforming how businesses operate. Companies that adapt to AI and embrace these technologies will be the ones to lead the market creating a significant barrier for new entrants.
The Opportunity for Family-Owned Businesses
Despite these challenges, there is a substantial opportunity for family-owned businesses. The key is to leverage their unique strengths – such as personalized service, heritage, and customer-centric approaches – to differentiate themselves from larger competitors. Emphasizing sustainable practices and aligning with broader societal goals can also provide a competitive edge.
Action Steps for Transformation:
- Adopt a Digital-First Mindset: Start by creating an eCommerce presence and consider integrating APIaaS for greater efficiency and customer engagement.
- Invest in Emerging Technologies: Explore AI and machine learning to streamline operations and offer innovative customer experiences.
- Leverage Your Unique Value Proposition: Highlight your family values, personalized services, and commitment to quality to differentiate from corporate competitors.
- Prioritize Sustainability: Align your business practices with sustainable development goals to meet the evolving expectations of customers and stakeholders.