Exploring Corporate Foresight in the Clothing Industry - A case study of the Swedish clothing industry, exploring the utilisation of Corporate Foresight to enhance Innovation and Innovation Strategies.

Abstract

The clothing industry has undergone large changes throughout recent history, requiring companies to learn to adapt. An increase in rapidly changing styles and the rise of new challenges such as technological development, environmental concerns, and new consumer demands has required clothing companies to employ methods to understand future trends and demands on the market. This report investigates the role of corporate foresight in influencing innovation strategies and innovation development within the Swedish clothing industry. The study explores how corporate foresight enables companies to anticipate market trends, adapt to consumer demands, and innovate proactively. It examines its impact on innovation strategies and incremental and radical innovation in companies. The research has been performed by examining ten clothing companies operating in the Swedish fashion industry. Four companies' data have been collected through semi-structured interviews, and the other six companies' data have been collected through secondary sources. The research revealed that larger companies with access to greater resources excel at leveraging corporate foresight for innovation. In contrast, smaller companies, constrained by shared manufacturing capabilities, face challenges in radical innovation. It was further noted that a company's business model was another contributing factor, which requires different forms of corporate foresight to remain competitive. Market trends such as sustainability were seen to drive incremental and radical innovations across the industry, emphasising the importance of adapting to long-term societal shifts. It was concluded that corporate foresight is crucial for maintaining market relevance. Its implementation varies significantly with company size and business model, particularly between fast-fashion and slow-fashion approaches. However, despite varying circumstances between companies, it delivers necessary information about market factors that influence a company's continued operation in the industry.