Designer Label to Digital Label

Designer label…to digital label
#Born Digital™ will drive explosive
innovation and growth in apparel
In association with
This presentation was extracted from a free E-book you can download in full here:
https://evrythng.com/resources/white-papers/born-digital-ebook

Apparel rules the Web
• Fashion sits at the intersection of culture, lifestyle
and personal identity. Apparel is literally central
to our life.
• Last year clothing and accessories overtook
computing, to become the highest selling
category of goods online in the US.
• In the UK alone, online sales of clothing and
footwear are forecast to reach $26.8bn by 2019.
• The category’s embrace of digital has played a
huge role in this success. But this is just the
beginning.
1
2

Victoria’s Secret
launches ecommerce
site;the brand has
35% of US lingerie
market today
Chanel creates a 3 minute online
film with Baz Luhrman for
Chanel No5 featuring Nicole
Kidman;an instant YouTube hit
(forerunner to 10m+ views films
with Brad Pitt, Marilyn Monroe
and others)
Victoria’s Secret holds online
fashion show, advertised
during the Big Game, and
‘breaks the internet’ with
millions unable to view
Boo.com launches
the most publicized
failure in early
internet history
NET-A-PORTER
launches as a
shoppable
magazine on
the web
As Seen on Screen
(later ASOS)
launches
ASOS IPOs
on London
AIM stock
market
Ralph Lauren
launches online
store and
ecommerce through
polo.com
Ahrendts and
Bailey at Burberry
announce
commitment to be
“fully digital”
Nike and Apple partner to
pioneer connected
apparel with launch of
Nike+ iPod Sports Kit
2000
2004
1998
2001
2006
1999

Victoria’s Secret
develops its Pink
brand into online
community
Kate Spade launches
first major YouTube
video, accompanying
ecommerce
Burberry
Art of the Trench,
social campaign
based on user
content
Warby Parker
launches a direct
to consumer
eyewear
service online
Macy’s
launches its
magic mirror
dressing rooms
Omnichannel
becomes widely
known after an HBR
article entitled ‘The
Future of Shopping’
Gilt Groupe debuts
the flash sales
model, challenger
to designer
outlets
UNIQLO’s online
sensation UNIQLOCK
turns a local Japanese
brand into a celebrated
global brand overnight
Topshop partners
with Facebook to
‘customize the
catwalk’
Gilt Groupe
valued at
US$1bn
Burberry starts using
RFID tags for in-store
interactivity e.g.
digital mirrors
2010
2007
2012
2009
2011

NET-A-PORTER
launches net set,
it’s ‘own social
medium’ and marks
$1 Billion in
revenue
ASOS
passes the
US$1bn
revenue mark
Rebecca Minkoff
goes one further –
buy live during
catwalk show
EVRYTHNG and Avery Dennison connect 10bn
#BornDigital™ products to the web
H&M proves that fashion
championship football ads
can still break the internet
with 1.5bn impressions for its
David Beckham
#covered/#un/covered
campaign
Topshop partners with
Google, increases London
Fashion Week audience
to 4m (vs. approx. 50,000
attend LFW);
#LFW content streamed
live to billboards across
the UK
Burberry announces
end of seasons – buy the
catwalk same day;
debuts collection
simultaneously on
Snapchat, adopts
Periscope
ASOS launches
#DIGIDATING,
a YouTube
dating show
Kate Spade
makes its interactive
store windows
shoppable 24/7
Harvey Nichols
gives tablets to
shoppers to access
content via
RFID tags
Burberry one of the
first to use
Instagram for video
Nike brings ID to
Instagram with
#NIKEPHOTOID
Under Amour
acquires
MapMyFitness app
with 150m users
2014
2016
2013
2015

From doing…to being
• There is still a gap between the Apparel industry
following digital…and being digital.
• Like Tesla and Uber. Like Facebook and
Instagram. Like Apple, Amazon and Google.
• Nike’s + and ID programmes have transformed
sportswear: its DTC sales now exceed $5bn per
annum.
• Macy’s smart changing room mirrors and app-
assisted shopping drove it up 259 places to 16th
in an annual survey of millennials’ favorite brands
(ahead of Converse, Starbucks and Xbox).
3
4

#Born Digital™ means…?
• An apparel item is #Born Digital™ when, at point of
manufacture, it connects to an intelligent, software
brain in the cloud…
• …which can trigger real-time experiences for
consumers, supply chain applications …
• …and valuable new analytics and insights for
brands.
• This lets brands turn all their products into an owned
digital platform for direct consumer relationships
and smarter business operations.
• From here, entirely new business models will
emerge, transforming customer value and the apparel
sector itself.

Coded from cradle-to-cradle
• When a product is #Born Digital™ it has a
unique code that identifies it: not the SKU, but
every single instance of it.
• This code stays with the item from factory,
through supply chain, to retailer, to consumer,
and finally through to the recycler.
• This physical identity also has a persistent
and addressable digital identity on the web.
• Each software data profile represents a unique
physical item. It is updated in real-time based
on what happens to its physical twin, and it can
be programmed and accessed through open
web standards and cloud APIs.
• It can now carry permissions, events,
locations and interactions that associated it
with content, certificates of authenticity and
ownership, washing or recycling instructions,
or the ability to re-order a replacement direct
from the brand.
• All of which can be accessed from the
garment using the nearest digital device, like
a smartphone.

• Avery Dennison’s RBIS division supplies labels
to the world’s fashion, sports and luxury
brands, as well as tags, tickets and packaging.
• Avery Dennison has teamed up with IoT
software pioneer EVRYTHNG, to help brands
digitize their products and connect them to
the web.
• Powered by EVRYTHNG’s IoT Smart Products
software, Avery Dennison and EVRYTHNG are
bringing a minimum of 10 billion individual
items of apparel and footwear into the
Internet of Things.5
The internet of clothes

1. Enhancing the existing use of digital to
engage consumers, share content, sell through
digital channels and gain customer data.
2. Full lifecycle intelligence. From supply chain
through retail to recycling: identify and
authenticate an individual product, collect
better and richer data, leverage this to build
stronger relationships, more efficient operations
and drive repeat sales and engagement.
3. Truly disruptive technologies unlock
innovation at the level of the business model,
lifestyle behavior and concept.
Better. Further. Breakthrough.

“Our belief is data is the new oil. You think it’s a
coincidence Google or Amazon is who you’d bet on?
40% of their revenue is attributed to purchase history
…The companies who will win are those using math.”
– Kevin Plank, Founder & CEO, Under Armour
6

• $28.2bn is spent in the UK alone making
largely irrelevant promotional offers to
consumers, while on average, a woman
shopping for jeans tries on 11 pairs.
• #BornDigital means we can dramatically
enhance and personalize content, apps, in-
store experiences, purchasing and promotions.
• Just one example: ‘Get the look’ apps will be
able to load personalized content straight
from the garment, and swipe a product in
store to immediately assemble complete outfits.
7
Better…brand marketing

• Counterfeits cost European brands alone
€28bn a year and globally represent an
estimated 5-7% of all goods sold.
• …and returns fraud cost US retailers $11bn
annually.
• #BornDigital means that the authenticity and
provenance of every single product is easily
and immediately verifiable.
• The item itself can tell us everything we need
to know for more effective brand protection
and loss prevention.
8
9
Better…brand protection

Better…brand operations
• Tracking the flow of goods through this whole
supply chain enables more accurate,
profitable demand management with
significantly less wastage. And accurate
inventory control is, of course, a cornerstone of
successful omni-channel retail.
• A recycler access accurate information on
textile composition for garments, to recycle
them more effectively.

• Women own on average, in a lifetime, 1,116
tops, 620 dresses, 310 skirts, 372 cardigans or
jumpers, 558 trousers or jeans, 248 coats or
jackets, and 434 pair of shoes.
• Apparel brands pride themselves on
conversational commerce and social media
likes, but how many acquire end consumer
data for a direct, on-going relationship?
• #BornDigital will bridge this gap and unlock
the opportunity in data, to transform it into
relationship gold.
10
Further to…relationships

• Nearly 20% of Nike’s revenues now come
from DTC alone, because the margins on
direct sales are so high.
• As relationships with consumers deepen,
#BornDigital builds entirely new, high value
services into brands…
• …such as reordering from the item itself,
wearables integration (do you run faster in
certain shoes?)…even smart concierge
facilities (your apparel can be booked in for
repair as part of a warranty guarantee)
11
Further to…services

Further to…experiences
• What if your jacket could get you VIP access to
a club or event?
• Your clothes will create a perfect fit model just
for you, based on you input on ‘what fits best at
the moment’, or perhaps selfies.
• The clothing itself becomes a virtual tape
measure, and of course a stylist too …
• From reordering “straight from the shoe”, to
uniquely fitted editions of major brands…this is
the way forward to “Fashion-As-A-Service”

Breakthrough to…individual
• An individualized price requires data about
the buyer, the product and the lifetime value.
All of which can be available instantly for
#BornDigital garments.
• In a few years’ time everyone with a
smartphone will have a personal shopper able
to represent them and interact with the world of
goods.
• Curated clothing? Clothing ‘playlists’?
Absolutely. We will have the same “concierge”
relationships with our clothes as we now have
with a luxury car dealership or a boutique hotel.

Breakthrough to…unique
• Connect your social network identity to the
unique digital identity of a product, and you
take virtual ownership of it.
• This unlocks access to personalized digital
extras, services, content and privileges.
• Decision making about style will no longer be
farmed out to experts or even ‘cool hunters’.
• They will be found in the data: from billions of
user photos and social media tags, and of
course the data from tens of billions of items
carrying a digital identifier in the cloud.
• With apparel #BornDigital, we’re all - as much
as we want to be - fashionistas.

Breakthrough to…ecosystems
• Data from #Born Digital™ products connect
with other smart apps and services via the web,
to create a powerful network effect. Products
can work together in new ways: a connected
washing machine gets smarter by talking to the
shirts and packs of detergent that go in it.
• With 3D printing the apparel item as a digital
code will become even more fully realized, and
will open up design to tailor revolutionary
levels of physical fit combined with digital
personalization.

IoT meets #borndigital
• All this offers a fresh world of challenges for
designers to create product and brand
experiences that are both physical and digital
at the same time.
• These will live in an ecosystem of applications,
cloud processing, payments and of course,
data and analytics.
• Like the generation of ‘Digital Natives’ for
whom connectivity is a natural condition of life,
the future of manufacturing and retail belongs
to companies with products that are #Born
Digital™.

HOW IT WORKS:DIGITAL IDENTITY AND DATA
MANAGEMENT FOR SMARTER PRODUCTS
Avery Dennison’s Janela™ Smart Products
Platform, powered by EVRYTHNG, enables
apparel and footwear brands to digitize their
products at point of manufacture. It does this
by giving every product a unique, item-level
identifier connected to a digital identity data
profile in EVRYTHNG’s Internet of Things (IoT)
cloud-based software. Products that are
‘Born Digital’ in this way can trigger mobile
applications and experiences that drive
consumer engagement and improve supply
chain performance.
Delivered as a highly scalable and secure
Platform-as-a-Service,Janela™ powered by
EVRYTHNG has an out-of-the-box intuitive
and customizable management portal with
dashboard, developer tools and integration
connectors to help brands launch smart
product applications quickly and easily.
Apparel, footwear and accessories can be
enhanced with any physical tags or labels,
which act as digital triggers once they are
scanned by a smartphone or reader.
SUPPLY CHAIN AND CONSUMER
APPLICATIONS
ANALYTICS ENTERPRISE
INTEGRATIONS
BLE PRINTED
ELECTRONICS
SENSORSNFC / RFIDQR
CODE
BAR
CODE
IMAGE
RECOGNITION
29
• EVRYTHNG’s IoT Smart Products Platform
digitizes products at point of manufacture.
• It gives every product a unique, item-level
identifier connected to a digital identity data
profile in EVRYTHNG’s Internet of Things (IoT)
cloud-based software.
• Delivered as a highly scalable and secure
Platform-as-a-Service with out-of-the-box
intuitive and customizable management portal.
• Dashboard, developer tools and integration
connectors help brands launch smart product
applications quickly and easily.
Digital Identity and Data Management

How does apparel become smart?
1. Add Unique Tag Identifiers
The platform software connects with any on-productlabels
or tags, including QR and bar codes, RFID and NFC chips,
printed electronics and sensors.
2. Create Smart Product Identities
Every item and SKU is given a unique,secure identity in the
cloud.Rich individual profiles can be created with detailed
productinformation,such as its provenance,authenticity,
materials composition or destination.
3. Manage Real-Time Data & Program Actions Software
rules are set up in the cloud to define the user experience
when an item is scanned using a smartphone or RFID
reader.Personalized digital contentcan be delivered via
customizable URLs,based on contextual triggers.
4. Build Product Lifestyle Applications
Brands or retailers can create apps that allow users
to scan and instantly identify individual items.
Brand Protection officers can check authenticity,
and consumers can unlock 1-2-1 digital
experiences by scanning the physical item.
5. Analytics & Visualizations
Brands get complete, real-time powerful analytics
on products’ usage and performance,as well as
consumer profiles and behaviors,to help build a
valuable marketing database for future campaigns
and retargeting.Other real-time data unlocks
metrics on supply chain,retail and brand protection
activities.
There are 5 key steps
1. ADD UNIQUE TAG
IDENTIFIERS
2. CREATE SMART PRODUCT
IDENTITIES
3. MANAGE REAL-TIME DATA &
PROGRAM ACTIONS
4. BUILD PRODUCT LIFECYCLE
APPLICATIONS
5. ANALYTICS AND
VISUALIZATIONS

Every interaction with a Born Digital product is captured and stored
in the cloud throughout its lifecycle, from manufacture through to its
recycling – forming what is known as an Active Digital IdentityTM
(ADI).
Adding to detailed product metadata created at its ‘birth’, the ADI evolves
as a dynamic, living profile of that item, collating locations, times, dates,
and details of who has scanned the item, such as consumers, retailers or
brand protection staff. Real-time data collected in ADIs is used to trigger
other applications over the web.
MANUFACTURE DISTRIBUTION RETAIL CONSUME RECYCLE
Active Digital Identity
Crypto-secure ID
Unique URL
Locations
Metadata
Actions
Properties
Bridging the physical and digital worlds
• Interactions are captured and stored
in the cloud, throughout a product’s
lifecycle, forming it’s Active Digital
Identity™ (ADI)
• From metadata at birth, ADIs evolve
into dynamic, living profiles, collecting
locations, times, dates and details of
who the item was scanned by.
• Real-time data collected in ADIs is
used to trigger other applications over
the web.

Endnotes
1. http://recode.net/2016/04/01/clothing-biggest-online-sales-category-comscore/
2. http://www.mintel.com/press-centre/retail-press-centre/top-of-the-online-shops-online-fashion-clicks-with-70-of-brits
3. http://www.forbes.com/sites/greatspeculations/2015/07/09/how-nikeid-is-helping-nikes-push-for-greater-profits/#5783626b48b7
4. http://moosylvania.com/millennials/
5. https://evrythng.com/pressrelease/avery-dennison-and-evrythng-switch-on-the-apparel-industry-with-10-billion-products-in-worlds-largest-iot-
deployment/
6. http://fashionandmash.com/2016/03/15/the-brand-the-brand-the-brand-8-things-to-know-from-under-armour-at-sxsw/
7. http://www.bgja.org.uk/wp-content/uploads/2014/02/Hall-Smith-Regulation-of-Sales-Promotion-in-the-UK-May-20031.pdf
8. http://rbis.averydennison.com/en/home/rbis-products-and-services/brand-protection-and-security.html
9. https://nrf.com/media/press-releases/retailers-estimate-holiday-return-fraud-will-cost-22-billion-2015
10. http://www.dailymail.co.uk/femail/article-2260064/Over-600-dresses-400-pairs-shoes-1-116-tops-No-Suri-Cruise-mean-YOU-Women-558-pairs-
trousers-372-cardigans-lifetime.html
11. http://www.forbes.com/sites/greatspeculations/2015/07/09/how-nikeid-is-helping-nikes-push-for-greater-profits/#5783626b48b7

About EVRYTHNG
EVRYTHNG is the Internet of Things Smart Products
About Avery Dennison Retail Branding and
Information Solutions (RBIS)
Avery Dennison RBIS, a global leader in apparel and
footwear industry solutions, is a $1.5 billion division of
Avery Dennison (NYSE: AVY). Avery Dennison RBIS
provides intelligent, creative and sustainable solutions
that elevate brands and accelerate performance
throughout the global retail supply chain.
Learn more
To find out more visit
www.borndigital.s olutions
Smarter products
come with EVRYTHNG
London . New York . San Francisco
evrythng.com • @evrythng • smarter@evrythng.com
This presentation was extracted from a free E-book you can download in full here:
https://evrythng.com/resources/white-papers/born-digital-ebook
© 2016 EVRYTHNG - All Rights Reserved. Any reproduction strictly prohibited. Various third party trademarks and trade names are used herein and are the property of their respective owners. Some of the trademarks appear for identification purposes only.
Any resemblance to actual people, living or dead, or events, past, present or future, is purely coincidental. The products/concepts discussed or provided are not to be construed as an endorsement of any product or company.

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