INNOVATIONS IN THE BUSINESS MODELS OF LOCAL FASHION BRANDS AMIDST THE RISE OF DIGITAL TECHNOLOGY

Abstract

Based on a review of previous studies, this paper establishes a theoretical framework for the fashion business model that integrates technology and applies a qualitative research method through case analysis and secondary data. This study aims to analyze how digital technology influences business model innovation among Vietnamese local fashion brands. The research results show that local fashion brands are actively innovating their business models in various aspects. First, they are vigorously expanding diverse distribution channels such as e-commerce, live-stream selling, and a combination of physical stores and digital platforms to better reach consumers. Second, technology is being applied to design and production, notably through artificial intelligence, 3D printing, and modern design software, which help shorten the time to launch new products. Third, businesses are shifting toward digital marketing strategies, using KOLs and social media platforms to enhance brand visibility. Finally, supply chains and inventory management are being optimized through automation technologies and data analytics. Thus, the study not only clarifies the operational transformations of the local fashion industry but also provides strategic direction for businesses to develop appropriately in the digital era. The study also proposes a conceptual framework linking digital technology with four dimensions of business model innovation.