A Study On The Impact Of Digital Transformation On The Performance Of Apparel Firms

With the emergence of new technologies such as artificial intelligence,cloud computing and big data,digital technology is gradually coming into the public eye,and the human economy and society are entering a new era mainly characterised by data.In 2017,the report of the 19 th National Congress of the Party clearly defined the building of a digital China and a smart society,which was the first time that digital elements were written into a national programmatic document.The State Council proposed in the 14 th Five-Year Plan to "use data as a key element to empower traditional industries to transform and upgrade",and General Secretary Xi further emphasized in the 20 th Party Congress report the need to vigorously promote the deep integration of the digital economy and the real economy,and to promote the digitalisation of enterprises.Transformation.This shows that accelerating the pace of digital transformation is not only a practical need to lead the stable development of social economy and implement national strategies,but also an important support to enhance the innovation ability of enterprises and achieve high-quality development in the new era.As one of the traditional pillar industries of China’s national economy,the apparel industry has gradually fallen into a downturn in recent years due to the impact of the economic downturn,and the transformation and upgrading of the industry has been the general trend.In today’s tough external environment,slowing economic growth and industry downturn,how can garment enterprises seize the opportunity to drive into the fast lane of the digital economy,accelerate the transformation and improve business performance has become a hot issue of social concern.In this paper,we select the leading digital enterprise in the apparel industry,Taiping Bird,as the research object,and study its digital transformation case based on value chain theory,process reengineering theory,power change theory and other relevant theories.Firstly,this paper gives an overview of the apparel industry and identifies the need for Taiping Bird to transform and upgrade in the current context.Secondly,based on the external macro environment and internal development situation of PIL before the transformation,the driving factors of its digital transformation are explored,and the specific layout strategies of PIL to use digital technology throughout the value chain and solve business pain points are analysed.In addition,the analysis compares the financial performance of Anzheng Fashion,which has not yet started its digital transformation,with the financial performance of PIL before and after its digital transformation,and explores the market reaction triggered by this event through the event study method.The paper concludes that: firstly,the digital transformation of Bird of Peace is an inevitable trend in the development of the company;secondly,Bird of Peace has created a closed digital layout of the whole chain,mainly from R&D and production,product operation and marketing and retail,thus realising the change of the business model;thirdly,Bird of Peace has promoted the performance of the company by optimising the layout of online channels,improving supply chain management,promoting internal organisational changes and enhancing customer Thirdly,Taiping Bird has improved its business performance by optimising the layout of its online channels,improving its supply chain management,promoting internal organisational changes and enhancing customer experience.The apparel industry is closely related to China’s economy and the level of consumption,and there is an urgent need to carry out digital transformation to open up the closed loop of the industry chain and seek new opportunities for development.At present,academic research on digital transformation has mostly focused on macro theoretical aspects,with less practical exploration of specific cases.This paper focuses on the apparel industry,and selects Taiping Bird,a company whose digital transformation is beginning to bear fruit,to explore the impact of its digital transformation on corporate performance,which can not only enrich and improve the theoretical research in related fields,but also provide some transformation strategies as reference for enterprises caught in the transition dilemma,and help promote the deep integration of real enterprises with the digital economy.