Cost control takes the lead in fashion tech planning
Technology leaders in the fashion and luxury sector are entering 2026 with a clear priority: controlling costs. A recent study by ERP specialist Deda Stealth, based on interviews with executives from around 100 companies, shows that financial discipline is now guiding digital roadmaps more than artificial intelligence or procurement reform.
The shift reflects a tougher business environment. Ongoing geopolitical tensions and the risk of new US tariffs are putting pressure on margins, making efficiency a daily concern rather than a long-term goal.
What CIOs are focusing on
When asked about their top priorities for 2026, 57.4% of CIOs placed cost reduction at the top of the list. This was followed closely by omni-channel improvement (51.9%) and sustainability and traceability initiatives (46.3%).
The ranking suggests that brands are trying to protect profitability while keeping pace with customer expectations and regulatory demands. Digital investment is still happening, but it is becoming more selective and more closely tied to measurable returns.
Where budgets are going
With spending under tighter control, CIOs are concentrating on areas seen as direct performance drivers. Data and analytics leads the way, attracting attention from 63% of respondents. Many brands see better data visibility as essential for planning, forecasting, and inventory control.
Artificial intelligence follows at 51.9%, though interest does not yet mean large-scale use. Cybersecurity, cited by 48.1%, remains a steady concern as retail systems become more connected and data-heavy.
These choices show a preference for practical tools that support daily operations rather than experimental projects with unclear payback.
Strategy and reality don’t always match
One of the study’s clearest messages is the gap between what CIOs see as important and how well current systems are performing.
In the supply chain, finished-goods logistics scores very high on importance, at 9 out of 10. Satisfaction, though, lingers at 6 to 7 out of 10, pointing to ongoing issues with visibility, coordination, and execution.
The weakest area is supplier collaboration. While considered critical, it earns a satisfaction score of just 4 to 5 out of 10. Slow and fragmented upstream information flows continue to limit responsiveness, especially in sourcing and production planning.
Retail operations show a similar pattern. Physical stores are still viewed as spaces for brand expression, but the tools used to manage them are falling behind. Order orchestration and returns management, long-standing challenges in e-commerce, are rated highly strategic, with importance scores close to 8.5 out of 10. Satisfaction, though, remains below 6 out of 10, reflecting persistent complexity across channels.
AI interest grows, adoption stays cautious
Artificial intelligence is often mentioned as a possible answer to these problems, especially as brands face rising regulatory pressure from measures such as digital product passports and CSRD reporting. Even so, deployment remains cautious.
Only 3.7% of companies surveyed say they have rolled out AI at scale. Around one third are still developing use cases, while 27.8% expect to deploy AI within the next two years. For most, AI remains a controlled experiment rather than a core system.
Skills remain a major barrier
The slow pace of AI adoption is not just about risk aversion. Half of the companies report a moderate to significant skills gap in areas such as data architecture and cloud engineering. Without the right talent, even well-funded digital plans struggle to move forward.
As Luca Tonello, CEO of Deda Stealth, notes, this pressure is pushing brands to rethink their digital foundations. Data management, AI readiness, and supply chain optimisation are no longer optional projects. They are becoming essential tools for maintaining performance in a more constrained market.
A pragmatic digital agenda
The study paints a picture of a sector becoming more pragmatic. Fashion and luxury CIOs are not abandoning innovation, but they are demanding clearer value from every investment. Cost control now frames the conversation, shaping how data, AI, and supply chain tools are selected and deployed.
As 2026 approaches, the winners are likely to be those who align digital ambition with operational reality, improving fundamentals first, then scaling new technologies when the organisation is ready to support them.
