Why Predictive Analytics Matter for Fashion Profitability

In the past, trend forecasting heavily relied on traditional methods like attending runway shows or traveling abroad to identify the latest styles.

However, the landscape has drastically evolved in recent years, with advanced technology playing a major role in its transformation. Now, tools like artificial intelligence (AI) and predictive analytics enable data-driven predictions by analyzing social media, market and trend intelligence, making forecasting faster and more responsive to shifting styles.

Recognizing these advancements, trend forecasting and market intelligence firm Trendalytics is leveraging AI to help retailers make profitable, data-driven decisions.

“Having all these different analytics points and AI to use is really powerful, and it’s a great way to foolproof your brand, make smarter investments, stay more sustainable and understand what the consumer actually wants,” said Kendall Becker, fashion and editorial strategy director at Trendalytics, during a fireside chat with Andre Claudio, staff writer of strategic content at Sourcing Journal. “At the end of the day, data and AI are there to help you, so it’s up to you to see what feels good and how you want to integrate them into your daily operations.”

According to Becker, Google search also plays a key role in trend forecasting. Trendalytics leverages millions of signals from search and social media to identify emerging trends and determine their lifecycle. This capability enables brands to forecast trends before they hit the mainstream, providing a valuable competitive advantage.

Becker noted that social media platforms like TikTok also play a key role in how trends emerge and spread.

“Something we’ve been noticing, both in Google search and on TikTok, is that conversations around the holidays are starting much earlier,” said Becker. “For example, I saw New Year’s Eve outfits trending on our platform as early as October, which I found surprising—especially on TikTok, where trends often feel so rapid and in the moment. These different data points are incredibly valuable for planning your assortment, deciding when to drop specific items and timing your marketing efforts.”

Watch the video above to learn more about the impact of predictive analytics and AI on trend forecasting.