DIGITALIZATION AND SRI LANKAN APPAREL INDUSTRY: PROSPECTS AND CHALLENGES

Abstract

The apparel industry is undergoing rapid changes of digitization induced by the latest technological innovations. This dynamic process opened the ways to revolutionize the conventional manufacturing processes and traditional business models. This evolution derives essentially from the need for industrial upgrading, which is achieved through the strategic digital technology integration. The transformation of the apparel industry into a fully digitalized form covers every stage from design and production to distribution, warehousing, and retail paving way for an enterprise disruption led by technology. This paper aims to address the opportunities and challenges associated with the adoption of digitalization in the Sri Lankan apparel manufacturing industry, considering its dynamic context. Accordingly, the objectives are to analyze the current digitalization landscape, effectiveness value and operational efficiency and also to assess the challenges and government policies for supply chain dynamics. This paper adopts a deductive methodology by reviewing the relevant literature and accordingly a discussion and recommendations for future research is provided. The introduction to the industry 4.0 technologies, including AI, IoT and Blockchain contended that digitalization is indeed very transformative. However, it emphasizes the need for developing a digital mindset, encouraging lifelong learning and digitally literate training at all levels in organizations. It is essential that digitalization overcomes the challenges like cyber threats, cultural changes and the demand for seamless integration. Digitalization in the apparel sector does not boil down to mere technology adoption but it entails a mental shift, cultural change and improved data management. A digital mindset is essential for the successful digitization, which involves continuous learning and adaptation that really drives the organization forward. This paper serves as a valuable resource for stakeholders by contributing to informed decision-making in the evolving landscape of the apparel industry's digital revolution. Future research could delve into the long-term socio-economic and 42 SEUSL Journal of Marketing, Vol. X, No. 2, 2025 ISBN2513 – 3071 Page Number 42 - 52 environmental impacts of a holistic digitalization approach, exploring how technologies and a digital mindset contribute to sustainable growth, efficient supply chain optimization, and the preservation of natural ecosystems within the Sri Lankan apparel industry.