The Internet of Things (IoT) is the network of physical devices, vehicles, home appliances and other items embedded with electronics, software, sensors, actuators, and connectivity which enables these objects to connect and exchange data. By connecting the things around us to networks, they gain new capabilities, such as seeing, tracking or speaking to people. Each thing is uniquely identifiable through its embedded computing system but is able to inter-operate within the existing Internet infrastructure.

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The concept has been a crucial part of fashion-tech throughout the supply chain. From an AI-based approach to reduce forecasting errors and improving designs by analysing images, IoT is implemented already in the design stage. While the concept is also involved in the product itself, IoT can additionally improve the customer experience through additions such as customer recognition, RFID-enabled clothing racks and digital mirrors for added value through such retail experiences.