Katty Fashion is an innovative SME from North-East Romania, founded in 2003, with almost 2 decades of expertise in offering bespoke services of collaborative design, product development, and excellent garment manufacturing of all categories of womenswear for more than 50 EU brands, winner of C-Voucher competition in 2019 and BoostUP Transform CLC EAST EITM Competition in 2020. From 2019, in transition to an innovative and sustainable business model, focused on a bottom-up approach in the development of the most viable techniques/services of zero-preconsumer waste of all resources in collaborative design, product development, and on-demand smart manufacturing, based on the 2 decades of expertise and on 10 years complete development of Fashion Factory of the Future strategic plan. The first stage of transformation has been the introduction of 3D technologies in product development and the launch of new services of zero-preconsumer waste of resources through collaborative design, virtual prototyping, digital validation of styles. The next steps of incremental transformation of the business model to digitally-enabled smart&circular garment manufacturing are the digital twin and CPPS&IIoT backbone of Fashion Factory of the Future