A technology in development called CACD (Computer Aided Clothing Design) can reproduce fashion shows by utilizing computers, and is of particular interest. Considering the growth potential of this area, the purpose of this study is to present the development potentials that CACD technology will bring to the fashion area and to promote the diversity of the fashion industry. This will be realized by identifying the current status of CACD and its reach in the field of Fashion, followed by an in-depth analysis of its application. The methodologies employed in this study are as follows; in-depth study of related literature, field research of business firms, and investigation on Internet data. For the systematic advance of CACD, the development of user-friendly programs for 3D clothing design is of the utmost priority. The four technologies that should be intensively developed to enhance the development of the clothing industry through the utilization and commercialization of CACD are as follows; First, technology capable of performing accurate three-dimension measurement of the human body is needed. Second, technology which realizes automatic pattern formation is needed. Third, the nature physical properties of the material and textile design when applied to pre-formed patterns must be expressed similarly to the real thing. Last of all, an integrative technology which can conduct fast and accurate clothing simulations must be developed.