Fashion Forecasting

How Artificial Intelligence (AI) is helping Fashion Retail

Online retail stores are replacing brick and mortar retail stores and will continue to do so for the entire 2020. As the modern day consumer seeks more and more personalization, artificial intelligence empowers retailers to align their products with the expectations of their consumers. Therefore ensuring your retail store is digitally mature using Artificial intelligence enablers will help scale you against your competitors.

Artificial Intelligence (AI) is substituting intuition with intelligence which functions as a capital intensive technology, which yields results in the long run. As per a report by WFMZ-TV, artificial intelligence in the U.S. fashion retail market is driven by the need of inventory management and growing impact of social media in the fashion sector. Moreover, by predicting trends in advance with consumer’s buying behavior analysis and the growth in fast retail fashion is further expected to accelerate the growth of the market in future.

Listed below we have curated some of the top fashion retail brands using AI to their advantage:

    • H&M allows their consumers to interact with chatbot on messenger’s via app Kik . It enables the consumer to select from filters, recommendations, style preferences and set the fashion brand ahead of its competitors even in the year 2016.

 

    • In 2019, Gucci made its debut with artificial intelligence by launching its augmented reality “try-on” sneakers. Gucci launched an augmented reality (AR) feature to its iOS app that lets shoppers/ consumers virtually try on the Italian luxury brand’s product line of Ace sneakers. After directing their smartphone downward, consumers can choose shoe style, shoppers can see a virtual image of the sneakers overlaid on their feet

       

    • Amazon released Amazon Go. It is the first store of its kind where no checkout is required. Consumers simply enter the store using the Amazon Go app to browse and navigate the products they want and then leave. The store is partially-automated, with customers being able to purchase products without using a cashier or checkout station. They launched 21 stores in Chicago, New York, San Francisco and Seattle. Consumers first scan the Amazon Go app when they enter and continue to shop as usual. Cameras and sensors track the items collected from shelves, which are later collected in the consumers cart. Once the consumer is done and proceeds to check out, their cart is checked out automatically with the user’s payment details on file. Thus, the consumer experiences a shopping experience without any queues.

If your brand is looking for ways to incorporate artificial intelligence in their operations, these pointers might come in handy.

      1. Chatbots to assist the consumer
        The concept of omni channels in retail ensures that the retail experience is no longer restricted to the offline store. Chatbots can answer frequently asked queries, suggested products, resolve grievances, and gather valuable data from the consumer. These chatbots can learn from previous data. Furthermore, chatbots are more accurate in handling data in comparison with human intelligence. Burberry, Levis, Tommy Hilfiger, Estee Lauder are some brands who use chatbots.
      2. Effective supply chain
        Artificial intelligence enabled logistics management can forecast demands for products by scrutinizing historical sales, location, buying trends, etc. AI-powered drones for warehouse management can reach difficult corners and automatically update a central database with available inventory in real time. Brands like Zara, Alibaba, ASOS, etc use AI to run an effective chain supply.
      3. Price adjustments
        Retail industry is a price sensitive market. AI provides the brand with valuable information to strategies pricing. Brands can indulge in multiple pricing models, adjust prices according to seasons, competitor’s products and consumers demand.
      4. Consumer behavior and personalisation
        Technologies like bio-metric and face recognition can identify customers revisiting a store and remember their likes and dislikes. According to a report by Boston Consulting Group, organisations that curate personalized experiences by incorporating advanced digital technologies and proprietary data for customers are seeing revenue increase by 6% to 10% — two to three times faster than those organisations who do not use AI. The North Face, Amazon, Burberry, Myntra are some companies that use consumer behavior to their advantage.
      5. Smart product searches
        AI makes the process of product discovery easy for the consumer. Machine learning categories millions of products from different vendors within seconds for a user to select a product and make a purchase. Moreover, the modern day consumer can take any photo in the real world and look for a similar product online by just uploading it. Nordstrom is an American fashion retailer. It advertises its products via Bing ads and bids on keywords. When a user searches for “topshop dresses on sale” , the advertiser keywords “topshop” and “dresses” match several products from Topshop. Apps like Siri, Google assistant, Alexa, Cortana, DataBot, etc are some of the best applications which provide with intelligent product searches.

To conclude, the demand for newer markets is emerging. Especially now as the businesses are hunting for much more effective models to deal with their consumer in a world with Covid and beyond. Digitization has become the new norm. E-tailing is profiting from more traction and businesses with robust ecosystems comprising technology and inventory will benefit from the present day scenario.

Related Articles: The Dynamics of Fashion: How technology will be it’s leading force in 2020

For similar updates please subscribe to our newsletter below

Related Posts
whatsapp