- Different brands and fashion stores make a bet on technology to earn customers and improve sales
- Smart stores are not a luxury but a trend to follow.
- We reviewed different successful examples involving artificial intelligence.
Keywords: Artificial intelligence, technology, smart stores, fashion adviser, VIPO GROUP.
User experience is key in smart stores. Also known as customer experience, it can be improved through innovation, technology and creativity. Hence, the most successful companies apply technological tools including AI to enhance their business strategy.
In spite of the progress strived in online technologies, about 70% of purchases still take place in physical stores. Therefore, innovative ideas are not enough to acquire insights from customers. Operations and user experience must also be improved and sales must be increased. These are the challenges faced today by smart stores.
In many fields, artificial intelligence spearheads customer-centered strategies. It can help in activities as simple as watching television, to more complicated ones such as shopping for clothes.
AI has become an essential element
Over the years, technologies have evolved seeking to ease everyday life. Only in 2019, 75% of the Netflix catalogue options were based on AI. In that same year, 35% of Amazon sales were derived from the use of this technology.
“Applied artificial intelligence is really valuable, even more so if communication is established between customer and brands” as stated by Marc Teerlink, adviser in Intelligent Enterprise Solutions SAP. “Brands tends to pay more for shelves and showcases that have better locations within stores. This digital era requires however to invest and prioritize artificial intelligence applications”, Teerlink adds, according to Digital Magazine.
We will show some successful experiences with Artificial Intelligence, linked to the fashion segment. These companies created a revolution wave that modernized how stores approach their customers and turns large spaces into customizable experiences.
An app that offers exclusiveness
The Alfonso Dominguez brand is an example of innovation seen this year. Their ADN app is available in their online store and chooses clothes specifically for them.
It combines AI and human intelligence. On one hand, the app creates a profile based on a test regarding the customer’s style and information. This profile is then analyzed by a group of fashion advisors who choose suitable clothing items. Afterwards, five items are sent to the customer who tries them on and decides which ones to keep.
“People do not use 80% of the clothes they own, since they were bought impulsively. Get to know yourself better, make less mistakes (in your purchases)” can be read in the application’s advertisement. ADN also includes subscription plans, that change based on the amount of clothes bought monthly or quarterly. This option gives customers an exclusivity in certain clothing items before they are displayed in stores. The subscription fee is reduced depending on the number of clothes purchased.
This sales-oriented technology has become innovative in Europe. It has also beencelebrated since it uses artificial intelligence and adds to the sustainability strategy of the brand.
Virtual reality: Dress your avatar
Yoox is a fashion store belonging to the Net-a-porter group. Over the last year, the company launched the Yoox Mirror tool. An avatar named Daisy assumes the physical features of the customer and tries on items of interest. Hence, the user gets a realistic idea of how the clothes could look on him or her.
However, the most appealing feature of Yoox Mirror is the ability to put the customer’s face on the avatar. This requires to take a selfie and upload it to the app. After three days, the user can see his face and body reflected on the avatar in 3D. This is virtual reality at its core.
The price of each item is also displayed which helps to stay on a budget. The Charged Retail platform from UK stated that this IA app was “magnificent” and that “allows users to express their own style and explore the fashion alternatives in the store”.
With Yoox Mirror and ADN, Adolfo Dominguez evolves its smart stores and user experience is boosted. It is well-known that a satisfied customer translates into outstanding commercial results.
AI-based personal shopper
A personal shopper or fashion advisor is a relatively new role linked to the fashion industry. This person is in charge of giving options regarding clothes and accessories, according to the needs of the customer and recent trends. He also visits the store with the customer and creates customized paths to maximize the available time.
In this segment, the VIPO GROUP has an app that solves the needs of smart stores to get to know the customer and deliver innovative experiences. The technology uses AI and is applied in fashion boutiques to give style suggestions to customers.
First, the user gains enters personal data and interests by interacting with a screen. Then, the AI from VIPO processes the data and becomes a personal shopper. It suggest clothing items and shows their location based on store catalogue. The client can now make an informed purchase and save time while the salesperson retrieves useful information from the interaction. Overall, the information obtained from the interaction can improve the design process of commercial strategies as well as inventory management.
This technology not only allows to obtain data and predict the demand of specific items. It can also guide the customer based on his preferences and promote crossed-selling to enhance single-purchase brand loyalty.
The creation of a smart store is not a matter of luxury. In fact, it is a trend that has more followers every day. It obeys to the need to create user-centered omni-channel strategies and customization alternatives. Hence, artificial intelligence is more present than ever in shopping activities and experiences. This leads businesses to analyze available technologies and choose the most convenient one to reach their goals.
Reference links:
- ADN by Adolfo Domínguez: https://bit.ly/2KZdZr8
- AI: Your New Personal Shopper: https://bit.ly/2VnTy99
- Secret Shopper – Yoox Mirror’s custom digital avatar: https://bit.ly/37wcQPe
CRM TEAM
VIPO Group
