People have always wanted to express their individuality. One way to do this is through fashion.
The fashion industry is one of the largest industries in the world. It was estimated at around $ 3 trillion in 2018, which is 2 percent of global gross domestic product. Much of classic retail and online e-commerce consists of the sale of clothing and fashion items.
In 2010, Amazon took over shoe retailer Zappos for $ 1 billion. In addition, there are large retailers such as:
- and many more
already entered the fashion retail sector.
Although the industry is very established, AI is fundamentally changing it:
- the way fashion companies make their products
- the way fashion is marketed and sold
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AI technologies are transforming the fashion industry in every element of its value chain, such as:
Infographic: Only 5% of companies rely on AI
You can find more statistics at Statista
Help and promotion with the sale
Fashion brands are constantly looking for new ways to sell their goods and create awareness and demand in the market.
More and more fashion brands are using AI and machine learning to:
- optimize the user’s shopping experience
- improve the efficiency of sales systems
- improve sales processes through predictive analysis and guided sales processes
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Fashion brands are also starting to use conversation assistants through chatbots and voice assistance devices. Well-known examples would be:
- Amazon Alexa
- Apple Siri
- Google Home
- Microsoft Cortana
Using conversational interfaces, fashion brands can collect data by:
- Asking customers questions
- Understand customer needs and trends
- Dive deeper into buying behavior
- Suggest related and additional articles
For example, if a customer needs new shoes or new pants, they can simply have a conversation with a smart interlocutor instead of interacting with a website or mobile app.
In dialogue, the customer finds the optimal fashion product or accessory. This interaction ensures greater customer satisfaction and more valuable information for the fashion brand.
In addition to conversation systems, AI is also finding its way into e-commerce and mobile apps. Customers can now take photos of products such as:
- Clothes that they like
- Fashion styles that they want to imitate
Intelligent image recognition systems can then compare the photos with real products for sale.
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In addition, AI-enabled shopping applications open up many new possibilities. For example, customers can take screenshots of the clothes they see online. It then identifies the clothes in this photo and then finds the same outfit and searches for similar styles.
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AI-powered fashion design and manufacturing
With the constant changes in fashion and design, retailers need to consistently keep up with the latest trends and predict consumer preferences for the next season.
Traditionally, retailers base their estimates of current annual sales on data from the previous year. This is not always correct, however, as many hard-to-predict factors can affect sales, such as changing trends.
However, AI-based approaches to demand forecasting can reduce forecast errors by up to 50 percent.
Ron Schmelzer has no position in any of the stocks mentioned. We have translated it for you so that we can exchange ideas with our readers on relevant topics!