2023 is considered to be a year in which generative artificial intelligence and digital technology have developed by leaps and bounds.
Facing the ever-changing market demand, the new digital retail model driven by science and technology has brought more innovation and growth opportunities for enterprises.
In order to continuously improve the service quality and efficiency of consumers and strengthen the emotional bond between brands and consumers, fashion enterprises have strengthened their close ties with Internet enterprises, increasingly moved closer to intelligence and improved digital infrastructure. Optimize the online and offline consumption experience through the blessing of algorithms and platforms.
Consulting firm McKinsey analyzed in the report "The State of Fashion 2024", "With the outbreak of artificial intelligence in 2023, related use cases have appeared in creative industries including fashion. However, in order to seize the value of this revolutionary technology in 2024, fashion enterprises need to go beyond automation and explore its potential to enhance human creative work. "
Relying on artificial intelligence, Victoria’s Secret analyzes user needs and provides customized shopping experience.
Recently, Victoria’s Secret and its company announced the establishment of a strategic long-term partnership with Google Cloud, which will use artificial intelligence and generative artificial intelligence technology to jointly create a more personalized and comprehensive online shopping experience for consumers around the world. At the same time, Victoria’s Secret will also improve the experience of consumers and employees through this initiative, and promote the operational efficiency of internal business.
Relevant data show that official website, Victoria’s Secret has more than 500 million visits every year, and this figure is still growing. Based on this, Victoria’s Secret will make use of new technology to create personalized consumption experience for every visitor as an important task of the company, hoping to bring a brand-new dialogue assistant driven by generative artificial intelligence through cooperation with Google Cloud.
It is reported that the dialogue assistant will be created by Vertex AI, the artificial intelligence platform of Google Cloud, with the goal of providing shoppers with customized product recommendations and practical product suggestions according to personal preferences and life experience.
For this strategic cooperation, Chris Rupp, chief customer officer of Victoria’s Secret, said: "The introduction of artificial intelligence and generative artificial intelligence technology of Google Cloud will not only improve consumers’ online shopping experience, but also give our internal team the ability to promote innovation in various business functions."
In addition to optimizing the experience for consumers, Victoria’s Secret is also actively exploring and integrating the advanced artificial intelligence technology of Google Cloud to further improve its internal operational efficiency. Victoria’s Secret hopes to apply this technology to brand marketing and consumer demand analysis. In addition, Google’s artificial intelligence technology can also be used to optimize the supply chain system, make accurate product demand forecast, and better manage inventory supply. At the same time, it can empower the human resources department and the offline store operation department to formulate more personalized employee induction and training plans.
In this regard, Murali Sundararajan, chief information officer of Victoria’s Secret, said: "The strategic application of artificial intelligence can not only help us to understand the needs of consumers from the data level, but also improve the overall operational efficiency within the company. This artificial intelligence technology will be used in international market development strategy, marketing planning and supply chain system optimization. Through a series of application measures, we can effectively simplify our internal operational processes and better meet the diverse needs of different customers. "
Although generative artificial intelligence is still a new technology, more than half of fashion companies are using it. McKinsey pointed out in the report "The State of Fashion 2024" that 73% of fashion executives said that by 2024, generative artificial intelligence would be their business priority. In the fashion field, 25% of the potential value of generative artificial intelligence is driven by use cases in design and product development.
According to combing, generative artificial intelligence is mostly used in product innovation, marketing, sales and customer experience in the fashion field. Compared with other fields in the fashion value chain, this technology can produce significant results and may be more feasible to implement in the short term.
For example, converting sketches, emotional boards and descriptions into high-fidelity designs; Recommend exclusive products according to consumer profiles, and generate personalized experiences and offers … In addition, generative artificial intelligence can quickly aggregate and perform emotional analysis from social media, and model and simulate development trends from multiple consumer data sources. ……
Integrate platform resources, PumaBuilding a new digital service model
As a member of the fashion industry, after experiencing the era of "search" and "platform e-commerce", the field of sports equipment and apparel has also entered the era of "mobile socialization" with the development of retail digitalization.
Not long ago, PUMA announced that it has reached a cooperation with Tencent. It is reported that PUMA will take Tencent’s global ecology as its position, improve the digital infrastructure with the help of Tencent platform resources, further narrow the distance with consumers, continuously improve the service quality and efficiency of consumers, and strengthen the emotional binding between brands and consumers. Relying on Tencent’s diverse social ecology, PUMA will open up the social media matrix and connect the online and offline global ecology to help PUMA bring a consistent online and offline experience to every consumer and achieve long-term growth of brand power.
"Nowadays, consumer demand in sportswear market is diversified and subdivided, and leading digital technology brings more personalized and differentiated demands to consumers. To this end, we continue to introduce innovative products, upgrade services and consumer experience, and let more consumers feel the charm of sports. " Li Min, general manager of PUMA in China, said, "Joining hands with Tencent is another innovative attempt. Tencent’s ecology covers all kinds of scenes in consumers’ lives, which will bring more localized insights to PUMA, so as to tap the potential needs and interests of consumers. At the same time, relying on digital services that are highly in line with the needs of local consumers, we will better serve the vast number of sports enthusiasts and new generation consumer groups and promote the long-term growth of PUMA in the China market. "
Under the guidance of the brand proposition of "FOREVER. FASTER.", Puma has accelerated the expansion of e-commerce platform-wide business growth, continued to stabilize its sales performance on traditional mainstream e-commerce platforms, and continued to increase its market share, while developing business growth points on emerging social e-commerce platforms. Relevant data show that in the Double Eleven in 2023, Puma’s total e-commerce sales increased by 22% year-on-year. China’s revenue in the first three quarters of last year increased by 16% year-on-year.