How AI is Changing the Fashion Retail Industry
AI is no new idea and has been making its mark on a number of industries for decades. That being said, its entry into the fashion retail industry is fairly recent. Now it is here, many large companies are creating AI trends and standards for the industry, and whether you like it or not, it is wise to accordingly upgrade your business to remain relevant and competitive.
The Benefits of AI to the Fashion Retail Industry…
- Data Handling
The movement and development of the fashion industry depends largely on the analysis of data. Buying habits, upcoming trends, demographic engagement and financial statistics can all be quickly and efficiently handled, and put good to use, by AI systems.
- Trend Prediction
One of the most talked about AI applications is that of trend prediction. By analysing data, there are a number of algorithms, either in current use or in development, that claim to predict the fashion trends for following seasons. This development is already informing the lines of many retailers such as ASOS and H&M.
- Automated Operation
AI allows you to have automated operation systems. This means that you can run menial data based jobs through an AI system, and use the gained man-power for other things. This not only increases productivity, but opens up your team to more cognitively satisfying and creative tasks.
- Inventory Management
Inventory management is a huge part of the operation of any fashion retailer. Mistakes, oversights and over-ordering can lead to huge financial shortfalls. AI helps to not only eliminate these shortcomings, but to predict what it is you should be ordering and how much. This should lead to a more streamlined stock operation and less monetary loss.
The Importance of AI in the Fashion Retail Industry…
- Financial Streamlining
Although upgrading your operation to include AI can be expensive at the outset, its integration will undoubtedly save you money in the long run. AI eliminates human error; when it comes to data and analysis, it will get it right. This means you will save time and money often lost to mistakes, and that you will be able to fine tune your ingoings and outgoings.
- Time Gains
A huge benefit of assigning a large portion of your workload to AI, such as data entry and calculation, is that it provides you with more time. AI can take care of these in the background, as you and your employees use the man-hours saved to focus on other things, such as strategy, branding and execution.
- Market Competition
The integration of AI may be quite new in the fashion retail industry, but you can be sure, it is here now, and here to stay. In order to keep up with market leaders, it is essential to invest in AI analytical tools. In terms of physical retailers, AI upgrades include intelligent garment tags (garment integrated bluetooth chips), smart mirrors (complete with touchscreen interface) and omnichannel integration (App connectivity). This approach is being spearheaded by companies such as Alibaba.
It is no surprise that Amazon is leading the way in using AI analysis to streamline their business. Amongst Amazon’s AI developments are an algorithm that is capable of predicting trends and designing garments, and an Alexa fashion assistant that keeps track of the garments in your wardrobe and suggests matching items for purchase.
