Five ways luxury retail can benefit from Generative AI
International Luxury Group (ILG of Switzerland AG)
One startling study by McKinney states that generative AI could add between?US $150 billion to $275 billion?to the operating profits of the apparel, fashion, and luxury sectors within the next three to five years.?
Here are 5 ways luxury retail can reap lucrative rewards from embracing this futuristic tech.
Improved customer service
In the luxury retail space, customer service is (or should be) an art form. This is where AI-powered virtual assistants can be a huge help – they can handle routine inquiries, freeing up human staff to focus on more complex and high-value tasks, while also providing customer service representatives with real-time insights into buyer preferences and previous interactions.
Identify market trends
By analysing a huge array of data sources – including social media, fashion shows, and global economic indicators – AI can cut through the noise and forecast which trends are likely to influence luxury markets in the near future. Armed with this information, brands can then position themselves at the forefront of these trends, ensuring they remain relevant and desirable.
Highly personalised experiences
Luxury is all about exclusivity and personalisation. Once again, this is where AI’s capability to examine vast amounts of customer data comes into play. By understanding subtle nuances in behaviour, AI can suggest bespoke products, tailor communication, and even predict future purchasing trends. This level of personalisation not only enhances customer satisfaction but also builds brand loyalty – that most priceless asset.
Innovating the design process
Far from killing human creativity, luxury experts agree that AI can serve as a powerful tool for generating design inspirations or supporting data analysis – but should not produce final designs or marketing materials without human oversight.
Supply chain optimization
After a nightmare few years with global logistics, Generative AI can optimise supply chain operations by predicting demand, managing inventory, and ensuring that the right products are available at the right time. By analysing historical data and current market trends, AI tools can accurately forecast demand, helping luxury brands avoid overproduction or stockouts.
?
Luxury Retail Advisor
1 个月Insightful