Strategic Fashion Marketing

This project examines the potential of artificial intelligence (AI) in the fashion industry, specifically for New Look. It explores the macro trend of AI, its drivers, and its impact on consumer behavior. The project includes a consumer analysis, an innovation audit, and a proposal for implementing AI solutions to enhance New Look's brand strategy and customer experience.

Strategic Fashion Marketing
Consultant

EXECUTIVE SUMMARY
Artificial intelligence is method of making robot which is computer controls along with
intelligent software thinks similarly to humans. AI contribution to overall digital transformation
of business. It provides business along with decisions are informed on better aspect for driving
top-line growth and to deliver meaningful experience for consumers to follow the path. It is a
single macro trend as increment in artificial intelligence. It had been articulated that certain
volume of interaction about consumer is expected for gleaning important patterns and insights
for gaining high and huge transformation.

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
Artificial intelligence as macro trend...........................................................................................1
Trend forecasting framework with application of consumer trend canvas..................................1
Evidence of drivers of Artificial intelligence in retail.................................................................2
Validity of trend of artificial intelligence....................................................................................3
Opportunities of fashion retail brands with application of AI in effective aspect.....................11
PART 2..........................................................................................................................................12
Assessment of New Look with brand appetite in context of risk and innovation.....................12
Proposal rationale.......................................................................................................................13
Recommending appplication AI with its brand.........................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Artificial intelligence as macro trend
Artificial intelligence is replicated as major driver on basis of digital transformation along
with rapid advancement in technology which impacts business operations and strategy,
workforce along with customer interaction as well. These all are considered as broad impact and
it will be continued for business to up bring technological advancement. AI will be referred as
standard in solutions and it will lay less focus on glitz and glamour on basis of machine learning
and huge focus on embedded AI contribution to overall digital transformation of business. It
provides business along with decisions are informed on better aspect for driving top-line growth
and to deliver meaningful experience for consumers to follow the path. It is a single macro trend
as increment in artificial intelligence.
Trend forecasting framework with application of consumer trend canvas
Basic need
 In the present scenario, group of consumers are directly influencing needs of consumers
on basis of recent trend. Ultimately they are driving the alterations in basic needs of
human along with desires (Artificial intelligence, 2018).
Drivers of change
 It has been observed contribution of AI in present scenario. The ethics and expenses of
AI are ensuring about absence of technology for widening inequality or worsening social
injustice. For the purpose of striking balance and to inject humanity in developed
machines. The main driver of changing is time saving along with attractive creativity.
Innovative potential
 In the present scenario, companies are selecting to move away from traditional methods
of shopping with application of automation technology as a vital tool for experience of
buying.
 It might pair the workforce with high tech machines like robotic arms, 3D printers along
with computerised knitting.
 The digital designs could be tweaked for purpose of customisation.
Emerging consumer expectations
 Consumers want AI to be specified as human-like or voice of human is highly welcomed
due to handling capability for holding sensible conversation.
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 Customers has high expectations for companies to be transparent as they want to get
information that they are contacting human or not.
 To deliver unique experience along with personalize content for every consumer to both
anticipating and meeting their expectations (Applications of Artificial intelligence in
fashion, 2018).
 The transparency is about openness on basis of structure, purpose and underlying actions
of this AI used for process, search and to deliver information.
 AI helps in extracting insights which can never be introduced with traditional data mining
techniques as it plays fair and treating with same.
Inspiration
 Burberry is British luxury fashion brand which has presence of numerous clothing stores
located around the world. It is considered as first retailer for introducing AI to this
fashion industry. It had used big data and AI for boosting customer satisfaction and sales.
 Zara is Spanish fashion house which has belonging to Inditex group has created
programmed with objective of speeding up in process of pick up in store where items are
collected by robot through stock rooms and handed to consumers.
Who
 It has been extracted that older generations are not open to AI but on the contrary,
younger consumers are highly satisfied with combination of AI and human interactions.
Evidence of drivers of Artificial intelligence in retail
In the present scenario, artificial intelligence is highly prevalent on daily basis as its
adoptions is raising in different areas such as autonomous vehicles and digital assistance. It had
gained high interest of retail sector as companies and brands with rapid adaptation of technology
along with proper realization of advantages of automating its operations. It had reflected positive
shift in specific retail sector with context of improving overall operational and functional
efficiency. The combination of big data on basis of retail and natural language interface along
with machine learning. AI is enabling best and interactive consumer experience and allows
transformation in prior process of customary and involvement of retailers in task of aggressive
customer management (Ingrand and Ghallab, 2017).
With context of retail sector, AI is expected for driving critical decisions about business
to foster e-commerce, product life cycle and marketing management via transitioning operations
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of business through data to particular insights for purpose of valuable actions. The major factor
which is driving the AI's demand has been rapid emergence of worldwide e-commerce. It has
encouraged organization for enhancing customer experience. Retailers get in touch with
consumers at personal level and get involved with team via deeper interactions and to enhance
the brand value.
Globally, Europe and North America has witnessed huge demand for solutions of AI in
retail sector. The market is expected for witnessing fast growth in Asia-Pacific during the
prediction of period because of high growth opportunity on basis of retail industry. For instance,
British luxury fashion brand as Burberry was among first retailers for application of AI in
fashion industry. It had given positive impact as 50% increment for repetition of consumers after
announcement of programme of customer management.
Validity of trend of artificial intelligence
Artificial intelligence will give work efficiency without involving human beings so it will
decrease the error and probability of accuracy will be raised. It will help for fostering the
decision making process and carry out for quick action. It is replicated as controversial topic
along with subject of scrutiny as there is absence of surety that it is definite path or certain. But
there is prediction that 70% growth had been attained in value of business. Further, machine
learning would directly aid and empower fashion industry. AI would be used for raising
efficiency in various corporations along with capability of replacing particular workload.
The combination of big data and sophisticated models of market would lead to accuracy
about different goods. In the similar aspect, these models will decrease operating risk and will be
more efficient and stable within ecosystem. Hence, it is predicted that this trend will dial-up tone
of 90s similar to the best connectivity and would be continued for successful business leader
track and for implementation as well (Moravčík and et.al., 2017).
Evolution of Artificial Intelligence and timeline
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Illustration 1: Evoluation of AI
(Source: Copeland and Reynoldson, 2017)
It is divided in three stages such as artificial narrow intelligence (ANI), artificial super
intelligence (ASI) and artificial general intelligence (AGI). The first stage is ANI which
represents limited scope with restricted intelligence as single functional area. Next stage is AGI
which is advanced level and covers more than single field such as power of reasoning, abstract
thinking along with problem solving as these are par with adults. Further, the final stage of
explosion of intelligence where AI has surpassed human intelligence across every fields.
The transition through first to second stage has taken high time but currently it is
completing whole transition to AGI stage where intelligence of machines are equal to humans
with absence of small attainment.
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Illustration 2: Timeline of Artificial Intelligence
(Source: Yamins, 2017.)
Questionnaire for consumers of New Look
Demographic information
Name
Age 14-22 23-46 47-52 53 and above
Average income
1 Do you think artificial intelligence can took over the world
Yes
Might be
No
2 Did you experience Artificial intelligence?
Yes
No
3 Do you agree that artificial intelligence regular life makes easier?
Strongly agree
Agree
Neutral
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Disagree
Strongly disagree
4 Do you think that result of industries and business are enhanced through AI?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
5 According to you, AI could be more creative for satisfying customer experience?
Yes
No
6 Do you agree that AI would lead to development of fashion sector?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
7 As your view, AI could replace humans or not in fashion industry?
Yes
No
8 On basis of above question, specify reason of your answer?
Theme 1: Regular life is easier with application of articial intelllgence
Particulars Respondents Percentage
Strongly agree 8 26.67%
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Agree 10 33.33%
Neutral 5 16.67%
Disagree 4 13.33%
Strongly disagree 3 10.00%
Total respondents 30 100.00%
Interpretation: The above graph is depicting the responses given by consumers about that
their regular life is easier or not wiith application of artificial intelligence. It could be clearly
viewed that majority of people are agreeing that their life is easier with AI. In the similar aspect,
16.67% are neither agreed nor disagree which signifies there life did not impacted from AI. On
the contrary, 13.33% disgaree with this statement and 16.67% strongly disagreed.
Theme 2: Outcome of business and industries are enhanced
Particulars Respondents Percentage
Strongly agree 10 33.33%
Agree 8 26.67%
Neutral 6 20.00%
Disagree 4 13.33%
Strongly disagree 2 6.67%
Total respondents 30 100.00%
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Interpretation: The above theme is stating responses about result of industries and
business has enhanced with artificial intelligence. Here 33.33% responses were strongly agree
about effective outcome and 26.67% were agreed. On the contrary. 13.33% respondents were
against the statement and 6.67% totally disagreed. In the similar scenario, 20% responses were
on neutral aspect.
Theme 3: Satisfied customer experience
Particulars Respondents Percentage
Yes 22 73.33%
No 8 26.67%
Total respondents 30 100.00%
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Interpretation: The above theme is specifying customer experience on basis of artificial
intelligence where majority of approx 73% were satisfied but on the contrary 26% were not
satisfied.
Theme 4: Development in fashion industry
Particulars Respondents Percentage
Strongly agree 7 23.33%
Agree 9 30.00%
Neutral 8 26.67%
Disagree 0 0.00%
Strongly disagree 6 20.00%
Total respondents 30 100.00%
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Interpretation: The above theme is stating that artificial intelligence helped in upbringing
about development of fashion industry. The most interesting responses had been recorded that
nobody is disagree with this development but 20% were strongly disagreed. In the similar aspect,
23.33% were strongly agreed and 30% agree with this development in fashion industry.
Discussion on Consumer Analysis
From the above analysis of consumer of New Look, it had been articulated that numerous
people are agreeing with artificial intelligence as it will make easier life, development in
business and industries as well. Further, it had also signified that consumers will be highly
satisfied with activity of artificial intelligence but old age people are totally disagreed with this
concept because of lack of technological knowledge (Wong, 2018). It has been suggested that
old generation is not satisfied with application of AI because they are not friendly with
technology, so innovation will be adopted by considering need of young generation. On the
contrary, NewLook should not be complacent because technological advancement might lead to
success in increment aspect.
Innovation audit of Artificial Intelligence in fashion
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Illustration 3: Value from machine learning
Illustration 4: Trend of Artificial intelligence
As a fashion industry, retail outlets are replicated as essential contribution about business
approach. It has extracted smart balance among physical and online stores of NewLook. It has
been assessed that AI will attain growth but this present scenario is full of technological
advancements so to get this increasing position AI should not remain complacent.
Opportunities of fashion retail brands with application of AI in effective aspect
There are numerous opportunities for fashion retail brands with context of artificial
intelligence as everybody is buzzing about this only. The whole industry is in fear of AI about
transformation of their jobs. On the contrary, it is embracing inevitable alteration. There are
presence of different discoveries with its advertisements like chatbots and visual search will
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make us in thinking that AI has capability for solving each problem. It had been predicted that
prominent visionaries has shared dreadful vision related to AI's future. There is expectation for
increment in retail market size through 5 times till year 2022. In the present area, the adoption of
AI in retail is about 20%, 75% of various fashion retailers plan for investing in AI in year 2019.
The AI is replicated as important tool for fashion industry as it drives innovation and might
expand the gap of income among firms which are performing highly along with their
competitors. The most famous example could be evaluated for performance through
implementation of AI is of British luxury fashion brand as Burberry. It is replicated as one the
first retailer for using AI in fashion industry. In the form of outcome, it had given 50%
consumers repeated to visit and purchased the product.
In the present scenario, fashion industry has lot on plates but absence of time to spend
hours for relevant outcome with appropriate fit about right to business requirement. For the
purpose of integration in brand of AI there is requirement of realising appropriate business value
such as adequate among AI and huge expertise about sector. The better opportunities regarding
fashion industry is related to transformation as it could augment capability of team for surfing
wave of alteration in proactive format rather than behind lagging. Hence, AI will be replicated as
game changer for different organizations on internal aspect and similar to internet was decade
ago (Thomassey and Zeng, 2018).
Sustainability in Artificial intelligence
In the present scenario, every consumer is moving towards sustainability as application of
sustainability at early stage helps in bringing important for medium term. It will gain complexity
along with sophistication along with excellent opportunities for innovation and efficiencies.
Various innovations would be allowed for significant progress on most difficult social and
environmental problems which are faced through human. New-look will be coming in grip with
opportunities of sustainability and risk through AI.
PART 2
Assessment of New Look with brand appetite in context of risk and innovation
It had been assessed that retail industry had thrived better customer experience, best
choice and advantage on basis of buyer. There is presence of alternative offering which will cut
its costs and proves businesses tempting. The new look will be using AI as it is very pragmatic
and useful but on contrary, it has potentially negative ramifications like direct lead to downfall of
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interaction among sellers and buyers as it damages creativity which comes along with operation
in fashion industry. In the similar aspect, it has presence of worrying consequence is related to
numerous jobs might be destroyed.
However, it has been assessed that human skills, creativity and innovations could not be
replaced by artificial intelligence But in the present scenario which is dominated from digital
tools, it has absence of importance for machines and human for complementing and
collaborating with each other. Although consumer habits and tech trends will be altered but
personal touch is always highly preferred so New look must consider this aspect. Further, as
technology will be continued for raising agility with customer service and top line performance
through lowering cost, than it seems that fashion industry such as New look and artificial
intelligence are appropriate fit.
Evidence of risk tolerance
AI could be considered as risk to NewLook as it is fashion street brand as its risk will
alter its whole process of design and production. There is example of Burberry, but in this similar
context other designer brand have failed implication of AI because of speeding production
process. Generally, brand has to substitute inefficiencies in process of production, AI will
increase critical function and catches legacy brands. NewLook should try to brand of risk move
and can navigate its transition in the smartest aspect.
Diffusion of innovation bell
Interpretation: It expresses ideas which are spread among different groups of people. It
always centred condition with increment or decrement in innovation. In the trend of AI, it has
spread innovators but majority is sweeped. At the age of 1st step, there was introduction so it was
increasing because of early adopters had gained success along with maturity of approx 34%. In
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the similar aspect, 34% as late majority of adopting AI then it belongs to maturity where
laggards get disadvantage and known as conservative and technological advancement lead to
decline.
Proposal rationale
The fashion industry has attained growth by 5.5% in past decade as per McKinset Global
Fashion index. Along with success it has also faced various challenges such as growth of sales
was slows by approx 3% but fashion companies has innovated themselves in innovative aspect
internally for the purpose of reshaping the industry such as fashion cycle shortening. The
presence of Email marketing tools for fashion industry has provided personalized messaging and
targetted different segments like inactive or regular shoppers along with abandon carts. There are
different organizations which had attained success with implementation of AI in their business
such as:
Nike: This organization has increased $25 million as it had involved staking up 40 pieces
of material for creating shoe upper as process which has taken human worker for arranging for
20 minutes.
Stylumia: It is a stratup of fashion intelligence which analyses and derives actionable
intelligence through different data sources which is unstructured and application of AI in
advance along with computer vision. The major source of intelligence is replicated as images
along with data of behaviour of user and textual description on social media (Helbing and et.al,
2018).
Recommending appplication AI with its brand
Newlook is a high street brand which is not performing well, so from above analysis it
will use application of Artificial intelligence in its company for attaining success. It will design
sales assistant as software for automating and enhancing sales operation with process of
determining and conversing with internet lead. With the given information, consumers will be
given a gift recipient along with software tailors gift recommendations with proper comparison.
These process of feedback will help in accomplishing customer need and requirements with this
brand.
Artificial intelligence will be used through Newlook as it is fashion street brand, as
Burberry has developed AI and attained success. It could introduce AI at small scale and
marketing campaigns with various visuals and innovative retail concept.
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CONCLUSION
From the above report it had been concluded that AI is very important concept especially
for fashion industry like Newlook. It will be benefiting both consumers and business as well. It
had been articulated that certain volume of interaction about consumer is expected for gleaning
important patterns and insights for gaining high and huge transformation.
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REFERENCES
Books and Journals
Copeland, D. and Reynoldson, L., 2017. How to avoid'summoning the demon': The legal review
of weapons with artificial intelligence. Pandora's Box. (2017). p.97.
Helbing, D. and et.al, 2018. Will democracy survive big data and artificial intelligence?.
In Towards Digital Enlightenment(pp. 73-98). Springer, Cham.
Ingrand, F. and Ghallab, M., 2017. Deliberation for autonomous robots: A survey. Artificial
Intelligence. 247. pp.10-44.
Moravčík, M., and et.al., 2017. Deepstack: Expert-level artificial intelligence in heads-up no-
limit poker. Science. 356(6337). pp.508-513.
Thomassey, S. and Zeng, X., 2018. Erratum to: Artificial Intelligence for Fashion Industry in the
Big Data Era. In Artificial Intelligence for Fashion Industry in the Big Data Era (pp. E1-
E1). Springer, Singapore.
Wong, W.K. ed., 2018. Artificial Intelligence on Fashion and Textiles: Proceedings of the
Artificial Intelligence on Fashion and Textiles (AIFT) Conference 2018, Hong Kong. July
3–6, 2018 (Vol. 849). Springer.
Yamins, D., 2017. Using Artificial-Intelligence-Driven Deep Neural Networks to Uncover
Principles of Brain Representation and Organization.
ONLINE
Applications of Artificial intelligence in fashion. 2018. [Online].Available through
<https://www.techemergence.com/ai-in-fashion-applications/>.
Artificial intelligence. 2018. [Online].Available through
<https://www.techemergence.com/artificial-intelligence-retail/>.
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