AI in Fashion Marketing: New Look Strategic Analysis and Proposal

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Added on  2020/12/10

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AI Summary
This project provides a comprehensive analysis of artificial intelligence (AI) as a macro trend in the fashion industry, focusing on its impact on business operations, strategy, and customer interaction. The project explores trend forecasting frameworks, consumer behavior, and the drivers of AI adoption in retail, including the experiences of brands like Burberry and Zara. A consumer questionnaire conducted with New Look customers reveals insights into their perceptions of AI's role in daily life, business outcomes, customer experience, and the development of the fashion sector. The analysis highlights varying consumer attitudes toward AI, with younger generations generally more receptive. The project concludes with a strategic analysis of New Look, proposing AI applications to enhance its brand and suggesting how AI can be integrated into the fashion industry to improve efficiency, customer satisfaction, and overall business performance. The project highlights the evolution of AI and its potential for transforming the fashion retail landscape.
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Strategic Fashion Marketing
Consultant
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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.
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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
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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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