{"id":8373,"date":"2020-07-08T11:01:16","date_gmt":"2020-07-08T05:31:16","guid":{"rendered":"https:\/\/www.vue.ai\/blog\/?p=8373"},"modified":"2024-03-14T15:01:43","modified_gmt":"2024-03-14T09:31:43","slug":"a-i-in-retail-across-segments","status":"publish","type":"post","link":"https:\/\/www.vue.ai\/blog\/retail-trends\/a-i-in-retail-across-segments\/","title":{"rendered":"AI in Retail Across Segments"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69fb0f4ecf2dc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69fb0f4ecf2dc\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/a-i-in-retail-across-segments\/#it-is-also-increasingly-clear-that-while-retail-is-certainly-not-dead-it-is-undergoing-a-metamorphosis\" title=\"It is also increasingly clear that while retail is certainly not dead, it is undergoing a metamorphosis.&nbsp;\">It is also increasingly clear that while retail is certainly not dead, it is undergoing a metamorphosis.&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/a-i-in-retail-across-segments\/#the-data-challenge\" title=\"The Data Challenge\">The Data Challenge<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/a-i-in-retail-across-segments\/#ai-in-retail-2021\" title=\"AI in Retail 2021\">AI in Retail 2021<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/a-i-in-retail-across-segments\/#1-ai-for-fashion-retail\" title=\"1. AI for Fashion Retail\">1. AI for Fashion Retail<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/a-i-in-retail-across-segments\/#2-ai-for-grocery-retail\" title=\"2. AI for Grocery Retail\">2. AI for Grocery Retail<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/a-i-in-retail-across-segments\/#3-ai-for-electronics\" title=\"3. AI for Electronics\">3. AI for Electronics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/a-i-in-retail-across-segments\/#4-ai-for-home-and-furniture\" title=\"4. AI for Home and Furniture\">4. AI for Home and Furniture<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/a-i-in-retail-across-segments\/#5-ai-for-beauty\" title=\"5. AI for Beauty\">5. AI for Beauty<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/a-i-in-retail-across-segments\/#adopt-a-full-suite-of-ai-solutions-and-learn-more-about-how-ai-is-necessary-for-retail-%e2%80%93%3e-click-here\" title=\"Adopt a full suite of AI solutions and learn more about how AI is necessary for retail &#8211;&gt; Click here.\">Adopt a full suite of AI solutions and learn more about how AI is necessary for retail &#8211;&gt; Click here.<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">6<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<p>To say that COVID 19 has changed the retail business model is a huge understatement.<br><br>Long queues outside the <a href=\"https:\/\/twitter.com\/GenevaAbdul\/status\/1259802485792915457\">Zara<\/a> store in Paris on its first open day since the pandemic hit and the sales recovery of Gen-Z driven brands like <a href=\"https:\/\/www.cnbc.com\/2020\/05\/28\/abercrombie-fitch-says-teens-are-heading-back-to-the-mall.html\">Abercombie<\/a> indicate that things are looking up for retail. However, new sets of social-distancing guidelines for retail businesses cause reasonable doubt about the number of footfalls in physical stores in the coming year.<br><br>Retailers all over the world have been hit hard by this pandemic and there are several examples of retailers who have used this as an opportunity to evolve and grow. They have transformed their business model and readied themselves for a post-COVID world because make no mistake, the world is never going to be the same again.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"666\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/queue-outside-zara.jpg\" alt=\"AI for retail \" class=\"wp-image-8376\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/queue-outside-zara.jpg 1000w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/queue-outside-zara-300x200.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/queue-outside-zara-768x511.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption>UK Shoppers queue after stores reopen. Image via <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-06-15\/shoppers-in-england-return-to-stores-after-coronavirus-pause\">Bloomberg<\/a><\/figcaption><\/figure>\n\n\n\n<p><br>Now is the time when \u201cthe new normal\u201d is no longer just a buzzword. Retailers are forced to adapt to survive. <strong>But what is this new normal?<\/strong><br><br>The new generation of shoppers, Gen-Z, expect bespoke shopping experiences in real-time and at the lowest price. They expect the retailer to know them as well as their local grocer used to. They don\u2019t want to be flooded with thousands of irrelevant products. Instead, they want shorter wait times, quicker order fulfillment, personalized product recommendations &amp; frictionless checkout experiences. This new generation was brought up in a digital world where they can find multiple options with a click of a button. They are used to Amazon\u2019s seamless shopping experience. This means retailers today have to adopt Artificial Intelligence (AI) to survive.<strong>&nbsp;<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"it-is-also-increasingly-clear-that-while-retail-is-certainly-not-dead-it-is-undergoing-a-metamorphosis\"><\/span>It is also increasingly clear that <strong>while retail is <\/strong><strong>certainly <\/strong><strong>not dead, it is undergoing a metamorphosis.&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>With almost everything moving online during the pandemic, shoppers will find it hard to forget the convenience of shopping online with millions of products to choose from and instant checkouts. Social media platforms like Netflix, Instagram, Snapchat, and the likes have achieved the level of individualization and experiential content needed for a platform to become habit-forming &#8211; something that retail has fallen behind on. Now, shopping too is moving to these platforms.<\/p>\n\n\n\n<p>It is easy to spot an item of interest on a platform, get recommendations, and opinions from friends and family, purchase the item of choice all within the same app, and have the entire experience be tailored to the individual.<\/p>\n\n\n\n<p>But how can retailers move online? Especially in segments like grocery and furniture which are traditionally offline first, retailers might find it very hard to suddenly shift gears and focus on their website as a source of revenue rather than just as a mandatory online presence. But what makes it so hard to move online?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-data-challenge\"><\/span><strong>The Data Challenge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/shutterstock_1049832146-1-1024x768.jpg\" alt=\"\" class=\"wp-image-8380\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/shutterstock_1049832146-1-1024x768.jpg 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/shutterstock_1049832146-1-300x225.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/shutterstock_1049832146-1-768x576.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/shutterstock_1049832146-1-1536x1152.jpg 1536w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/shutterstock_1049832146-1-2048x1536.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>What is retail&#8217;s biggest challenge in 2021?<\/figcaption><\/figure>\n\n\n\n<p>Retail\u2019s biggest issue is the lack of consistent and accurate data across teams. Even the data that is available ends up being used ineffectively or in a way that doesn\u2019t provide a singular view into the customer across channels.&nbsp;<\/p>\n\n\n\n<p>Consider this \u2013 bad data has cost US businesses <strong>$3.1T<\/strong> every year, &amp; data workers waste<strong> 50%<\/strong> of their time finding and correcting errors.<\/p>\n\n\n\n<p>The challenge for brands in this atmosphere is two-fold:<img loading=\"lazy\" decoding=\"async\" alt=\"page5image3906263520\" src=\"https:\/\/lh5.googleusercontent.com\/OD5Dtn_2KllLWS3aXSPB6_duEugkUpblfSPmjiO3hY-579JmMN9FKEn5I-nxNmkprfoHv_Kdc1Xwm8-11mJHZtp028lM90jqpDtf1dOtbeFayzxgl5qpGB1ryQL3BlLrkj9g9-wl\" width=\"3\" height=\"16\"><\/p>\n\n\n\n<p><em>1. Know the customer well.<\/em><\/p>\n\n\n\n<p><em>2. Use the customer data and build operational efficiency into their systems.<\/em><\/p>\n\n\n\n<p>Accurate data can bring optimization, automation, and competence. And the best way to create consistent data and bring about this <a href=\"https:\/\/www.vue.ai\/blog\/retail-vue\/retail-in-the-era-of-hyper-adoption-and-hyper-abandonment\/\">hyper-personalized experience<\/a> is through Artificial Intelligence.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"ai-in-retail-2021\"><\/span>AI in Retail 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"689\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/Screen-Shot-2020-07-10-at-2.28.56-PM.png\" alt=\"AI in Retail 2020\" class=\"wp-image-8410\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/Screen-Shot-2020-07-10-at-2.28.56-PM.png 750w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/Screen-Shot-2020-07-10-at-2.28.56-PM-300x276.png 300w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><figcaption>AI can better every step of the retail process<\/figcaption><\/figure>\n\n\n\n<p>AI is retail\u2019s superpower. Retail is, in fact, one of the few industries where the adoption of Artificial Intelligence(AI) is being seen in a meaningful and actionable manner. Every step of the retail process has the ability to be automated in a way that would increase accuracy, efficiency, and scaling of operations. From customer acquisition using reliable data to catalog and inventory management to post-purchase experience \u2013 AI has the ability to impact retail in a holistic end-to-end manner. retailers across segments can use AI to transform their business. <strong>Here are a few examples:<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1-ai-for-fashion-retail\"><\/span><strong>1. AI for Fashion Retail<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Visual AI can be used to identify and tag detailed product attributes. This data can be standardized, organized, and published. This catalog data can be analyzed with user behavior to enable better product discovery, <a href=\"https:\/\/www.vue.ai\/blog\/vuecommerce\/retail-personalization-in-2021\/\">retail personalization <\/a>across channels, and overall, better customer experience across all channels.<\/p>\n\n\n\n<p>AI-powered solutions can also take basic product images and convert them into high-quality <a href=\"https:\/\/www.vue.ai\/products\/on-model-imagery\/\">on-model imagery<\/a>. Not only does this act as a product photoshoot alternative, but it also removes the need for post-production and editing. <a href=\"https:\/\/www.vue.ai\/products\/on-model-imagery\/\">Automating on-model imagery<\/a> helps cut most of the traditional retail photoshoot costs. It helps deliver shopper-ready <a href=\"https:\/\/www.vue.ai\/solutions\/ai-product-imagery\/\">e-commerce product imagery<\/a> much faster than existing processes.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2-ai-for-grocery-retail\"><\/span><strong>2. AI for Grocery Retail<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>NLP and Computer Vision can be used to capture and digitize product data by generating standard and derived product attributes. These attributes combined with shopper profiles are used to power personalized journeys for every shopper. Shopper lifestyle profiles can be built from every click dynamically, personalizing journeys in real-time. These lifestyle profiles are also used to power personalized marketing through offers, <a href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/shopping-cart-abandonment-ultimate-guide\/\">shopping cart abandonment <\/a>emails, and push notification.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"976\" height=\"531\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/Screen-Shot-2020-07-10-at-2.40.24-PM.png\" alt=\"AI in retail can help understand every shopper's profile, preferences and shopping habits\" class=\"wp-image-8413\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/Screen-Shot-2020-07-10-at-2.40.24-PM.png 976w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/Screen-Shot-2020-07-10-at-2.40.24-PM-300x163.png 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/Screen-Shot-2020-07-10-at-2.40.24-PM-768x418.png 768w\" sizes=\"(max-width: 976px) 100vw, 976px\" \/><figcaption>AI in retail can help understand every shopper&#8217;s profile, preferences and shopping habits<\/figcaption><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3-ai-for-electronics\"><\/span><strong>3. AI for Electronics<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Customer intelligence is at the very forefront of the electronics retail business. Retailers need a 360 degree of customers and their affinities. AI can help retailers identify categories, products, and brand affinities built from data collected through every click of the customer. This can be used to offer relevant and accurate recommendations that cut through multiple electronic segments, calculate brand and product affinities to enable and optimize product targeting at an individual level, and to build affinities: product to product and product to user, to offer the best substitute and complementary products, using product graphs.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4-ai-for-home-and-furniture\"><\/span><strong>4. AI for Home and Furniture<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Furniture retail is a high-value business with longer sales cycles. The consideration phase is much longer in this category which means shoppers need to be engaged with relevant content over a much longer period of time.<\/p>\n\n\n\n<p>AI-powered algorithms can extract and create rich, accurate data for retail teams and enable them to make faster and better merchandising and customer service decisions across channels. This data can power algorithms to understand unique and individual customer preferences to help furniture brands engage customers and thereby nurture customer retention, loyalty, and lifetime value. Both online and offline data about the shopper can be combined to give a singular view of the shopper\u2019s intent, preferences, and affinities.<\/p>\n\n\n\n<p>All of this can work to increase average order size and average order value through accurate recommendations that take into account interior style and the room being shopped for, shopper intent, and preferences.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"753\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/07\/furniture.gif\" alt=\"\" class=\"wp-image-8378\"\/><figcaption>AI in furniture retail helps shoppers access relevant content, and helps keep them coming back for more<\/figcaption><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5-ai-for-beauty\"><\/span><strong>5. AI for Beauty<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Every beauty customer is unique, which is why it\u2019s crucial for beauty retailers to offer tailor-made recommendations and customer experiences. Beauty retailers can retain and nurture loyalty by engaging customers with one-of-a-kind site experiences that they will keep coming back to. But scaling up the kind of personalization needed by beauty customers is not possible without AI<\/p>\n\n\n\n<p>AI can help power dynamic recommendations that are specific to each and every customer\u2019s skincare profile. This profile is built using AI-powered product graphs that are cognizant of ingredients, color, and brand preferences.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"adopt-a-full-suite-of-ai-solutions-and-learn-more-about-how-ai-is-necessary-for-retail-%e2%80%93%3e-click-here\"><\/span>Adopt a full suite of AI solutions and learn more about how AI is necessary for retail &#8211;&gt; <a href=\"https:\/\/www.vue.ai\/industries\/ai-in-ecommerce\/\" target=\"_blank\" rel=\"noreferrer noopener\">Click here.<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Read More About<\/strong><a href=\"https:\/\/www.vue.ai\/industries\/ai-in-ecommerce\/\"><strong> Automated Catalog Management<\/strong><\/a><strong> Solution<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">6<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span> To say that COVID 19 has changed the retail business model is a huge understatement. Long queues outside the Zara store in Paris on its first open day since the pandemic hit and the sales recovery of Gen-Z driven brands like Abercombie indicate that things are looking up for retail. However, new sets of social-distancing  &#8230;<\/p>\n","protected":false},"author":24,"featured_media":16931,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1523,1161],"tags":[58,526,29,542,171,10],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A.I. in Retail Across Segments | Vue.ai Blog<\/title>\n<meta name=\"description\" content=\"AI is retail\u2019s superpower. 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