Millennial consumers are quite demanding and this has led to retail industry taking steps to shift their strategies. Among others, retailers are increasingly dependent on Artificial Intelligence to cater to millennials.
Where does Artificial Intelligence (AI) fit in the scheme of things? How does AI help in the increasing trend of personalization?
200 years old american apparel retailer Brooks Brothers is not immune to this trend, and has embraced Artificial Intelligence in its operations. It has adopted an end-t0-end AI-enabled optimization platform that helps ifigure out everything from maintaining optimal stock levels, including how many shirts it should have in stock at each store, to effective promotion strategies, and their impact on sales.
According to Brooks Brothers chairman and CEO Claudio Del Vecchio, “The trend that’s becoming visible in the industry is better customization and a more personalized approach with consumers. Fashion is by definition changing. All the changes are happening faster. The ability to react faster is becoming more important. Company-directed marketing is much less effective. We need to predict what customers want. AI is the solution.”
With increased speed and scale of transformation, retail has changed, with the way people shopping and interacting with brands also getting impacted. In a different era, most Brooks Brothers customers had a close relationship with one sales associate at their local store. That associate knew everything about them and took care of them with a high element of service. In the internet-first era, people are now travelling more, and shopping online. Personalization online become a challenge, unless solutions powered by AI are leveraged to enable hyper-personalized services to customers.
The AI solution, “RETa.iL Platform” from ORS Group, encompasses complex AI algorithms that complement the data analytics capabilities and other tools at Brook Brothers. The intent is to improve and automate decision-making by producing bespoke insights beneficial to the entire value chain at Brook Brothers.
The RETa.i.L platform will support Brook Brothers with increased operational efficiency, enhanced and personalized shopping services, and in enabling informed strategic decisions in operations.
Brooks Brothers claims to be the first company to fully integrate AI across all back-end processes.
Some benefits of the RETa.i.L platform include:
Determining optimal stock levels
The ability to ship online from stores for same-day delivery.
Setting appropriate pricing by store, market and category.
Better analysis of sales by geographic region in both Brooks Brothers stores and local competitors, including market basket analysis of companion/complementary items.
Improving manufacturing lead times.