At the Drapers Future of Fashion conference, Zalando’s use of AI to improve customer engagement was a central theme.
- Zalando’s vice president detailed the challenges and advantages of serving over 50 million customers with AI tools.
- The Zalando Assistant offers personalised shopping suggestions, though it might not always predict trends like weather changes.
- Zalando’s Trend Spotter tool analyses data from multiple European cities to forecast emerging fashion trends.
- These AI-driven tools leverage technologies like ChatGPT, providing cost-effective solutions for the retailer.
At the recent Drapers Future of Fashion conference, held on 19 June, Tian Su, Zalando’s vice president of personalisation and recommendation, took the stage to discuss innovative strategies employed by the online retailer to enhance customer engagement through artificial intelligence. Serving over 50 million customers across 25 markets presents both a challenge and an opportunity for the company. The vast customer base allows Zalando to collect intuitive feedback which is crucial for refining the shopping experience online.
One of the key tools highlighted by Su is the Zalando Assistant, an AI-powered application designed to personalise the shopping experience by offering product suggestions. If customers find the recommendations unappealing, they have the option to ask for alternatives, providing immediate feedback through a simple thumbs-up or thumbs-down action. While effective, Su acknowledged its limitations, specifically its inability to anticipate weather-related fashion choices, as seen in her own experience where the tool suggested attire that was unsuitable for the unexpected chilly weather.
In contrast, the Trend Spotter tool, another innovation by Zalando, provides weekly updates on emerging fashion trends from six major European fashion hubs—Berlin, Paris, Milan, Copenhagen, Stockholm, and Antwerp. This application identifies trends by analysing data such as product searches, likes, and shopping cart additions. Su mentioned an interesting correlation observed in the data: when American singer Taylor Swift engages in public activities, there is a notable spike in demand for items associated with her in the Trend Spotter tool.
Zalando’s AI tools, particularly the Zalando Assistant, incorporate advanced technologies like ChatGPT to optimise performance. Su recommended that other fashion brands and retailers adopt similar AI solutions, especially third-party technologies, to rapidly adapt to emerging technological trends without incurring significant development costs.
Zalando’s innovative use of AI tools like the Zalando Assistant and Trend Spotter exemplifies effective strategies for enhancing customer engagement in the fashion retail sector.
