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How luxury brands can leverage AI for fashion features to offer better brand experiences

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AI has been omnipresent in consumers’ lives for many years.

 

The concept has been emphasized these past few months, especially with the release of Chat GPT. With the rise of generative AI and its extensive use, we can easily say that we have witnessed a race to AI with every brand trying to get a hold of this innovation.

 

Artificial Intelligence is revolutionizing the way business operates, thus everyone wishes to incorporate it into their offers. Indeed, fashion luxury brands understood the worth of AI and decided to grasp the opportunity as well. 

 

In this article, we will provide you with 5 ways luxury brands use AI to their advantage and keep up with the trend.

AI: the continuation of the
human-machine bond

Artwork created by a human and an AI
Gucci NFT created by Tyler Hobbs and Botto
“Artificial Intelligence is a machine’s ability to perform the cognitive functions we usually associate with human minds.” _ McKinsey 

According to McKinsey, AI is the ability of machines to perform tasks that have always been associated with human conscience and intelligence. Humans take the matter into their own hands and program machines or software to be artificially intelligent, thus mimicking the human mind and way of thinking to a superior level, at times.

Humans have used machines as a source of help. From the machines of production lines to computers to Google Assistant, they have been a crucial part of human existence and development. Moreover, they have contributed to the improvement of several features and especially one that is precious to humankind: productivity.

Out of all the different shapes, types, and sizes of machines, Artificial Intelligence is one of them. However, AI in itself is simply AI. It is the way we humans utilize AI and luxury brands, AI for fashion, that creates the beauty and efficiency of the bond. 

How brands can utilize AI for fashion to enhance their consumer journey

1. Data collection and analysis

Through data collection and analysis, luxury brands use AI for fashion, to enhance their performance towards their consumers and their internal organization. 
  • Consumer data: luxury brands use AI to analyze their consumers’ data to assure a solid customer base. The data collected is used in-store and online. In-store, retail assistants are provided with information concerning the consumer in front of them. The retailer can then help the customer make informed decisions based on the preferences identified by the AI, allowing a more tailored consumer experience, thus customer satisfaction and loyalty.  

Burberry

Burberry used AI to analyze their client’s data to help them offer more personalized experiences as well as products that suit their tastes. [1]
Burberry picture
  • Trends analysis: collecting data on marketing or social media trends allows a better communication and content creation strategy for the brand. Identifying different trends and consumer consumption habits enables brands to introduce new product offers to their customers and personalize their communication strategy.  

McKinsey

According to McKinsey and Company, brands that succeed at providing personalized experiences to their consumers can increase their revenues by 40%. [2]
Carolina Herrera lipstick product configurator for a personalized experience
  • Sales channels and inventory data: using the data collected by Artificial Intelligence for fashion, brands can manage their supply chain and inventory management methods to solve issues and optimize processes within the supply chain. 

LVMH x Google

LVMH partnered with Google’s Artificial Intelligence, Alphabet Inc., to analyze its inventory and forecast consumption trends. The partnership’s main goal is to help the group with enhancing its strategy to target the products to certain consumers. [1]
LVMH and Google's partnership on AI for fashion
  • Data collection to enable powerful 3D product configurators 
Another way luxury brands can use AI for fashion to their consumers’ advantage is by coupling the technology to 3D product configurators.
Web product configurators are already a tool used to enhance website traffic, conversion rates as well as customer journeys. Nevertheless, combining AI for fashion with a 3D web product configurator can take the tailored customer experience to the next level.
With the data collected by the AI, the brand can suggest products to configure that suit the consumer’s preferences and past purchases. Consequently, the brand gains their trust, increasing the number of repeat customers. 

2. In-store facial recognition

Dior's virtual try on filters
Dior's virtual try on filters using facial recognition
Similarly, to data collection, in-store facial recognition is a great element to be leveraged by luxury brands to enhance their brand experience through AI for fashion. 

How does it work? Once a consumer steps foot into a store, their face is analyzed and stocked as part of the consumer’s data collection. Therefore, if the customer returns to the store, the AI will be able to recognize the client. 

Based on their past purchases and information acquired by Artificial Intelligence, retailers can offer repeat clients products according to their preferences and to similar past purchases made. This allows a unique and personalized brand experience depending on each customer.  

3. Virtual assistants for enhanced personalized services

Dior AI assistant - Photo: Dior Insider
When thinking about Artificial Intelligence, we often associate the word assistance with it. Indeed, AI was developed to assist humans. Today, certain luxury brands make use of AI for fashion to install virtual assistants for their consumers. 

Brands such as Chanel and Dior have used this feature and proven that their brands thrived. Dior was the earliest adopter of virtual assistance for its brand. The brand developed an AI-powered chat box linked to their clients’ Messenger and WhatsApp named Dior Insider. The AI answers questions that clients might have and shares the latest company news with their shoppers. 

The chat box is also part of the user experience which is crucial to guaranteeing a thought-about brand experience. 

4. Product identification with AI for fashion

On the one hand, AI for fashion can identify counterfeit versions of a product. How? Through meticulous analysis of textures, colors, stitching, patterns, sizes, and angles. Artificial Intelligence collects data on every detail and irregularity to conduct its diagnosis.  

 

Any feature that does not match the original products is noted by the AI. This is particularly useful for brands as they must protect their image and unique expertise. 

 

On the other hand, AI for fashion can identify real products through a single image. In fact, some consumers find the products they want thanks to images, for instance, in advertising campaigns. Have we all not been in a comparable situation? The moment when the client wishes to purchase a product but has neither the name nor the reference.  

 

By leveraging visual image recognition, luxury brands simplify the consumer journey. Their clients can find the product they want through a simple image.

Cartier x Google

Cartier partnered with Google on a visual image search tool to fluidify the consumer experience. Google’s AI could determine the collections to which the watches shown belonged. [3]
Cartier and Google AI solution

5. AR (Augmented Reality) and virtual try-on experiences

AI-powered augmented reality technology and virtual try-ons also represent a big opportunity for luxury brands to use AI for fashion. Some have already taken the leap and introduced such features to their in-store brand experience. From Burberry to Chanel, an increasing number of brands wish to leverage the power of AR to enhance their brand experience and retain wealthy customers. 
Discover SmartPixels' Augmented Reality solutions

Integrate AI for fashion to your business with SmartPixels

Get help from SmartPixels to integrate AI into your business. By leveraging the power of Neural Radiance Fields (NeRF), you can integrate a form of Artificial Intelligence into your business.

NeRFs create 3D images through neural networks that learn the relationships between the appearance of the environment and the object itself. NeRFs use deep learning to generate 3D renderings from initial 2D visuals.

With NeRFs you will be able to render your products in 3D in an efficient and rapid manner.  
Find out how SmartPixels can help you introduce AI to your business
Sources:
 [1] https://www.fashionabc.org/luxury-fashion-embraces-artificial-intelligence/#:~:text=Dior%2C%20for%20example%2C%20was%20one,or%20answer%20specific%20product%20queries. 
[2] https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-ai 
[3] https://www.linkedin.com/pulse/use-ai-luxury-business-models-abdul-m-/