Artificial intelligence has made waves in the business world, and the huge market size of its systems has been increasingly valued. Let's take a look at what the huge potential of artificial intelligence has transformed the retail industry
Whether and where to open a store has always been a tough decision for retailers. According to statistics, this decision is enough to affect millions of dollars in cost or revenue. Currently, artificial intelligence is being used to find the best locations to open a new store. Combining historical data such as sales, population, distance to competitors, events happening nearby, and current data such as weather patterns, intelligent algorithms can provide critical factors for the success of a new store.
Supply chain management is the most important factor affecting the bottom line of the retail industry. On the one hand, excess inventory increases costs, and on the other, depletion of inventory can damage the reputation and lead to lost customers. Normative models based on historical data such as different products, events, marketing behaviors, seasonal factors, etc., can predict the correct supply and demand relationship. Through artificial intelligence, retailers can effectively prevent inventory problems, optimize logistics management, and use operating funds more efficiently.
Prescriptive predictive models based on historical sales, marketing campaigns, website discounts, major events, and competitor-related data can clearly indicate what influencers are more meaningful in the past and in the future, which can make retailers' marketing activities more effective and will help The company grows, attracts and converts more customers. Advanced AI prediction programs can use attributes such as historical employee performance to paint a profile of employees who want to stay with the company longer. This will greatly reduce the company's recruitment costs.
Deciding what to buy in a store, especially apparel and accessories, has always been a nightmare for customers. Before every purchase, it constantly haunts the buyer. AI has come up with a solution - a virtual fitting mirror. A virtual fitting mirror can help customers try various options before making a purchase. It can show a virtual mirror image of the customer wearing the clothing or accessory of their choice, but it does so based on the use of gestures and touch interfaces. It allows consumers to mix and match clothing and accessories to make the right purchase choice.
Searching for information is another nuisance that consumers tire of when shopping in-store. In-store advertising and gesture touch enabled by artificial intelligence has revolutionized the traditional form of information search. These touch walls are used to promote merchandise, introduce customers to the store and tell them what to buy here. Customers can use gestures to control the touch wall to search for information, check items, add favorites and buy. These touch walls can also be made as part of store windows to attract shoppers and ensure transactions can take place even when stores are closed.