The world's largest apparel brand H & M is using artificial intelligence (AI) to win back to the consumer's heart, hoping to reverse the dilemma of sales. According to Wall Street Daily (WSJ), this rapid fashion apparel store with 71 years of history is changing the face of the retail store, breaking the process of reserving the same product inventory around the world, replacing the store in different parts of the store is different. Sales plan.
Similar to most retailers, H & M rely on designers to determine what styles of goods want to buy. But now we use algorithms to analyze the store receipt, returns and loyalty card data, in order to better align supply and inventory, while reducing the price cut.
H & M has fallen by 56% over the past three years, and there is a situation in the sales plunge in the same store in 10 consecutive quarters, and the retail growth is blocked at low costs, and the retail growth is blocked. It is not only H & M facing this dilemma. The emergence of online shopping and new e-commerce platform has led to a reduction in customers' visit stores, making H & M's clothing brands also think about the attention of customers.
Other apparel brands, such as Zara to provide robots to some of the stores, facilitate consumers to pick up their goods after online purchase; GAP will observe consumer preferences with Google analysis and market research data. However, like H & M uses granular data (Granular Data) analysis, it is suitable for distribution of goods in the store, and has not yet preceded in the retail industry.
Taking into account H & M sheer size, how big data is extended to every shop, predictable this is a daunting task. The brand has 4,288 rooms, ZARA has 2,127, while GAP has 1,301 stores, changing the operating mode of the store to bring considerable cost and workload, but the specific budget H & M is not disclosed.
The goods sold in the May Chang, Sweden Stockholm, have always been based on men, women and children, these are the management class assume that local customers need, but through more fine purchase and return data analysis, H & M found that the fixed consumers in the store are mainly women mainly, and the soft floral skirts in spring and the high unit price are unexpected.
At the end of 2017, H & M cut 40% of the original products of the store, especially men's clothing, and added tableware, café and flower shop, next to $ 6 T-shirt and $ 12 of $ 12, place 118 dollars. Leather bags and $ 107 cashmere sweaters and other more expensive costumes in line with this middle class customer-based community consumption level and demand. It is understood that the sales of the store have been greatly improved.
In order to grasp the popular trend 3 to 8 months, H & M even analyzed a large number of community network articles, search engine data, and this is determined by designers.
The 200 analysts of the H & M headquarters decided to decide the following quarterly items by analyzing 5 billion, in order to determine the following quarter, even if the goods are inseparable from the algorithm. Considering the factors such as currency fluctuations, raw material costs, and use algorithms to ensure that goods have the correct pricing when they arrive.
Investor Relations H & M's head of Nils Vinge said data analysis can work 24 hours a day, from time to time to adjust to changing customer behavior and expectations. H & M also illustrates that it is not to use AI to replace the supervisor of the decision-making, but to make a decision to provide better goods. Technology area
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