By embracing AI technologies, luxury brands and houses have discovered the value of using these tools to track their entire product chain, including gifting campaigns and in-store launches. Initially hesitant to adopt artificial intelligence, the luxury sector has now recognized the numerous advantages it brings, particularly in decision-making support for collection launches or relaunches.
An example of this is seen in the successful comeback of iconic bags from the 2000s, like the Dior Saddle bag and Chloe’s Edith bag. These comebacks are not solely the result of intuitive marketing, but also the strategic use of data. Tony Pinville, CEO and co-founder of Heuritech, explains that luxury houses have limited data outside of their sales network to manage their activities. Monitoring products provides valuable insights such as information on who is wearing them, the volume of social media engagement they generate, and the communities’ interest in them.
Insight solutions powered by AI analyze real-time social media activity to identify early signs of future trends. Their ability to analyze millions of images, including handbags, sneakers, and colors, based on customer queries is their strength. Pinville emphasizes that more than 80% of the hashtags associated with a photo do not align with the featured product, highlighting the importance of analyzing image content. Therefore, the resurgence of the Dior Saddle bag can be attributed to AI recognizing its growing adoption by influencers on social media, independent of brand gifting campaigns.
The predictive capabilities of AI have the potential to guide brands across the entire value chain of their products. It can be used upstream for market testing, defining collection plans, and adjusting them based on market specificities. In the retail phase, AI aids in placing the right product at the right time. Pinville adds that data-driven approaches also assist luxury brands in managing production in alignment with consumer expectations. Considering the significant value of unsold clothing, estimated at over $300 billion annually, it is crucial to rethink strategies.
Contrary to popular belief, the use of data does not stifle creativity; in fact, it enhances it. Pinville explains that it frees up time for the creative process by giving potential to products that deviate from the norm, allowing for testing of their success probabilities before release. Data is also increasingly integrated into the second-hand market to track developments and monitor prices. A sudden increase indicates a trend, while a sustained increase in availability suggests saturation. This approach also applies to understanding competitors’ strengths and weaknesses. Pinville concludes that brands that effectively manage their sales data, web data, and social media data can launch collections that resonate with their audience and accurately calculate quantities. This promise of efficiency serves both businesses and the planet.
Useful links:
1. Heuritech – Visit the Heuritech website to learn more about their AI-powered solutions for the fashion industry.
2. Dior Bags – Explore Dior’s collection of luxury bags, including the iconic Saddle bag mentioned in the article.
