Industry

• Wholesale and Retail Business (GMajor Category)
• Retail (Subcategory 47)

Industry Pain Points

• High market competition pressure: Businesses must face challenges from traditional physical stores and online e-commerce to gain competitive advantages, requiring continuous optimization in pricing, product diversity, shopping experience, and service quality.
• Slow pace of digital transformation: With the rapid progress of technology, consumer shopping patterns have undergone significant changes, such as the rise of e-commerce reshaping the traditional retail industry. Department stores should carefully integrate online and offline sales channels to ensure a consistent and superior shopping experience for consumers.
• Inventory management and supply chain need integration: Businesses need to manage large inventories precisely to ensure smooth supply and rapid product delivery.
• Lack of personalized shopping experience: Generation Z, digital natives, particularly value the shopping experience, including the usability and search functions of platforms and apps.
• Insufficient information security protection: With the increase in massive data and online transactions, protecting consumers' personal data and payment security has become a primary task for businesses.

IntroductionAIBenefits

• Personalized consumer recommendations: By analyzing consumers' purchase history, preferences, and behavior patterns, businesses can provide personalized product recommendations, enhancing consumer satisfaction and purchase intent.
• Virtual fitting and realistic experiences: Using technologies like virtual fitting rooms and virtual reality to provide consumers with realistic shopping experiences online. This can reduce the time spent in physical fitting rooms and decrease the demand for them.
• Enhancing cross-selling success rates: Based on consumers' purchase records and behavior patterns, offering relevant cross-selling suggestions can increase the shopping frequency and enhance transaction value.
• Virtual assistants and automated response services: By deploying virtual assistants, chatbots, and automated response systems, businesses can provide consumers with real-time customer support, while also effectively saving on human resource costs.
• Consumer market insights and trends: By analyzing large volumes of data, businesses can gain consumer insights and market trends, helping to optimize merchandise display, marketing strategies, and inventory management, and further enhancing sales performance and profits.

Common AI technologies or applications

• Random Forest, Recurrent Neural Networks: With AI algorithms such as random forests or recurrent neural networks, by analyzing historical data such as browsing, clicking, and purchasing, businesses can identify important consumer trends and patterns, and capture consumer behavior patterns over time, helping to more accurately predict future consumer trends.
• Collaborative filtering, content filtering: Using AI techniques like content filtering or collaborative filtering, consumer behavior and preferences can be analyzed to provide personalized product recommendations.
• Recurrent Neural Networks, Natural Language Processing, Generative AI: Employing AI technologies such as recurrent neural networks combined with natural language processing for voice recognition and natural language understanding, deriving consumer insights and emotional tendencies; also using generative AI like generative pre-trained transformers to develop virtual assistants or chatbots, providing real-time customer support and personalized services, available 24/7.

 

「Translated content is generated by ChatGPT and is for reference only. Translation date：2024-05-19」