In recent years, e-commerce has made remarkable progress. While people enjoy the convenience of shopping without leaving home, consumers are also increasingly demanding. Chinese retailers are transforming the customer journey into a more and more personalized experience. Thanks to algorithms that use customers’ purchase history and browsing data.
According to market research firm Gartner, by the end of 2020, more than 80% of customer service jobs will be replaced by artificial intelligence. In 2017, China issued the development plan for the new generation of artificial intelligence. Nowadays, AI, which has already demonstrated its value in industries such as marketing, healthcare, finance and education, is now entering in the e-commerce field.
Taobao, JD and Amazon are using AI technology to conduct comment mining, develop chatbots, make product recommendations and process big data. Last year, Tmall invested heavily in its FashionAI algorithm to launch a trend report. The goal was to forecast styles and colors young Chinese customers would be searching for in the next six months. These reports help brands reduce end-of-season markdowns and improve sales performance.
AI helps customizing online shopping experience
AI is allowing brands to customize their offerings based on what consumers are looking for. For example, through recommendation mechanisms, companies can access what types of searches that person did before. Former visitors are recognized and presented with personalized recommendations for their brand, style and product preferences. Meanwhile, those who are completely new to the website receive recommendations based on real-time bestsellers.
When someone needs new shoes or dress, now he or she can simply chat with a AI chat agent. Through the forward and backward dialog box, the client can find the best fashion product or accessory item. This interaction provides a great customer experience and much more valuable information for the fashion brand.
In addition to chat systems, AI is reaching out to e-commerce and mobile apps. Consumers can take pictures of clothes they like or styles they want to copy, and smart image recognition systems can combine the photos with real-life items available for sale. In addition, AI-enabled shopping apps allow customers to take screenshots of the clothes they view online, identify buyable accessories and accessories in that photo, and then find the same clothing and buy similar styles.