5 AI Solutions Frequently Used by Fashion/Beauty Companies
Why Fashion/Beauty Companies Use AI Solutions
Fashion/beauty companies sell products across a wide range of categories and launch new products every season. Because they handle so many products, they generate massive amounts of data.
Handling large volumes of data is crucial for optimizing the customer experience and improving operational efficiency. If, due to the sheer number of products, customers can't easily find what they want, aren't offered better options, or don't see their needs and trends reflected, the churn rate rises and the purchase conversion rate falls. That's why fashion/beauty companies need to make good use of the large volumes of data they hold to improve the customer experience and reduce inefficient operational tasks.
That's why many fashion/beauty companies use AI solutions tailored to each stage of the funnel. They're boosting sales and building competitiveness with AI suited to each stage's purpose. This article introduces 5 solutions frequently used by fashion/beauty companies.
Using AI Across the Fashion/Beauty E-commerce Funnel
Stage 1: Product Discovery
Image-search AI solution
Stage 2: Product List
Product-category tagging AI solution
Stage 3: Detail Page
Similar-product recommendation AI solution
Review-analysis AI solution
Stage 4: Cart
Personalized product-recommendation AI solution
Stage 5: Purchase/Repurchase
5 Fashion/Beauty AI Solutions
Fashion/Beauty AI Solution 1 — Image Search
Business Goal
During the fashion/beauty shopping journey, customers look through many products as they search for the one that's right for them. You need to provide search features that help customers easily find what they want.
The Problem
Have you ever wanted to find a product you liked on social media or the internet, but didn't know how to search for it? When images make up a key element of a product — as with fashion, furniture, or interior design — text search can be difficult. That's because it's hard to put the product's name or features into words to search for it.Even if the words do come to mind, you're likely to have trouble getting the search results you want.
The Solution (AI Solution)
We provide a search engine that lets you search by uploading an image. Based on similarity, the AI delivers an intuitive image-based search experience. It shortens the search process and improves convenience.
Custom AI Point
It can be trained for various scenarios, such as complex backgrounds or unclear images.
You can configure it to return results that meet specific criteria, such as when the model is similar or when the product is similar.
Fashion/Beauty AI Solution 2 — Product-Category Tagging
Business Goal
For fashion/beauty companies that sell many products, it's important to let customers find what they want quickly and easily. If products are hard or complicated to find, it can lead to customer churn. Category classification should make it easy for customers to find the products they want.
The Problem
Classifying categories for a large number of products is highly complex and time-consuming. For products coming from various countries, manufacturers, and sellers, the specifications all differ, making product-category tagging complicated. Still, category classification isn't a high-value-added task. It's a necessary but thankless chore — too important to skip, yet a shame to spend so much time on.In terms of operational efficiency, automation is needed.
The Solution (AI Solution)
The AI analyzes product images and automatically assigns the appropriate category. From essential categories down to detailed subcategories, the AI identifies a product's features and classifies it accurately. This dramatically reduces time and cost. There's no need for people to handle everything one by one.
Custom AI Point
You can set category criteria tailored to each company's characteristics. It can process products coming in from various countries and manufacturers.
It can continuously improve accuracy by analyzing product characteristics and customer purchase patterns.
When new products come in, it can learn in real time and classify them.
Fashion/Beauty AI Solution 3 — Similar-Product Recommendation
Business Goal
Commerce companies want to show similar products to give customers a good purchase experience. That's because when customers buy a product, they often compare it with other products of a similar style or color. If you can't easily provide the similar products a customer wants, the purchase may not happen and the churn rate can rise. Similar-product recommendation is an effective strategy for increasing sales.
The Problem
Setting criteria for similar products among countless items isn't easy. With so many products, there are many factors to consider. Above all, when products are updated every season, you have to keep reflecting those changes —and that kind of management isn't easy either.
The Solution (AI Solution)
The AI analyzes the design, color, and pattern of the product the customer is viewing and can recommend similar products — within the same brand, of course, but also from other brands or other categories. That's because the AI's strength lies in analyzing the similarity between items.Through this, customers can easily compare and choose from various options.
Custom AI Point
You can adjust the recommendation logic according to internal strategy — for example, highlighting high-revenue products or products you want to clear out of inventory.
You can make more refined recommendations by reflecting the detailed elements (design, material, color) that a specific brand or customer values.
It can recommend the latest products by reflecting seasonal changes and trends. It can deliver suitable results quickly.
Fashion/Beauty AI Solution 4 — Review Analysis
Business Goal
Product reviews are a crucial factor that can drive purchases or cause customers to leave. By analyzing customer feedback in the form of reviews, you can gain help with strategy, sales improvement, and trend identification. You can also prevent major problems by addressing critical reviews in advance.
The Problem
Because sales happen across various markets — your own mall, Instagram, Coupang, and more — reviews are scattered. There are also cases of selling overseas. So you need to collect these dispersed reviews. Even so, the number of staff who can handle them internally is limited compared to the ever-growing volume of reviews, which makes it difficult. It's also inefficient.
The Solution (AI Solution)
The AI collects and analyzes reviews piled up by the thousands, then extracts and provides meaningful keywords. Based on this, you can offer reviews for the categories or products a customer wants. You can also recommend products to customers using the extracted review keywords. Internally, you can visualize review-analysis insights and use them for decision-making, such as in reports.
Custom AI Point
You can separately manage the review data you want to check internally and the review data you want to expose to customers.
You can reflect keywords to manage reviews that cause critical problems and must be addressed.
Crawling is provided for overseas sites, and translation work can be additionally provided accordingly.
Fashion/Beauty AI Solution 5 — Personalized Product Recommendation
Business Goal
When you're recommended a product that's just right for you, the purchase experience is satisfying. You can improve the customer experience through personalized product recommendations based on individual preferences, purchase patterns, and tastes. You can raise the purchase conversion rate, reduce the churn rate, and increase customer loyalty.
The Problem
Examining customer data and recommending matching products is highly complex. That's because it isn't easy to analyze customers who each have different tastes and purchase patterns. It's also difficult because you have to match and suggest products that fit the analysis results.
The Solution (AI Solution)
The AI recommends personalized products by comprehensively considering purchase patterns, behavior, and other customers' purchase data. It can quickly learn from the data of new customers as well as existing ones. Beyond simple similar-product recommendations, it can make recommendations based on more detailed analysis. Additional upselling is also possible.
Custom AI Point
You can use differentiated recommendation strategies tailored to customer tiers (VIP, new, returning).
By reflecting customer behavior data in real time, even more accurate personalized recommendations are possible.
It can automatically reflect seasonally updated products.
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So far, we've looked at 5 AI solutions frequently used by fashion/beauty companies.
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