Inditex, the world's largest clothing retailer and owner of Zara stocks up on Artificial Intelligence, Big Data and analytics into its business strategy to stay ahead in the race of competition. The biggest fashion retailer is hooking up with tech companies and hiring talent from startups and partnering Analytics and investments, which offers an AI-powered consumer behavior forecast platform.
Most of the traditional fashion industries are lagging behind because they run on a bi-annual or seasonal basis where it takes huge production lead time and typically low cost-centers. This involves high stock inventory which leads to increase the price of holding that particular stock, but ZARA trumps over such inefficiencies by leveraging big data. It understands the taste and preferences of the customer by data analytics and manufactures the product accordingly to attract customer attention, as customers are king of the market. But still the company is testing ways to improve stock handling and they tied up with California based Fetch Robotics to measure the stock inventory and test the robots.
Retailers are using customer facing technologies, like augmented reality applications (AR), virtual assistant and AI-powered chatbots to keep themselves in the race of digital savvy retailers. Now retailers are investing on AI and expecting to reach 7.3 billion in coming next five years and to onboard the automation, chatbot and analytics solution into the business.
Competitors like big brand H&M is also looking towards advanced analytics, new technologies and supply chain management to earn profit and run the business activities smoothly. Hence ZARA is quickly responding to the changing trends, using agile supply chain based sourcing production.
Thus, by leveraging artificial intelligence, big data and analytics the big fashion retailer can do its operation and run thier business sucessfully and with the help of artificial intelligence they can predict the customer behavior and by analytics they get to know the real requirement or preference of their customers.