Retail Vertical - AI is key going forward | Nexer
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AI IS KEY GOING FORWARD

Over the past year, the rise of generative AI services like ChatGPT has swept the world, sparking discussions about its impact on various industries. According to Linda Pimmeshofer, Strategic Retail Advisor, the benefits of AI in retail are plentiful, which is why retailers need to start experimenting now.

– I believe that in the future, retail must be more AI-driven than it is today. Not just in terms of using generative AI, which is the buzzword right now, but also to please the new generation called “know-me”, who is used to the personalised experiences offered by platforms like TikTok and Spotify.
 
By leveraging AI, retailers can mimic the logic of these platforms and provide consumers with personalised offers and recommendations at the precise moment when they are ready to make a purchase.
 
– Generative AI opens new possibilities for communication with customers. Manual services can be replaced, designers can engage in conversations with AI models, and customers can interact with AI designers and even order products that do not yet exist.
 
In envisioning the future of retail, Linda Pimmeshofer emphasises that both digital and physical interfaces to customers will continue to play crucial roles. The digital realm will provide convenient and personalised experiences, while the physical realm will cater to the desire to meet real people and to touch and feel products.
 
– The future of retail lies in the concept of “phygital,” where the boundaries between physical and digital realms disappear. Brands must prioritise differentiating themselves to cater to the diverse needs of consumers, whether through personal stylists for clothing or food-related services.
An inspirational example is Alibaba’s stores in China. These stores seamlessly integrate physical shopping with a larger experiential offering. Customers can enter the store and shop using their phones, enjoy home delivery of groceries, or have food prepared by an in-store chef, which can be consumed on-site or delivered to their homes. This integrated approach creates a completely different experience compared to traditional siloed channels.
 
But AI not only enables a new level of personalised customer interaction – it also drives operational excellence and resource efficiency.
 
– An intelligent supply chain powered by AI enables better business planning, faster responsiveness to competitors, and increased sustainability. By harnessing data-based insights, supply chains can be optimised, demand can be predicted more accurately, and products can be matched with buyers more effectively. Furthermore, sharing data among different actors in the retail ecosystem can enhance value flows and improve resource efficiency, concludes Linda Pimmeshofer.

NEXER ADVISORY: RETAIL 

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