The Amazing Ways Retail Giant Zalando Is Using Artificial Intelligence Posted on : Sep 21 - 2019

Founded in 2008 by business school friends Robert Gentz and David Schneider, German-headquartered “etailer” Zalando is as much of a tech company as it is a retailer. Today, it’s Europe’s leading online fashion platform serving 17 European markets with 400,000 products from 2,000 brands. One reason the company can provide a personalized user experience to its 27 million customers is because of the way it uses artificial intelligence (AI) and machine learning just like the other 28 percent of retailers who used artificial intelligence in 2018. Here are only a few of the ways Zalando uses machine learning and artificial intelligence today.

Algorithmic Fashion Companion (AFC)—A Virtual Style Assistant

One of the ways Zalando uses technology to improve the user experience is through its Algorithmic Fashion Companion (AFC), a digital outfit recommendation tool that can generate outfit recommendations in real-time. The algorithm’s recommendations are based on products that the customer has put in their “wish list,” expressed interest in or purchased before. Human stylists provide adjustments to the algorithm to be sure its recommendations follow current fashion trends. AFC helps inspire Zalando customers as well as deliver outfit recommendations from what otherwise could be an overwhelming amount of choices. It’s not only a good user experience for the customer but drives business as well. Zalando reports that outfit recommendations drive 40 percent larger basket sizes. They also found that male customers are highly engaged with the recommendation engine. While AI helps the company scale its recommendations, it anticipates that it will always need human stylists. Zalando is working on how to create a similar recommendation engine for its beauty products as well.

Machine Learning to Understand Customers Better

At Zalando, there are teams, that include 120 researchers, focused on how machine learning, that can help the company better understand fashion, what makes a good outfit, the intent of the customer at the moment they are on the site as well as to discern what each customer likes. Ultimately, with the help of machine learning, Zalando hopes to be able to provide a personalized boutique experience for every single customer. View More