ASOS Case Study: AI Technology Triples Revenue Growth

Asos Case Study: Ai Technology Triples Revenue Growth

ASOS, a leading online fashion retailer, has been at the forefront of incorporating artificial intelligence (AI) and augmented reality to enhance the shopping experience for its customers. According to a report by PricewaterhouseCoopers (PWC), AI has the potential to contribute a staggering $15.7 trillion to the worldwide economy annually by 2030. This massive figure surpasses the current combined output of China and India, making AI the most significant commercial opportunity in today’s rapidly evolving economy.

The retailers commitment to innovation and embracing new technologies has paid off, as the company experienced a significant increase in profits from the end of 2020 to the start of 2021. These AI-driven features aim to provide personalized size recommendations and style suggestions, making it easier for shoppers to find the perfect fit and desired fashion items in record time. Their profits tripled during this period, showcasing the potential benefits of integrating AR and AI technology. Here are a few AI & AR technologies to highlight used by ASOS:

Virtual Photoshoots: One innovative approach they adopted was the use of virtual photoshoots, where six real-life models had digital replicas of the brand’s clothing mapped onto their bodies. This provided shoppers with realistic and engaging garment images, simulating an in-person shopping experience. This cutting-edge technology was developed in collaboration with Israeli AR and AI company Zeekit, and it allowed ASOS to continue providing new product releases each week.

Profile Builder: One of the key features ASOS employs is the Profile Builder, an AI-based solution that allows customers to provide specific information about their style preferences. This personalized approach enables ASOS to offer more relevant recommendations, ultimately leading to increased sales and customer satisfaction.

Product Style Suggestion: The ASOS Style Match is a visual search tool that allows users to find products on the ASOS app by simply uploading a picture or taking a photo. The AI technology analyzes the image’s color, pattern, and type of clothing to recommend similar products instantly. This feature makes it easy for customers to recreate a desired look or find inspiration from their favorite influencers and celebrities.

Product Fit Suggestion: The ASOS Fit Assistant is a size recommendation tool available on the ASOS website and app for selected items. By gathering information such as height, weight, age, and fit preferences, the Fit Assistant uses AI algorithms to analyze the data and suggest the most suitable size for the customer. This feature not only saves time but also reduces the likelihood of returns due to incorrect sizing.

Predictive Analytics: AI technologies enable fashion retailers to understand customer behavior and plan their inventory accordingly. Predictive analytics can help companies achieve sustainable practices by optimizing supply chain management and reducing the environmental footprint

In North America alone, the AI market was valued at $51 billion in 2021 and is projected to reach $1,591.03 billion by 2030, with a compound annual growth rate (CAGR) of 38.1% from 2022 to 2030. Furthermore, IBM‘s CEO predicts that AI will add $10 trillion to the global GDP by 2030, with the United Arab Emirates potentially gaining up to $200 billion from productivity improvements alone.

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