Personalization is applied in generative AI.
In this race, each brand has its own strategy. Specifically, L'Oréal is collaborating with IBM and Nvidia to build a content lab applying generative AI with the strategic goal of "L'Oréal for the Future". Accordingly, by 2030, the majority of L'Oréal's product formulas will be developed from bio-based ingredients and follow the circular economy model.
"Traditional AI and generative AI are different," said Melissa Alcocer, founder and director of market research firm Inluxury. "Traditional AI only analyzes data and supports automation, while generative AI creates content based on analyzed data, from which product ideas, communication content, to recommendations and personalized care processes are formed. It is integrated and convenient creativity." This is a smart synthesis of many conventional product development processes, which are very time-consuming for brands. But with generative AI, content about trends, product formats, market access, and personalization for each type of customer all have specific directions.
“The beauty industry has unique opportunities to leverage this technology, especially in personalization, content creation and consumer engagement,” said Guilhem Souche, senior advisor at Sthrive.AI and former CEO at L’Oréal, Parfums Christian Dior and Coty. Guilhem Souche, citing the success of Coty, a beauty brand that has been experimenting with generative AI since 2021. To date, Coty claims to be able to create up to 1,000 marketing pieces in minutes, personalized to each platform and each market.
The analytical, synthetic and creative power of generative AI is attracting attention from brands. Specifically, Estée Lauder has joined hands with Microsoft to apply AI to shorten product development cycles. Unilever has internally deployed more than 500 AI tools in its supply chain, research, development and marketing... throughout its entire operating system. Meanwhile, ELF Beauty is testing many applications of GenAI, including utilities: voice search optimization, campaign ideation and augmented reality (AR) technology.
Melissa Alcocer believes that the impact of generative AI technology is evident and effective across the retail chain. Consumer interest in generative AI extends beyond digital touchpoints to unique personalized experiences. For example, AR mirrors can contribute to a 30% increase in shopping cart value. Using AR mirrors, consumers can see personalized interfaces, choose their own color scheme, and get real-time diagnostics tailored based on individual user data.
In fact, AI is increasingly integrated into brands’ retail and marketing processes. Accordingly, brands’ competitive advantage is no longer just in owning the technology, but also in how they deploy and apply it. Platforms that are easy to apply, synchronized, and localized in real time have a competitive advantage.
BAO LAM (According to Jingdaily)
Source: https://baocantho.com.vn/cac-nhan-hang-my-pham-ung-dung-ai-trong-canh-tranh-a188716.html
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