H&M: Utilizing Big Data and Artificial Intelligence


In this digital era, the growth of online shops has surpassed brick-and-mortar retail stores. Therefore, retail stores like H&M have undergone a revenue drop, and 56% share down in the last 3 years. To overcome these things, H&M plans to change the way it utilizes information technology. The goal is to gather back customers with AI and big data tools through customizing products in every retail store based on the customer’s preference.

The management team at H&M try to figure out a new way to create value for their customers and found that big data could be a promising solution. Then, H&M utilizes a team to analyze algorithms regarding store receipts, returns, and loyalty-card data. Through their analysis, the team found that a more personal and high-quality customer experience is essential to give value to the customers. H&M also discover new strategies for tailors merchandise team by customizing what the local wants rather than taking a one-size-fits-all approach like they used to do. In the end, H&M management team hopes that big data will solve two major issues that hurting the company’s overall profits such as allow the company to avoid huge price cuts and reduce the number of unsold products.
On the other hand, the article also shows real proof of how the technology works. For example, one of the H&M store in Stockholm that adapts the big data and AI has experiencing revenue improvement. They try to analyze consumer behavior when they go to the store and purchase something. The data showed that customers desired coffee shops and flowers selling services during their shopping experiences, also selling products more in line with the local taste.
Kelly 陳莉時
(D0731529)

Comments

  1. willy erico謝洪標June 6, 2020 at 1:29 AM

    Willy Erico謝洪標
    D0726476

    I’m agree with this sentence “In this digital era, the growth of online shops has surpassed brick-and-mortar retail stores.” Because nowadays, people want the fastest one, the easiest one, the convenient one, people want to get the products without leaving their home. So, online shops appear in business world and it’s really convenience to customers and online shops is appear because of the big data and the technological development. H&M did a great job because they’re use big data and AI to gains more customers and make their revenue grow. AI and big data it is really important in business because from big data you can get more information, so for a company you can get more better and better everyday. AI helps a lot in the company to get more efficient and do effectively and to avoid “Human error”. For example like Apple, as you guys know about Apple, Apple is one of the world’s largest technology companies, selling consumer electronics such as iPhones and Apple Watches, as well as computer software and online services. Apple uses artificial intelligence and machine learning in products like the iPhone, where it enables the FaceID feature, or in products like the AirPods, Apple Watch, or HomePod smart speakers, where it enables the smart assistant Siri. Apple is also growing its service offering and is using AI to recommend songs on Apple Music, help you find your photo in the iCloud, or navigate to your next meeting using Maps. So, using AI and big data is really important and we can take a lot of advantage from it. Thankyou Kelly for this article.

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