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AI in the Fashion Industry: Uncovering the Latest Trends

Discover how generative AI is reshaping the fashion industry, from real-time trend detection to boosting operational efficiency. Gain insights from Europe’s top fashion markets and leverage AI tools to stay competitive.

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6mins

In fashion's constantly shifting environment where trends move as quickly as the seasons, staying ahead can feel like an impossible task. But what if you had tools that not only spotted these trends in real time but also acted as your personal fashion assistant, guiding you to make better choices? This isn’t just a future fantasy — this is AI-driven innovation in the fashion industry that’s happening right now. Discover how these AI tools are revolutionising both consumer experiences and business strategies.

How AI is changing the fashion industry

Artificial intelligence and machine learning are playing a transformative role in revolutionising the fashion industry. The power of data is now pivotal in not only setting trends, but also executing a wide array of functions that enhance both consumer experiences and business operations. From trend prediction and supply chain optimization — where AI helps streamline inventory management, demand forecasting and production planning — to personalised shopping, AI is becoming indispensable. With virtual try-ons, automated customer service and visual search, AI is transforming every aspect of the fashion landscape. By leveraging these AI-driven tools, retailers can forecast trends, refine strategies and gain a deeper understanding of the European consumer landscape, tailoring product offerings to meet exact buyer needs. This comprehensive integration of AI not only provides a competitive advantage, but also helps the industry move towards a more sustainable and predictable consumer environment.

Unlocking the power of trends

The digital discovery process for lifestyle and fashion products has traditionally focused on convenience over inspiration, engagement and fun. However, as trends appear and evolve faster than ever, it’s crucial for brands to not only identify these trends, but also determine the optimal point on the trend curve to engage with them. Trends can be fleeting, with micro-trends lasting only weeks, while more substantial, cyclical trends may endure for months or even years. Understanding where a trend stands in its lifecycle — whether it's just emerging, peaking or beginning to fade — is vital for brands aiming to capitalise effectively.

Unlocking the power of trends

Zalando is addressing this challenge by introducing Trend Spotter, an innovative tool designed to enhance the shopping experience.

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How Trend Spotter works

Trend Spotter utilises advanced AI algorithms to identify emerging fashion trends across six major European fashion capitals weekly: Berlin, Paris, Milan, Antwerp, Stockholm and Copenhagen. Unlike traditional methods that rely heavily on sales data, this trend-spotting tool uses a variety of data points to capture the true desires of customers. This includes items being searched for, liked or added to shopping carts. By focusing on these metrics, the tool provides a more accurate and dynamic representation of rising trends. This gives fashion brands a head start in discovering new trends and steering their assortment before those trends become mainstream. Additionally, the majority of trends on the platform are accompanied by articles written by fashion experts, providing deeper insights into why a particular item is trending and its relevance in the current fashion landscape.

How Trend Spotter works

The power of Trend Spotter comes from Zalando’s unparalleled access to data, serving 50 million active customers from 25 European countries across six fashion propositions. This vast network allows us to see trends no one else can, offering insights that are both credible and unmatched in the industry.

Trend Spotter is a new experience that shows which fashion trends are emerging on Zalando across six major European fashion capitals. We are uniquely positioned in that we connect thousands of brands with millions of customers across Europe. Because of this, we are able to highlight emerging fashion and lifestyle trends in Berlin, Paris, Milan, Antwerp, Stockholm and Copenhagen every week - all powered by our own data.

Tian Su,
VP Personalisation & Recommendation
Tian Su, VP Personalisation & Recommendation

‘Oversized TikTok outfit, thank you’

In today’s e-commerce landscape, turning that inspiration into a purchase isn’t always easy for customers, especially when they’re unsure of what exactly they’re looking for. The root of this challenge lies in the limitations of traditional search, a hurdle faced across the entire industry.

To solve that challenge, Zalando is redefining fashion discovery with Zalando Assistant, launched in 2023 in four markets. Powered by OpenAI’s advanced language models, this tool allows customers to navigate Zalando’s vast assortment using natural language, fashion-specific terms or, more recently, voice commands, making the search process intuitive and personalised. Over 500,000 customers have already interacted with it, with each conversation averaging about four exchanges. Customers use Zalando Assistant for nearly one in four searches, often seeking advice or finding products for specific occasions. It handles queries that the current search system cannot, such as ‘shoes for blue jeans’. Examples of how customers are engaging with Zalando Assistant include: ‘Need help to buy my fiancé a birthday present’! or ‘Oversized TikTok outfit, thank you’.

Next for Zalando Assistant is an expansion beyond Germany, Austria, the UK and Ireland to serve all customers. The technology behind the assistant will also be integrated into other areas of Zalando, such as the search bar, allowing users to input more detailed queries and receive more accurate results. And that’s not all – during the recent financial update, ongoing investments in technological capabilities were confirmed. Following months of successful collaboration, Zalando and OpenAI have committed to deepening their partnership and developing more innovative generative AI solutions for the fashion industry.

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