The apparel sector has been identified as one of the slowest when it comes to the adoption of future technologies such as artificial intelligence and robotics, according to a new study by GlobalData.
The Thematic Research: AI in Retail & Apparel report is part of a wider study into the growing adoption of artificial intelligence in several sectors and explores what is prompting its growth.
According to GlobalData, the AI platform market will be worth US$52bn in 2024, up from $28bn in 2019.
In the retail sector, AI platform revenue will reach $3.5bn by 2024 from $1.4bn in 2019, having grown at a CAGR of 21% between 2019 and 2024.
It notes several points of influence that have driven the shift to online including, recently, the Covid-19 pandemic which drove shoppers online and forced retailers to adopt omnichannel strategies to secure their customer base. It also notes a supply chain overcapacity, with automation growing in popularity in order to drive efficiencies.
The research found that one of the most adopted use cases of AI technology across apparel and beauty in-store is magic mirrors with the likes of Uniqlo adopting this.
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By GlobalDataBut on its thematic screen rank, which ranks companies based on overall leadership in the ten themes that matter most to their industry, such as virtual and augmented reality, sustainability, Covid-19, digital media, smart supply chains, and artificial intelligence, most of these themes were identified as being of greater importance to digital firms such as Amazon and JD.com as well as retailers such as Walmart, Tesco, and Alibaba.
Of apparel and footwear brands, only NIKE was identified as a “thematic leader”, due to its significant investment in AI. Nike launched the Nike Fit app, which allows customers to scan their feet with a smartphone camera to achieve accurate sizing. The AR technology uses a 13-point measuring system to map each foot’s dimensions. The more people that use the app, the more data is collected, and the more accurate the app becomes. This will mean that customers receive the right fit for them and help reduce the number of returns for incorrectly sized shoes.
Inditex and Kering, Next and Bestseller ranked between “thematic leaders” and “thematic laggards” with the technology themes listed expected to have a neutral impact on their earnings over the next 12 months.
H&M, Gap, Fast Retailing, C&A, on the other hand, would see the technology themes listed have a negative impact on earnings over the next 12 months.
Parent company to Primark, Associated British Foods, which does not offer a digital shopping channel, was found to be at the bottom of the digital leaders and laggards table, having not significantly invested in AI.