How AI is revolutionising fashion shopping

The way Australians shop for fashion and accessories is undergoing a rapid transformation as Artificial Intelligence (AI) reshapes and revolutionises the online shopping experience. 

Australians are expected to spend around $16.98 billion in online fashion sales this year alone, and the market is growing rapidly, at around 11.5% per annum. 

And around 63% of organic search visits are on mobile phones, allowing users to take immediate action and purchase online or engage with companies through click-to-call buttons.

Marketing expert Dr Sonika Singh from the University of Technology Sydney (UTS) Business School says online fashion sales have surged globally, intensifying competition in the industry. 

“The move away from in-store fashion shopping was turbocharged by the Covid-19 pandemic, and it’s predicted that around 24% of fashion revenue globally will soon be via online sales,” she says.

In a recent paper Dr Singh highlighted the role of mobile-friendly AI-powered tools in enhancing the shopping experience, leading to increased customer satisfaction, loyalty, and sales.

“AI algorithms process vast amounts of data, including individual search preferences, purchase history and fashion trends to provide personalised recommendations that align with a customer’s unique style. 

“AI and video technology can also address size and fitting issues associated with online shopping through virtual try-on tools, along with chatbot assistants.” 

With try-on tools customers can experiment with styles and visualise how garments will suit their bodies. This saves time and reduces the likelihood of making ill-fitting purchases.

Dr Singh says fast fashion, which is characterised by agile supply chains and frequent inventory updates to reflect emerging trends, leverages AI to create high-demand clothes at a competitive price. 

“Through AI and machine learning, fast fashion online-only companies analyse customer data and predict future fashion trends, enabling designers to quickly create on-trend products,” says Dr Singh.

Some of the most popular online fashion stores in Australia include The Iconic, Asos, Net-A-Porter, and COS.

Australian consumers are also demonstrating new online shopping behaviour, with more than 30% purchasing products online through social media.

AI algorithms employed by social media platforms and fashion apps can curate personalised feeds based on individual interests and preferences.

By analysing style choices and preferences, machine learning algorithms can also suggest new trends, fashion influencers and style inspiration.

Dr Singh says online-only fashion stores are forcing multiplatform stores to rethink the in-store customer experience, and leverage data from physical stores for online shopping.

“Consumers now have more options than ever before, including searching and buying on mobile e-commerce platforms, via social media or a combination of online and in-store.

“While offline stores remain an important channel, it’s clear the adoption of AI in the fashion industry is driving innovation, and reshaping how we shop."