Morning Brew - ☕ Artificially intelligent design

How automation could transform fashion.
March 01, 2023

Retail Brew

Bolt

Hi there. If you’ve still got Rihanna on the brain post-Super Bowl, Puma’s got you covered. The sportswear brand announced this morning she’s returning to the brand after serving as its womenswear creative director in 2014 with a simple two-word announcement: “She’s back.” Take a bow, Puma.

In today’s edition:

—Jeena Sharma, Erin Cabrey

AUTOMATION

A bit of this, a byte of that

A woman seated at a desk works on a tablet with designs spread before her. Ditto

Imagine if a machine could design, cut, and create several garments in minutes with limited human intervention. Sounds like a reality we may not see for some time, but if you’ve been paying attention, it’s already happening.

Automation and AI have transformed several industries, and now the robots are coming for fashion.

Take the German fashion marketplace Zalando, for instance, which spearheaded AI-powered fashion design based on customers’ favorite colors, textures, and other style preferences in collaboration with Google. Or Synflux, which, in 2019, collaborated on a project called Algorithmic Couture that uses machine learning to create optimal fashion pattern modules using computer-aided design tools.

Not only do these projects help make things easier for brands, but they also have the ability to create more revenue streams alongside business models and help retailers reevaluate their product-related processes.

Plus, it can have a “dramatic impact” on the design process, Erin Schmidt, an independent apparel consultant, told Retail Brew, pointing to the example of OpenAI, which developed CALA, a design image generative-AI platform which pops out a design in a few seconds based on a word prompt. “It would fast-track sketching and ideas into one step and would reduce design teams,” she said. “This could also impact the design process over the long term away from mood boards and collection themes to curated pieces.”

Cut, copy, automate: Beyond that, an integral part of the design process is cutting and sewing—which has also been disrupted by automation thanks to companies like Ditto, a sewing tech firm, that combines algorithmic intelligence with digital projection to make patterns paperless, customizable, and adaptable to specific body measurements—all in real time.

The tech has been over three years in the making and took 10 rounds of consumer research. With the ability to be set up within minutes, the platform features original patterns alongside options from major pattern producers.

Keep reading here.—JS

        

TOGETHER WITH BOLT

A reason to stay

Bolt

Need help keeping the spark alive? Sure, your customers have a million places to shop. But you can build customer relationships that stand the test of time—and Bolt can help.

Created in partnership with YouGov, Bolt’s How To Create Lifetime Customers analyzes the nitty-gritty shopper behaviors, teasing out crucial details about online shopping patterns and how brands can build and sustain loyalty.

Want a sneak peek? It turns out that discounts attract: 63% of customers say being offered a discount code will help them complete a purchase, even when they weren’t fully committed to the purchase beforehand.

With Bolt, customers stay logged in throughout their shopping journey, giving you the insights you need to turn checkout ghosters into customers for life.

Check out the full report here.

LABOR

Executive action

Kohl’s store Kohl’s

There’s been a lot of talk this month about the trouble with the retail CEO pipeline, and the many companies in a chief leadership flux. And as one major retailer finally named a permanent CEO this month, a few more announced departures. Here are February’s most notable executive shifts:

  • Kohl’s announced interim CEO Tom Kingsbury as its permanent CEO. Kingsbury has led the retailer since former CEO Michelle Gass departed in December to serve as president at Levi’s. The retailer also added a new chief merchandising and digital officer, Nick Jones, formerly CEO of UK-based Joules Group.
  • Eraldo Poletto, global CEO of Diesel, departed after seven months in the role, citing personal reasons.
  • Newell Brands CEO and board member Ravi Saligram will step down from both positions on May 16, with Chris Peterson, president of the Sharpie and Yankee Candle owner, set to take over the chief role.
  • Musician and producer Pharrell Williams joined Louis Vuitton as men’s creative director, succeeding the late Virgil Abloh. His first collection is set to debut at Paris Men’s Fashion Week in June.
  • The executive team at Williams-Sonoma saw a number of moves. Pottery Barn president Marta Benson was named CEO of Pottery Barn Brands, while also retaining her current role. Michelle Hummel, who has been with the company for 24 years, was promoted to lead its global business.
  • John Bagan, president of Southern California grocery chain Gelson’s, was tapped to also serve as its CEO, replacing Rob McDougall, who is retiring after 15 years with the grocer.
  • Cartier’s president and North America CEO, Mercedes Abramo, will become deputy chief commercial officer of its international business on March 1. Walter Bolognino, former Bulgari Japan president and CEO, will take over her former position.

Keep reading here.—EC

        

COMMUNITY

Coworking with Luke Amery

Codisto CEO and founder Luke Amery Luke Amery

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

Today, we’re getting to know Luke Amery, founder and CEO of omnichannel solution software company Codisto, whose clients include Amazon, eBay, Walmart, and Google.

How would you describe your job to someone who doesn’t work in retail? I help make selling merchandise on e-commerce marketplaces as easy as possible. Using software, my company, Codisto, is able to give merchants a platform that allows them to manage inventories and marketplace channels in the most efficient way possible to optimize sales.

One thing we can’t guess about your job from your LinkedIn profile? I work very closely with major e-commerce channel companies to ensure that their solutions and integrations are the most efficient they can be. I am also a father of three, which is another job in itself!

What’s your favorite project you’ve worked on? I’ve worked on the Amazon integration for Shopify sellers. At short notice, Shopify notified their customers that they were discontinuing their native Amazon integration, leaving millions of merchants somewhat in the lurch. They needed help, so Shopify reached out to Codisto and asked us to take over and build the new integration so merchants could operate on both platforms at once.

Which emerging retail trend are you most excited about this year, and why? In retail, and in technology in general, we’re seeing a big push for greater privacy for consumer’s data online and on their devices. Not only do I think this is important, but it’s something that’s exciting to me for the retail industry because it forces retailers to be more creative in their approach to getting in front of the consumer to sell their goods.

Keep reading here.—EC

        

TOGETHER WITH SHIPPO

Shippo

Times are a-changin’: Gather ’round, online merchants—2023’s market looks a lot different than last year’s. Shippo’s 2023 State of Shipping Report takes a deep dive into everything you need to know about building a resilient business and turning first-time buyers into loyal customers. Get the report here.

SWAPPING SKUS

Today’s top retail reads.

Loyal pain: Restaurants like Chipotle, Starbucks, and Dunkin’ have been changing their reward systems to make it harder for customers to score free items, citing inflation. The moves may push loyal customers away. (the New York Times)

By the book: Indie bookstore vet James Daunt joined Barnes & Noble as CEO in 2019, and turned its strategy toward curation to compete with Amazon. “For us, it means that we don’t have to sell boring books anymore, like technical manuals on how to wire electrical systems in your house. If you need to get that book from Amazon, that’s fine by me.” (Fast Company)

Beauty mark: A look at how Oddity, the parent company of beauty and wellness brands Il Makiage and Spoiled Child, became profitable. (CNBC)

Excel-ence: Do you want to improve in Excel, impress your boss, and secure that promotion? Then grab the Excel Dictionary bundle and gain access to the Excel cheat sheets of your dreams. Click here to get yours.

Unbeatable brands: Last year we saw post-pandemic shopping booms give way to historic inflation. Now Placer.ai’s white paper explores how 10 brands created opportunities in an uncertain market and developed winning strategies for 2023.*

*This is sponsored advertising content.

WHAT ELSE IS BREWING

  • Target’s Q4 earnings beat expectations, reporting its sales grew 1% year over year.
  • McDonald’s is facing backlash from some franchisees regarding its partnership with Cardi B.
  • Kohl’s named Dave Alves, former chief retail officer for Bealls Retail Group, as its new COO. The retailer also forecasted full-year sales declines between 2% and 4%
  • Instacart secured “sharply higher” sales and profits in Q4, according to the Wall Street Journal.
  • Walmart is partnering with AMC Theatres to sell its new line of microwave and ready-to-eat movie popcorn.
  • Sam’s Club said it will open up to 16 fulfillment centers over the next five years.

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Written by Jeena Sharma and Erin Cabrey

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