AI and broadband are eating retail for breakfast. In the first half of 2019, we’ve seen 19 retailer bankruptcies. And the retail apocalypse is only accelerating.
What’s coming next is astounding… Why drive when you can speak? Revenue from products purchased via voice commands is expected to quadruple from today’s US$2 billion to US$8 billion by 2023.
VR, AR and 3D Printing are converging with AI, drones and 5G to transform shopping on every dimension. And as a result, shopping is becoming dematerialized, demonetized, democratized, and delocalized… a top-to-bottom transformation of the retail world.
Welcome to Part 1 of our series on the future of retail, a deep-dive into AI and its far-reaching implications.
Let’s dive in…
A Day in the Life of 2029
Welcome to April 21, 2029, a sunny day in Dallas. You’ve got a fundraising luncheon tomorrow, but nothing to wear. The last thing you want to do is spend the day at the mall.
No sweat. Your body image data is still current, as you were scanned only a week ago. Put on your VR headset and have a conversation with your AI.
“It’s time to buy a dress for tomorrow’s event” is all you have to say.
In a moment, you’re teleported to a virtual clothing store. Zero travel time. No freeway traffic, parking hassles, or angry hordes wielding baby strollers.
Instead, you’ve entered your own personal clothing store. Everything is in your exact size…. And I mean everything. The store has access to nearly every designer and style on the planet.
Ask your AI to show you what’s hot in Shanghai, and presto— instant fashion show. Every model strutting down the runway looks exactly like you, only dressed in Shanghai’s latest.
When you’re done selecting an outfit, your AI pays the bill. And as your new clothes are being 3D-printed at a warehouse—before speeding your way via drone delivery—a digital version has been added to your personal inventory for use at future virtual events.
The cost? Thanks to an era of no middlemen, less than half of what you pay in stores today.
Yet this future is not all that far off…
Let’s begin with the basics: the act of turning desire into purchase.
Most of us navigate shopping malls or online marketplaces alone, hoping to stumble across the right item and fit. But if you’re lucky enough to employ a personal assistant, you have the luxury of describing what you want to someone who knows you well enough to buy that exact right thing most of the time.
For most of us who don’t, enter the digital assistant.
Right now, the four horsemen of the retail apocalypse are waging war for our wallets. Amazon’s Alexa, Google’s Now, Apple’s Siri, and Alibaba’s Tmall Genie are going head-to-head in a battle to become the platform du jour for voice-activated, AI-assisted commerce.
For baby boomers who grew up watching Captain Kirk talk to the Enterprise’s computer on Star Trek, digital assistants seem a little like science fiction. But for millennials, it’s just the next logical step in a world that is auto-magical.
And as those millennials enter their consumer prime, revenue from products purchased via voice-driven commands is projected to leap from today’s US$2 billion to US$8 billion by 2023.
We are already seeing a major change in purchasing habits. On average, consumers using Amazon Echo spent more than standard Amazon Prime customers: US$1,700 versus US$1,300.
And as far as an AI fashion advisor goes, those too are here, courtesy of both Alibaba and Amazon.
During its annual Singles’ Day (November 11) shopping festival, Alibaba’s FashionAI concept store uses deep learning to make suggestions based on advice from human fashion experts and store inventory, driving a significant portion of the day’s US$25 billion in sales.
Similarly, Amazon’s shopping algorithm makes personalized clothing recommendations based on user preferences and social media behavior.
But AI is disrupting more than just personalized fashion and e-commerce. Its next big break will take place in the customer service arena.