1.     Enhancing Personalization in Beauty

AI is a powerful tool for creating inclusive and personalized healthcare and beauty experiences. L'Oréal, for example, has been at the forefront of this innovation with their AI-powered skin diagnostics through the Perso device. This device analyzes the user’s skin condition and environmental factors to provide personalized skincare solutions. By dispensing a customized skincare formula, L'Oréal enhances the customer experience and demonstrates the potential of AI in personal care. This approach is both more personal and responsible, reflecting a deep understanding of individual customer needs and environmental impact.

2.     Interactive Displays: Engaging the Consumer

Interactive displays are another exciting application of AI in retail. Digital signage and smart mirrors, which use AI to provide information and recommendations, are transforming shopping into an engaging activity. H&M Group’s smart mirrors in select stores, for example, allow customers to virtually try on clothes, receive style recommendations, and even take selfies to share on social media. This innovation not only enhances the in-store experience but also seamlessly integrates the digital and physical shopping worlds.

3.     Personalization at Flagship Stores

Nike also utilizes AI to provide personalized shopping experiences in its flagship stores. Their House of Innovation stores in New York and Shanghai use AI to track customer preferences and provide personalized recommendations. Interactive displays allow customers to customize their shoes on the spot, and AI-driven systems suggest products based on individual preferences and previous purchases, creating a highly tailored shopping experience.

4.     Visualizing Products with AI and AR

AI is transforming how customers visualize and interact with products before purchase. The ability to integrate augmented reality (AR) with AI allows consumers to see how products fit into their lives without needing physical interaction. IKEA has harnessed this potential with the IKEA Place app, which lets users place true-to-scale 3D models of furniture in their living spaces via smartphones. Additionally, in-store AI-powered planning tools assist customers in designing their rooms, offering recommendations based on individual preferences. This innovation makes the shopping experience more inclusive and closer to the customer’s real needs.

5.     Immersive In-store Experiences

The success of AI-driven retail campaigns is not limited to customer personalization alone but extends to creating immersive and interactive in-store experiences. A notable example is Maybelline’s Fireworks mascara campaign crafted by Serviceplan Make Benelux. This campaign leveraged optical illusions and interactive displays to transform shop floors into dynamic, experiential spaces. This innovative approach was implemented across 16 cities in the Benelux region for the retailer Kruidvat, demonstrating a powerful strategy to engage consumers and drive them from online interactions directly into physical stores.

The Future of Retail with AI

The integration of AI in retail is not just an option but a crucial step forward in today's evolving market. As digital and physical shopping experiences continue to converge, retailers who embrace AI technologies will find themselves better equipped to thrive in this new era. The influence of AI on retail is both profound and expansive.

In my view, those who adapt and innovate with AI are not only responding to the changing demands of modern consumers but are also securing a vital competitive advantage in the marketplace.

Author: Monia Kayla, Managing Director at Serviceplan Make Benelux