AI in fashion retail: recommendations for increasing conversions and loyalty
Case study

AI in fashion retail: recommendations for increasing conversions and loyalty

The initial challenge

Our client is a global leader in the luxury industry and a prestigious Made in Italy brand. With an established international presence through hundreds of boutiques and an e-commerce that serves millions of customers, the company is positioned as a benchmark for high fashion, synonymous with sartorial quality and timeless style.

Against this backdrop of excellence, the need emerged to further elevate the digital experience, making the most of appropriately anonymized Browse data to offer personalized product recommendations. The goal was twofold: to increase engagement and conversions through targeted suggestions and, at the same time, to make the user experience scalable and data-driven, both online (B2C) and in-store (B2E), leveraging Google Cloud technologies.

The solution

Huware designed and implemented a personalized suggestion system built on Google Cloud Platform. This system was meticulously structured for scalability, reliability, and real-time customization, ensuring customers felt understood, known, and supported at every stage through a comprehensive, yet personalized, experience.

The main technologies employed include:

  • BigQuery: For robust data storage and processing (covering both catalog and user behavior).
  • Recommendations AI: For generating highly personalized recommendations using advanced machine learning.
  • Retail API: For seamlessly exposing these recommendations on both the website and in-store app.
  • Cloud Scheduler: For automating recurring processes like data updates and model retraining.

Our approach involved creating two separate environments (test and production) to guarantee quality and security. Machine learning models were trained on extensive historical datasets and are constantly updated by capturing real-time events. The rollout began with the Italian site and was successfully extended across Europe.

The entire project was completed in approximately 3 months, encompassing technical setup, data integration, model training, a thorough testing phase, and final go-live.

The results

The new recommendation system has generated tangible benefits both in terms of user experience and business performance. The impact of the solution resulted in an increase in revenue over the previous year, accompanied by a significant increase in Click-Through Rate (CTR) on recommended products.

In addition, the conversion rate for users exposed to personalized suggestions showed significant growth, while increased site retention and reduced abandonment rates confirmed an overall improvement in engagement.

The adoption of this technology has resulted in a smoother, more personalized, and consistent user experience across all channels. The infrastructure created is now a strategic asset, scalable and reusable across multiple brands and markets in the group, with cost optimization achieved by centralizing the model and data pipeline.

Finally, the solution implemented by Huware, based on Google Cloud services, also demonstrated superior performance, in some cases outperforming other technology platforms in the market.

"In retail, and even more so in fashion luxury, understanding the customer is critical. This project is an example of how data, technology, and strategic vision can come together to radically transform the shopping experience. In just three months, we built a scalable, personalized recommendation system capable of increasing engagement and generating measurable results in terms of conversions and revenue—all thanks to collaboration with the customer and the targeted use of advanced Google Cloud technologies."

Martina Morlacchi Bonfanti
Practice Lead - AI & BI, Huware
Customer

Industry

Retail