The Future of Fashion: How AI and Personalization are Transforming the Shopping Experience

Alexander J. Levin
3 min readApr 4, 2023

Welcome to a new era in fashion. Remember when finding the perfect outfit meant spending hours sifting through racks at multiple stores, only to leave with nothing or items that never saw the light of day? Fortunately, those days are fading as artificial intelligence (AI) and personalization technologies reshape the fashion industry. Let's explore how these innovations are revolutionizing shopping experiences and highlight some apps and retailers leading the charge.

AI-Powered Personalization: No More Endless Browsing

We've all experienced it: scrolling through countless clothing items online, feeling overwhelmed by the sheer volume and unsure of what suits our style. AI and personalization come to the rescue. Platforms like Shein and Statement use advanced algorithms to analyze user preferences, clicks, searches, and purchase history to generate personalized recommendations. Shein has been described as being to commerce what TikTok is to entertainment. The result? A curated selection of items tailored to your style, making shopping more enjoyable and efficient. Instagram ads also suggest items based on your browsing, and Pinterest offers style-based searches.

Meet Sarah: A Busy Mom Seeking a New Wardrobe

Sarah, like many shoppers, struggles to find time to shop for clothes that suit her unique style. In the past, she would visit numerous websites, apply filters, and compare items from generic feeds. Comparing styles, quality, and prices across sites added considerable time to her shopping journey. Stitch Fix might be an alternative, but waiting days for handpicked items isn't ideal. Instead, Sarah now explores platforms like Shein (unbranded, up to 8,000 new items daily) and Statement (branded), offering a broader selection for faster, more informed shopping decisions.

The Social Side of Shopping Apps

One noticeable absence in online retail is the ability to add friends to wishlists or see what they're up to. I’ve even heard stories of friends sitting in the same room and passing around the laptop to feel like they’re “shopping together”. But that's changing. New shopping apps incorporate social functionality, enabling users to follow friends and see what they're loving. Social media sites like Instagram and TikTok have fostered a community of influencers sharing hauls, stories, and styling tips. This is facilitated by affiliate websites such as LTK, Amazon Affiliate Storefront, ShopMy, and startups like Flagship. Instagram and TikTok weren't designed as retailers, making shopping for specific items challenging. Pinterest has improved and recently purchased TheYes but still lacks a seamless experience. Flip, however, combines video-based TikTok-style influencer reviews, reward points, and gamification with a smooth shopping experience, in a way Verishop never quite achieved. Resale platforms like Poshmark, DePop, Curtsy, and ThredUp allow users to follow sellers they like, fostering relationships. Statement takes this a step further by transforming the clothing store into a social media platform with multiplayer functionality. It fosters a community of fashion lovers, where all users are influencers, even without owning inventory, and friends can finally feel like they are shopping online together.

Establishing Trust with Expertise and Helpful Information

Shoppers want to make the best purchase decisions, and Amazon leads the way with features like photo reviews, similar items, and item comparisons. Most online clothing retailers only offer similar items, while some, like Revolve, provide "Complete the Look" suggestions. Fashion apps and retailers are increasingly focusing on quality, sustainability, and affordability when personalizing content. Statement, for example, streamlines the process of finding designer items and their cheaper alternatives, comparing items from Zara, Asos or H&M to help shoppers stretch their budgets.

Adapting to the Future of Fashion

Retailers embracing AI and personalization are more likely to succeed. With these technologies shaping the fashion industry, shopping experiences are more efficient, enjoyable, and tailored to individual preferences. AI also plays a role in trend forecasting by companies like Heuritech and enables manufacturer-to-consumer platforms like Romwe and Cupshe. From Statement and Shein to Instagram and TikTok, forward-thinking platforms are harnessing AI-powered personalization and social features to ensure users have the best possible experience when searching for their next wardrobe addition. The future of fashion is here, and it promises a more exciting, customized, and connected shopping journey than ever before. By leveraging AI and personalization, retailers can better understand and cater to their customers' needs, ensuring their survival in an ever-changing industry landscape. And we haven’t even begun to discuss the role of generative AI (upcoming post)!

--

--

Alexander J. Levin

Based in Seattle. Wharton, Cambridge, Fullstack Academy, former M&A banker, former Cisco Global Infrastructure Funds Team, currently Amazon AWS.