Last update on: 10:35 am July 25, 2024 by fashionabc

Michael Kors has adopted Shopping Muse: the generative AI-powered retail assistant from Mastercard-owned Dynamic Yield. The iconic fashion brand is the first to make Shopping Muse available to consumers through an integration on its website in the U.S.

Michael Kors has adopted a generative AI-powered retail assistant from Mastercard-owned Dynamic Yield. Image: www.michaelkors.com

‘Shopping Muse’ translates each consumer’s colloquial language into tailored product recommendations, due to which consumers can quickly find products that match their inquiry as well as their demonstrated behaviour and preferences. It’s like having an on-call personal shopper guiding us through the cluttered online shopping space.

For example, a consumer can type, “I love shoes. What can you show me?” And, the generative AI-powered retail assistant shows a selection of shoes, empowering the luxury fashion brand to deliver a highly personalised retail experience. Per WWD, “As with its other products and services, Mastercard has embedded its privacy safeguards into Shopping Muse by adhering to the company’s responsible AI principles and standards to enhance shoppers’ experience while maintaining consumer privacy and security.” 

The global clothing market is expected to be worth USD 2.25 trillion by 2025. And with digitalisation and e-commerce set to become the leading channel for retail, fashion brands continue to rework their retail strategies in order to adapt to changing consumer values. Omni-channel retail, marketing and branding is the only way to stay relevant. What’s more, artificial intelligence is a formidable force poised for remarkable growth. 

Michael Kors’ integration of an AI-powered retail assistant is expected to boost the brand image and help it stay connected to consumers who are increasingly moving towards digitalisation. By embracing hyper personalisation, Michael Kors has created a retail experience tailored to the unique needs of each customer. 

This personalised approach has the potential to boost shopper satisfaction and increase revenue; in initial tests, ‘Shopping Muse’ generated around a 15-20 per cent higher conversion rate than traditional search queries. “As a trailblazer in ready-to-wear fashion, Michael Kors is a perfect example of how to put our ready-to-use technology to use” says Dynamic Yield CEO Ori Bauer. “Shopping Muse is helping translate the signature Michael Kors service to the digital world, delivering a satisfying shopping experience as singular and impactful as the brand’s aesthetic.”

Michael Kors market analysis and strong brand equity

Luxury fashion brand Michael Kors, established in 1981, has a diverse product portfolio under Michael Kors Collection, MICHAEL Michael Kors and Michael Kors Mens, including accessories, ready-to-wear, footwear, watches and fragrances. Michael Kors stores are operated worldwide in addition to digital flagships across North America, Europe and Asia, offering customers a seamless omni-channel experience.

In one of his biggest achievements, founder fashion designer Michael Kors was honoured with CFDA Geoffrey Beene Lifetime Achievement Award, its youngest recipient, and was named in Time magazine’s annual list of the hundred most influential people in 2013. In July 2017 Michael Kors Holdings Limited bought Jimmy Choo Ltd and on January 2, 2019 changed its name to Capri Holdings Limited. The multinational fashion holding company acquired Versace and John D. Idol, Chairman and CEO, stated in a release: “With the acquisition of Versace, we have now created one of the leading global fashion luxury groups in the world…”

In 2023, Tapestry, a conglomerate of iconic brands Coach, Kate Spade and Stuart Weitzman,  acquired Capri Holdings for a reported enterprise value of $8.5 billion. This blockbuster acquisition brought together six powerhouse brands across consumer segments and extended global reach and geographic diversification given the Tapestry and Capri Holdings’ highly complementary positions in Asia and Europe.

However, Capri Holdings’ Fourth Quarter Fiscal 2024 results showed that total revenue of $1.223 billion decreased 8.4 per cent compared to last year. “Overall, we were disappointed with our results as performance in the fourth quarter continued to be impacted by softening demand globally for fashion luxury goods. In our retail channel, sales trends improved sequentially in the Americas and EMEA while trends slowed in Asia,” revealed John D. Idol, Chairman and CEO, in a press release. “Versace, Jimmy Choo and Michael Kors continued to resonate with consumers as evidenced by the 11.6 million new consumers added across our databases, representing 14 per cent growth versus last year. This reflects the strong brand equity and enduring value of our three iconic houses.”

Per the press release, Michael Kors’ fourth quarter fiscal 2024 results showed that revenue of $822 million decreased 9.7 per cent on a reported basis and 9.2 percent on a constant currency basis. The decline versus prior year was primarily attributable to a worldwide softening demand for luxury fashion goods. Michael Kors’ global database, however, increased by 9.0 million new consumers, representing 13 per cent growth over the last year.