On February 27th, Artefact successfully held its third annual luxury industry sharing session. The event brought together experts from Alipay, Alibaba Cloud International, Tencent Cloud International, and representatives from leading luxury brands to explore innovative AI approaches to reignite engagement with Chinese luxury shoppers and to drive new growth in the industry.
Despite the challenges faced by the Chinese luxury market in 2024, Chinese consumers remain a crucial force globally. Digital and AI technologies are reshaping the luxury landscape, helping brands navigate shifting consumer behaviors and cross-border data restrictions. During the event, Artefact presented key market insights and best practices for AI application in the luxury industry.
AI Reshaping the “People-Product-Place” of Luxury
⏵ “People”: Reaching the Global Chinese Luxury Consumer Through Omnichannel Strategies
Data shows that Chinese luxury consumption is increasingly shifting overseas, with 40% of luxury purchases occurring outside of China in 2024. To address this trend, Artefact has launched the “ACT” omnichannel strategy, helping brands connect with consumers across their entire journey, from pre-trip engagement to post-trip follow-up. This strategy has been successfully implemented by several top-tier luxury brands.
⏵ “Product”: AI-Powered Insights for Optimizing Luxury Product Strategy
Accurate market forecasting and product selection are vital in the luxury sector. Artefact’s innovative “RISE” methodology, combined with a comprehensive AI solution, enables brands to optimize new product buying decisions and improve sell-through rates. By analyzing historical product data and social media trends, this methodology can predict potential bestsellers 6-7 months in advance with over 70% accuracy.
⏵ “Place”: Enhancing Customer Engagement and Sales Conversion with AI
The primary “place” for luxury is the offline store, where the interaction between sales staff and customers is crucial. By analyzing consumer communication data on social platforms, Artefact can provide personalized recommendations to sales associates, effectively enhancing conversion rates. Through this analysis, Artefact helps sales staff better understand customer needs and provide more targeted service.
One of the key success factors for luxury brands is personalized service, and AI enables this service to be scaled at a manageable cost, reaching a wider consumer base.
Chinese consumers have an average of 15 online touchpoints before purchasing luxury goods. If brands fail to interact effectively with consumers at these touchpoints, they are likely to miss sales opportunities. How to improve consumer experience through digital means has become an important issue that luxury brands must face.
Artefact’s solutions revolve around the “people-product-place” dynamic, integrating consumers, products, and sales staff to deliver personalized communication and service to each customer.
GenAI + Agent Driving Intelligent Upgrades in the Luxury Industry
Looking ahead, Artefact is leveraging GenAI + Agent technology to help luxury brands transition from traditional data analysis to intelligent decision-making. By advancing AI applications to the “Agentic Process Automation (APA)” stage, Artefact empowers brands to achieve efficient decision-making and precise execution.
