Fashion group Hyosung is enhancing its offline store operations by implementing artificial intelligence (AI) to analyze customer behavior. The group’s affiliate, Hyosung Global, announced on the 4th that it signed a Memorandum of Understanding (MOU) with IT solutions company MAZE on the 3rd for ‘AI-based Smart Retail Innovation’.
AI-Powered Customer Insights for Retail Enhancement
Through this partnership, Hyosung Global plans to leverage MAZE’s AI spatial intelligence solution, ‘RIZE,’ to gain deeper insights into its physical stores. The system will analyze key metrics such as the number of visitors, dwell times, customer movement patterns, and repeat visit rates. Additionally, it will identify customer interest levels within specific product and style zones. This data will be instrumental in optimizing store operations and improving the overall retail experience.
The initial rollout of the RIZE solution is scheduled for Hyosung Global’s Art Malling, a shopping center located in Hadan-dong, Saha-gu, Busan. The data collected at Art Malling will serve as the foundation for establishing standardized operational guidelines across Hyosung’s retail network. A key feature of RIZE is its ability to utilize in-store terminals to track the flow of returning customers and monitor changes in customer relationships within each store.
MAZE’s Proven Technology and Future Expansion Plans
MAZE has a proven track record of applying similar technologies in the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector. This collaboration aims to extend the application of these advanced AI capabilities to continuously operating offline retail environments. By adapting its solutions, MAZE seeks to expand its market presence beyond event-specific applications.
Choi Jun-ho, CEO of Hyosung Global, emphasized the strategic importance of this initiative. “Our goal is not merely to adopt AI technology but to understand the distinct behaviors and demands of customers in each store and translate these insights into tangible operational improvements,” Choi stated. “After validating the data-driven operational model at Art Malling, we plan to expand this system to the offline stores of all brands under the Hyosung Fashion Group.”
Song Ki-seon, CEO of MAZE, elaborated on the objectives of the RIZE platform. “Through RIZE, our aim is to enable our clients to accurately identify store-specific challenges and opportunities, and to track the resulting changes post-implementation,” Song explained. “We will analyze visitor, dwell, movement, and repeat visit data alongside actual operational and sales metrics to create a repeatable growth model.”
Phased Implementation and Contractual Agreements
Following the pilot phase at Art Malling, Hyosung Global and MAZE will determine the specific implementation sequence and scope for Hyosung’s subsidiary brands. Details regarding system supply, implementation support, and costs will be finalized through separate contractual agreements based on the results of the pilot program. This phased approach ensures that the AI solution is effectively integrated and optimized before a wider rollout across the Hyosung retail portfolio.
The Future of AI in Retail Operations
The integration of AI in retail is rapidly evolving, moving beyond simple data collection to sophisticated behavioral analysis. Solutions like RIZE offer retailers the potential to:
- Personalize Customer Experiences: By understanding individual customer journeys, retailers can tailor product recommendations and in-store interactions.
- Optimize Store Layouts: Analyzing foot traffic and dwell times can inform decisions about product placement and store design to maximize engagement.
- Improve Inventory Management: Predicting customer interest in specific items or zones can help optimize stock levels and reduce waste.
- Enhance Staff Training: Insights into customer behavior can be used to develop more effective training programs for sales associates.
- Drive Sales and Loyalty: Ultimately, these operational enhancements aim to increase customer satisfaction, encourage repeat business, and boost overall sales performance.
Hyosung Global’s adoption of AI marks a significant step towards a more data-driven and customer-centric approach in the fashion retail sector. The success of the Art Malling pilot program will be crucial in shaping the future of retail operations for the entire Hyosung group.
