Hong Kong-based retailer A.S. Watson Group will invest US$70m over the next three years in big data.
Investing in AI venture
The retailer will invest in a Canadian artificial intelligence (AI) venture company Rubikloud. With the app, the retailer will be able to analyse customer characteristics and their purchase history using AI. The information will then be used for individual marketing, designing personalised offers and prediction of future sales.
The retailer has tested the app at European stores. Sales from personalised promotion activities increased by more than 8% over 10 months.
Building a big data analysis system
A.S. Watson will consolidate its customer data holdings into a big data analysis system to optimise promotions and business operations by better understanding and targeting the shoppers.
“We are investing in big data amid global economic uncertainties because we believe that technology is a critical enabler for successful retailing in today’s world,” said Malina Ngai, chief operating officer of A.S. Watson Group, in a statement. Ngai added that the goal is to “focus our resources, from back-end support to the shop floor, on building a better customer experience.”
About A.S. Watson
A.S. Watson is a subsidiary of conglomerate CK Hutchison Holdings, with more than 13,000 retail stores in 25 countries and regions such as Asia and Europe.