This document discusses Swarovski's retail approach and how data science can help improve the customer experience. It outlines Swarovski's goal of providing a unique, consistent consumer experience and commercial smartness. The challenges of digital savvy consumers are presented. Current implementations of data science including demand prediction and image recognition are described. Future applications are proposed such as using image recognition to predict customer taste and quickly make personalized offers. The interconnected online and offline retail future is envisioned.

1. MAURITS JANSEN
MANAGING DIRECTOR
SWAROVSKI BENELUX &
NORDICS

2. Passion for fashion and retail industry
International consumer goods business
Marketing & Economics
Leadership, developing brands, consumer future
MAURITS JANSEN
MANAGING DIRECTOR Swarovski BENELUX & NORDICS

3. SWAROVSKI IS NOT ‘JUST ANOTHER RETAILER’
EUR 3.05 billion revenue
Approx. 30,000 employees
Approx. 3100 stores world wide

5. A touch of glamour, yet within reach
Heritage and mastery
On trend
Responsible
Imaginative
Vigorous
Passionate
THE SWAROVSKI BRAND

7. What
Target
consumer
Distribution
priorities
Product
portfolio
Brand
strength
Channel mix
Assortment
structure
Idea to shelf
process
Consumer
engagement
Consumer
Product
Channels
Digital
Footprint

8. Profitable
growth & higher
consumer
satisfaction
8
Unique, consistent
consumer experience
Commercial smartness
and efficiency


OUR GOAL

9. Digital savvy consumers
24 hrs online
Personalization
Omni channeling
Convenience shopping
THE CHALLENGE: A CUSTOMER-CENTRIC RETAIL APPROACH

10. STORE PRODUCTIVITY
MERCHANDISING EXCELLENCE
RETAILING EXCELLENCE
OPERATIONAL IMPROVEMENT
‘Big Data: business relevance you can’t
see but with the right technology you can!’
FROM TOP DOWN TO BOTTOM UP APPROACH

11. CONSUMER PURCHASE FUNNEL
Product: coverting meaningful input to relevant
output
Media: creating a constant dialogue with the
consumer
Speed to market: predictions on planning,
production, buying and merchandising
Loyalty: from consideration to purchase, from
purchase to re-purchase
How can data science help us to improve the customer experience?

12. WHAT HAVE WE IMPLEMENTED SO FAR?
Predicting daily demand of 40.000+ SKU-shop combinations
To minimize lost sales and redundant stock at end of season
Business value Consumer value
19.1% out of stock decrease
for best-selling products
Increased shopping experience: match
between assortment and customer needs on
a local level
No old season products in store
7.5 % increase in turnover
21% stock level decrease for slow moving
products
Sales of slow moving products not
affected

13. IMAGE RECOGNITION: THE NEXT STEP IN DATA SCIENCE
WHY ARE PICTURES SO IMPORTANT?
People can easily picture themselves owning
the product
Makes the product much more tangible
More value is attached to the product

14. IMAGE RECOGNITION USED TO PREDICT CUSTOMER’S TASTE
‘Nowadays most intelligence is focused on textual data, but consumers are focused on images.
For taste sensitive products this can be enhanced with image recognition, because it is hard to
capture style related elements and product feel in product characteristic tags.’
THE ADVANTAGES OF IMAGE RECOGNITION

15. Brand: Swarovski
Type: Remix Bracelet
Manufacturing year: 2017
Color: Blue
Materials used: Rose Gold
Price: 69€
Usually available data
Analyzing pixels
to detect color
Analyzing surrounding
pixels to detect shape
Calculating on images
But what about shape or style?
HOW DOES IMAGE RECOGNITION WORK?

16. BASED ON THIS PIXEL DATA TASTE CLUSTERS ARE CREATED
THAT REPRESENT SOMEONES TASTE

17. As input for design for new products, to predict the success of the introduction in advance
HOW TO IMPLEMENT THIS IN THE FUTURE OF RETAILING
Recommendations of new product introductions, by prediction which customers will like them most.
Algorithms that replicate store representatives by getting an accurate grasp of the consumer’s taste
Quickly make an offer that matches individual needs
Offline in combination with VR

18. THE FUTURE OF RETAIL
‘The online and offline environment will be intertwined to an extent that everything is connected and everyone
online. This provides an abundant number of data and will bring the experience of the consumer to the next
level’

19. THANK YOU
#SWAROVSKIBEBRILLIANT