E191: Michaela Wessels - Leveraging Technology and AI in Fashion to Become an Inclusive Brand That Meets Customer Demand

It’s time to delve into the dynamic challenges and strategies in the fashion retail industry. 

Michaela Wessels, CEO of Style Arcade, explores the critical role of AI in predicting customer demand, leveraging product data for growth and the importance of size inclusivity for brands. 

Michaela has a background in finance, with over a decade of experience in global retail, including formative roles at Lacoste and The Iconic in Visual Merchandising. Style Arcade has seen some of the world’s most notable brands replace spreadsheets with intelligent analytics and digital range planning.

Michaela shares insights on the 80-20 principle and the transformative impact of Style Arcade in making well-informed product decisions. The discussion also delves into the evolving trends in digital marketing and technology for online stores. 

Tune in as they shed light on the intricacies of retail and eCommerce in an ever-changing landscape.

Topics Covered: 

00:25 - Michaela Wessels, CEO of Style Arcade, discusses AI tech in fashion retail

04:44 - How Style Arcade helped a brand grow from $25M to $500M in two years by focusing on product data and demand

09:14 - Retailers should focus on improving returns and using technology to reduce them

11:54 - The truth behind retail growth: market spend, product purchase, tech limit, hidden data and the 80:20 rule

14:52 - Nervousness about 20% selection, need for visual data and challenges in sizing and stock management

19:34 - Explore gaining full price sales to increase margins and understand customer buying behaviour deeply

22:35 - Working with a sportswear brand, AI revealed performance insights, exciting and empowering buyers

24:41 - AI in fashion tech can speed up the market, automate product attribution, analyse attributes and avoid cannibalization in retail

28:13 - Brands should prioritize size inclusivity based on customer demand and data

33:45 - Focus on simplicity, brand marketing and flexible technology decisions for success.

35:48 - Choosing adaptable, open tech is crucial for growing businesses. Making short-sighted decisions can limit future growth

39:56 - Retailers must prioritise planning and forecasting for key sales events like Black Friday and Cyber Monday, which can make up a significant portion of their annual sales. Analysing data and post-event evaluation is crucial

41:50 - Focus on the present, not dwell on the past/future. Live in the present.

44:39 - Experience brings challenges and fun