Chinese retailers are turning to generative AI to enhance their performance and boost sales, especially with Singles Day on the horizon. According to a recent report by Bain & Company, major players like Alibaba and JD.com have been heavily investing in AI since 2023, with a significant portion of their acquisitions focusing on AI technology.
The report highlights that over 500 merchants on China’s e-commerce platforms have embraced AI, with 52% using at least one generative AI-enabled tool. These tools include customer service chatbots and AI-generated content, which have shown positive impacts on productivity and operational cost reduction for the merchants.
AI is also gaining traction among Chinese consumers, with 12% of shoppers utilizing AI retail tools in the last six months. Generative AI is being used in areas like visual search, customer service chatbots, and voice-activated search and shopping. However, consumer excitement for Singles Day has slightly decreased, with some shoppers planning to limit their spending to household products only.
To address the challenges facing the retail industry, Chinese retailers are leveraging generative AI to deepen customer engagement, improve productivity, and find new avenues for growth. By implementing AI-powered personalization initiatives, retailers can increase revenue and achieve significant productivity gains in marketing, software development, and employee operations.
The report emphasizes the importance of Chinese retailers transitioning from AI experimentation to large-scale deployment. With a strong e-commerce infrastructure and robust AI research and development capabilities, Chinese retailers are well-positioned to succeed in the AI race and provide customers with personalized shopping experiences.
In conclusion, the adoption of generative AI by Chinese retailers is poised to revolutionize the industry and drive growth. By harnessing the power of AI technology, retailers can stay ahead of the competition, meet consumer expectations, and reshape the future of retail in China. For more information on this topic, please refer to the contact details provided by Bain & Company above.
